Ukraine’s metallurgical sector has plunged into recession mainly due to the crisis in the eastern region of Donbas.
Last year, the output of steel, one of the main exports items of Ukraine, fell by 12%, while the production of pig iron and rolled metal was down by 15% and 14%, respectively, according to Ukrmetallurgprom association’s post on Facebook.
The seizure of the Ukrainian enterprises by pro-Russian militants in Donbas was the main cause behind the decline. Other factors behind the recession were the falling prices of metallurgical products on the global market and logistic problems.
In March 2017, the militants took over the Ukrainian-controlled businesses operating in the occupied areas after a group of Ukrainian activists had blocked the movements of trains transporting coal and other raw products from the non-government controlled areas.
In 2016, Ukraine’s metallurgical industry recovered from a two-year recession, with all three key branches showing a growth of between 5.5% and 7.8%. Metallurgy generates more than 20% of Ukraine’s exports revenue and provides about 300,000 jobs. (UNIAN/Ukrainian metal)