Metinvest sends UAH 3.7 bln to help Ukraine during 15 months of war

Apr 12, 2023

Since the beginning of the full-scale war, the Metinvest Mining and Metallurgical Group has allocated UAH 3.7 billion to help the government and its citizens, of which pver UAH 2 billion went to the needs of the army as part of the Rinat Akhmetov's Steel Front defence initiative.

According to the company's press release, in the face of the full-scale invasion, Metinvest mobilized all its resources to bring Ukraine's victory closer.

"We used to be happy that our steel was chosen for building ships, bridges, and majestic structures. And now we are proud that Metinvest's steel is saving the lives of servicemen and women, ensuring their comfort on the front line, and guarding Ukraine's borders. In peacetime, Metinvest's team was a pillar of Ukraine's economic stability, and now our people are fighting for the independence of their homeland on the front lines and in the rear. Yes, we did not choose war. However, it is our choice to fight. For freedom, self-identity, and the future that victory will bring," Metinvest CEO Yuriy Ryzhenkov said.

According to the press service Metinvest is making plans to restore the country after the victory, continuing to work with a focus on the future, although its enterprises in Ukraine are under constant threat of enemy shelling. The group's assets in Mariupol and Avdiyivka suffered as a result of the fighting, while Mariupol is temporarily occupied.

It is also noted that since the beginning of the full-scale war, Metinvest's work has been affected by logistical restrictions, blackouts, rising production costs and falling prices for certain types of products. Despite this, other enterprises of the group operate with different levels of workload, taking into account security, logistics, energy, economic and other factors.

Since the beginning of 2023, after the stabilization of the energy supply, the group has been able to gradually increase the loading of iron ore assets in Kryvyi Rih to at least 30% of the pre-war level and maintain a focus on pellet production. The restoration of power supply also provided more stable operation and product flexibility at Kamianske and the joint venture Zaporizhstal. Now each of these enterprises operates on two blast furnaces.

At the end of May, Zaporizhstal's blast furnace No. 3 was shut down for a major overhaul, which is expected to improve the efficiency of the furnace and the entire blast furnace process.

Pokrovske Coal is operating at a high level of capacity utilisation. Construction of mine block No.11 is underway. The enterprise is currently operating five longwalls. Three more longwalls are scheduled to be commissioned by the end of the year.

Metinvest's priority is to take care of the employees who are ensuring the production process. All enterprises have bomb shelters equipped to accommodate people for a long period of time. The shelters have water, food, and medicines.

The most important task of business in wartime is to work together with the whole country to achieve victory. This includes paying taxes, supporting the army and the economy, and taking care of people. In the first quarter of 2023, Metinvest, including its associates and joint ventures, paid over UAH 2.5 billion in taxes and duties to budgets at all levels in Ukraine.

Metinvest continues to fight against theft by the Russian Federation, which illegally removed more than 234,000 tonnes of the company's steel products from Mariupol. In particular, 16 Group companies have filed claims with the European Court of Human Rights against Russia for damages caused to the Group's property and possessions in the city of Mariupol and other territories of Ukraine since 24 February 2022.

Metinvest joined Rinat Akhmetov's Steel Front defence initiative in the first days of the full-scale war and has been helping to strengthen the defence capability of the armed forces. The Group has spent UAH 2 billion for the needs of the Ukrainian army.

In the spring of 2022, Metinvest launched the production of steel used to make plates for body armour. The steel products are thoroughly inspected, and the finished gear is sent to the front lines. In addition, a stock of ready-made plates has been created that the military can receive free of charge upon request.

In a year of war, Metinvest has become one of the largest private donors to the Ukrainian army. In total, the country's defenders received 25,000 helmets and over 150,000 bulletproof vests from the group, meaning that one in ten bulletproof vests in the army was manufactured or purchased with Metinvest's help.

The Group's special steel is also used to make armoured shields for the operators of large-calibre weapons and protective elements for vehicles operating on the front lines. Metinvest's steel products are also used to manufacture mobile buggies. In the spring of 2023, the Metinvest-SMC, a sales entity of the Group, shipped 3.8 tonnes of rolled steel to the Southern Operational Command, which is enough to equip ten buggies.

Since the start of the full-scale war, the Group's enterprises have manufactured 200 mobile shelters and delivered them to the front line to strengthen trenches. Metinvest has also produced more than 80,000 anti-tank hedgehogs and spiked chains to defend against wheeled vehicles. The Group has provided 43 tonnes of wire rod for the manufacture of mini-bastions, 820 tonnes of sand and 25,000 tonnes of slag and ensured the production of 116,000 construction staples and other items.

Metinvest has set up a systematic supply of equipment to the front lines, some of which is purchased abroad.