How Ukraine Can Become Europe's Industrial Pillar

Ukraine can become Europe's industrial partner, due to its favourable location, Europe's largest iron ore resources and the lessons of war, including how to remain competitive amid unpredictability.

The pillar of Ukraine's economy is the mining and metals sector, whose weight remains significant despite four years of full-scale war. In 2021, before the 2022 invasion, it accounted for over 10% of Ukraine's GDP and one third of exports. In 2024, these stood at 7.2% and 15.4%, respectively. The war has changed approaches to management and business resilience: enduring requires adaptability, speed of decision-making and focus on internal efficiency.

"We have lost almost 50% of our business in Ukraine. Despite everything, Metinvest remains the country's largest industrial player. A strong state is impossible without a strong economy, and an economy is impossible without a powerful industrial base," says Yuriy Ryzhenkov, CEO of Metinvest Group, Ukraine's largest mining and metals company, with operations in the EU, UK and US.

So, Ukraine is retaining its industrial potential even under pressure. Why does this matter for Europe? By iron ore reserves, Ukraine ranks first in Europe and among the top ten globally. Metinvest is already conducting a large-scale equipment modernisation to produce premium iron ore feedstock (DRI/HBI) for low-carbon steelmaking, exactly what is needed for the EU's 'green' transition.

The global context creates an additional window of opportunity for Ukraine. The world steel industry is under pressure from China, which generates a significant steel surplus, and intensifying competition in the EU and US. Meanwhile, Europe is introducing new regulations, including the Carbon Border Adjustment Mechanism, which makes imports of high-carbon steel more expensive. This increases demand for low-carbon products, stimulates decarbonisation and strengthens interest in DRI/HBI feedstock, which Ukraine can supply.

For this reason, the mining and metals sector can accelerate Ukraine's EU integration, particularly through joint projects. For example, Metinvest's 'green' steel plant in Italy, Metinvest Adria, will create a consumer of Ukrainian iron ore and metallurgical feedstock, strengthen Europe's industrial autonomy and support decarbonisation, among other synergies.

"European integration opens up new opportunities for Ukraine, whose processing industry will become an important stage in Europe's 'green' transition. At Metinvest, we are ready to become a bridge connecting Ukrainian and European steelmaking. Our Italian Adria project is not only about decarbonisation. It is a strategic direction: a model for a new European steel industry," Ryzhenkov says.

Innovation is impossible without professionals to produce steel and drive transformation. Before the full-scale war, Metinvest employed 113,000 people; today, the figure is around 50,000. People have become even more important, and to retain them, the Group is restructuring business processes so that they are centremost. Metinvest considers human capital as important as advanced technologies.

As such, Ukraine can become the EU's key partner in 'green' steel and the development of industrial value chains. To this end, channeling EU resources and funding from global financial institutions towards the country's post-war recovery — and industry — will be a prerequisite.

This advertiser content was paid for and created by Acumen. Neither CBS News nor CBS News Brand Studio, the brand marketing arm of CBS News, were involved in the creation of this content.