ZAPORIZHZHIA, Ukraine (AP) — The steel complex in a region of Ukraine facing occupation resembles a dystopian landscape filled with flames, chutes, and intricate pipelines, sprawling like a small city. Spectacular sparks illuminate the sky above the open furnaces, where workers continuously transform iron ore into streams of molten metal. Zaporizhstal Iron and Steelworks, one of Ukraine’s major steel facilities, sits in the industrial east of the country, on edge due to Russia’s ongoing invasion nearby. As battles rage on the front line merely 25 miles away, the plant remains a crucial supplier of materials for military equipment and various industries, including automotive, appliance, and construction sectors.
Plant supervisor Serhii Zhyvotchenko admitted that morale has dwindled amidst the challenges, but emphasized the necessity of pushing forward. However, the factory now faces another threat – the looming possibility of a trade war sparked by U.S. President Donald Trump’s recent actions. Trump’s decision to impose tariffs of at least 25% on imported steel and aluminum has sent shockwaves through Ukraine, a country already reeling from economic instability.
The steel industry, a vital component of Ukraine’s economy, has suffered significantly since the conflict with Russia began, with exports plummeting. Ukrainian officials and business leaders fear the impact of Trump’s tariffs, which could cost the industry billions in revenue and the government in lost taxes. Trump’s executive order on tariffs, coupled with his changing stance on Russia and Ukraine, has heightened concerns in Kyiv about the country’s future relationships and security.
In response to Trump’s actions, Ukrainian officials are seeking negotiations to secure exemptions for Ukrainian steel products exported to the U.S., aiming to protect the industry and maintain access to crucial markets. The uncertainty surrounding trade relations and the geopolitical landscape has left Ukraine grappling with an uncertain future, as the country strives to navigate these challenging times.
The EU represents just 0.81% of total U.S. steel imports and poses no significant threat to the U.S. industry. The Ukrainian Steel Association emphasized the importance of maintaining the tariff exemption for Ukrainian steel, including products made in the EU using Ukrainian steel. This exemption is crucial in supporting Ukraine against Russian military aggression and allows Ukrainian steel exporters to sustain operations, contribute to the national budget, and bolster the Ukrainian economy.
At the Zaporizhstal plant in southeast Ukraine’s Zaporizhzhia region, the process of smelting iron ore leads to the production of millions of tons of cast iron and steel for export. Workers at the plant, facing challenges due to the ongoing conflict with Russia, strive to maintain production levels despite operating at reduced capacity and with fewer personnel.
Metinvest Group, the owner of the Zaporizhstal complex, has faced losses as a result of Russian occupation and control over key steel plants and coal mines. The company must now import coal from Europe and the U.S. to sustain steel production at the Zaporizhstal mill. Energy costs have soared due to attacks on Ukraine’s energy grid, disrupting trade routes and export logistics.
The uncertainty surrounding U.S. steel tariffs has raised concerns for Metinvest Group, particularly regarding the potential impact on Ukrainian steel exports to Europe. The company fears that European countries may impose import duties on Ukrainian products in response to new U.S. taxes, leading to significant challenges for their operations. Workers at the plant are hopeful for a positive outcome amidst these turbulent times.
During production, the molten metal resembling lava will be poured into the containers for further refinement and casting. The steelworkers then proceed to initiate the entire process once more. “We may feel tired, we may experience tension, we may embody any state, but we must persevere and continue working,” emphasized Myronenko. Associated Press reporters Dmytro Zhyhinas in Zaporizhzhia and Voldoymyr Yurchuk in Kyiv made valuable contributions to this report.
