The largest metallurgical plant in Ukraine, “ArcelorMittal Kryvyi Rih,” is on the brink of halting operations due to record-high electricity costs. This was reported by the company’s financial director, Pavlo Zadorozhny, who emphasized that the plant has been operating at a loss for the fourth consecutive year, and resources for support from the parent company are limited.
This is reported by Business • Media
Electricity Prices Exceed European Levels
In May of this year, the electricity tariff for “ArcelorMittal Kryvyi Rih” reached over €94 per megawatt-hour, the highest rate in Europe. In comparison, in France, where nuclear generation also predominates, the price is around €20 per MWh. This situation has arisen due to the monopoly position of “Energoatom” in the market and the restrictions on importing cheaper electricity imposed by “Ukrenergo.” As a result, Ukraine effectively lacks a fully functioning competitive electricity market.
Risks to the Economy and Jobs
“We cannot pass additional costs onto consumers, as the market dictates its own prices. If nothing changes, we will not be able to survive,” Zadorozhny warned.
A potential halt in production at the plant would have significant consequences for the country’s economy. Approximately 18,000 jobs would be at risk, as well as over $1 billion in foreign currency earnings annually. Such a development could substantially impact both the regional labor market and the state’s foreign currency inflows.