Why Industrial Policy Must Be a Priority for Ukraine's Post-War Economy.

The Foundational Role of Metallurgy

According to TSN.ua: Yuriy Ryzhenkov, CEO of the Metinvest Group, has argued that rebuilding Ukraine's industrial base must be a central focus for the nation's post-war recovery. He highlighted the steel industry's crucial economic role, which accounted for roughly 10% of Ukraine's GDP before the full-scale invasion but has since fallen to nearly 6%. The sector's importance is amplified by a powerful multiplier effect, where every direct metallurgy job supports an additional eight positions in related industries.

Despite the loss of its assets in Mariupol and Avdiivka, Metinvest remains the country's largest industrial player. Over the past five years, Ukraine's major steel enterprises have paid UAH 190 billion in taxes and duties, equivalent to approximately USD 6.2 billion. In 2024 alone, the tax contributions of four key metallurgical companies constituted 1.6% of total revenues for budgets at all government levels.

The Imperative for a Strategic Industrial Policy

Ryzhenkov noted that the full-scale war forced Metinvest into a period of asset loss and a struggle for survival.

He stressed that a coherent industrial policy requires immediate attention. Furthermore, he pointed to Ukraine's European integration as opening new opportunities that could positively influence industrial and broader economic development.

Therefore, the significance of the metallurgical sector and the need to prioritize industrial policy are integral components of Ukraine's post-war reconstruction strategy. For context, a robust industrial sector is often seen as a cornerstone for national economic resilience and long-term growth.

Revitalizing the steel industry could be a critical step for stabilizing Ukraine's economy, given its historical contribution to GDP and job creation. Considering the war's impact on industry, implementing an effective industrial policy and leveraging opportunities arising from European integration could ensure not only recovery but also the sector's future growth.