Occupiers Brought to Mariupol What Russia Have the Most: Decline and Destitution

by Olha Povaliaieva
Friday, April 22, 2022
Occupiers Brought to Mariupol What Russia Have the Most: Decline and Destitution

Stopping 2 of 7 plants in Mariupol, Ukraine's largest industrial city, reduce Ukraine's GDP by 4%

On April 22, Ukrainian economist Oleksii Bilyaze announced his calculations regarding the losses of Ukraine against the backdrop of the shutdown of the two largest plants in Mariupol: the Mariupol metallurgical plant named after Ilyich and Azovstal. 

“The annual decline in steel production by 8.2 million tons due to the shutdown of Azovstal and MMPI at prices of $600-1.200 per ton will lead to a decrease in exports by $5-10 billion a year. In 2020 alone, Azovstal created 0.19% of GDP and contributed to the creation of another 1.02%, while IMKI created 0.24% and contributed to the creation of another 1.60%. At the same time, 2020 is called a bad year for the domestic economy (the COVID-19 pandemic) and metallurgy (low prices and a high hryvnia exchange rate). In 2021, the following level of contribution of Azovstal and MMPI to Ukraine's GDP was predicted: direct — 0.3% and 0.5%, respectively, indirect — 1.25% and 2%,” calculated Oleksii Bilyaze.

Thus, the shutdown of Azovstal and the Ilyich plant is equal to the loss of about 4% of Ukraine's GDP.

We want to note that these are estimates for only two plants, and there are 7 of them in Mariupol. And all of them stopped because of the war. Also, in the huge Mariupol, before the arrival of Russia, other areas of production were developed:

  • Food industry сonfectionery, сannery, and food factory, 5 bakeries, cold storage, 2 milk mills, meat processing plants, liquor distillery, and brewery;
  • Light industry clothing and hosiery factories, Mariupolsetesnast plant, Mariupol factory Souvenir;
  • Building materials industry concrete plant Azovzhelezobeton, 2 brick factories, a factory of reinforced concrete products;
  • Chemical industry plant of insulating materials, plant Khimplast, and Markograph.
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