The announcement was made during the business forum "Italy Supports 'Made in Ukraine'," held in Rome on November 22, 2024. The forum, organized by Ukraine's Ministry of Economy with the support of Italy's Ministry of Enterprises and Production, was co-hosted by major Ukrainian companies DTEK and Metinvest, owned by oligarch Rinat Akhmetov.
Strengthening Metallurgical Cooperation
A key highlight of the forum was the collaboration between Ukraine and Italy in the metallurgical sector, one of the industries that tightly binds the two economies. Yulia Svyrydenko, Ukraine's First Deputy Prime Minister and Minister of Economy, emphasized the critical role of metallurgy in Ukraine's economy:
"Metallurgy was developing dynamically before the full-scale invasion and had perhaps the greatest impact on the economy of Ukraine, providing about 5.4% of the country's GDP. The war has seriously affected steel production, but the dedication and determination of Ukrainian metallurgists are contributing to the gradual restoration of production and an increase in exports. Ukraine has the largest iron ore reserves in Europe. We are able to completely replace Russia in the supply of this raw material, and in the future—also ferrous metals to the EU, thanks to the development of green metallurgy. Together we can help Ukraine realize its potential to support European strategic autonomy."
Metinvest's Green Steel Ambitions
Dmytro Nikolayenko, Commercial Director of Metinvest Group, outlined the company's commitment to advancing green steel production in Europe. He highlighted several key initiatives designed to modernize production facilities and enhance sustainability:
"Metinvest aims to lead Europe's transition to green steel production. Our main initiatives are plans to modernize the equipment of the Severny GOK to improve quality and productivity, as well as the construction of a DRI/HBI production facility with a total capacity of 7.5 million tons per year. We want to build a reliable steel bridge between the economies of Ukraine and the EU by integrating Ukrainian metallurgy into the European one."
Nikolayenko further detailed the ambitious goals of these projects:
"These initiatives are aimed at producing 6.8 million tons of green steel annually, which will make Metinvest a major player in the sustainable metallurgical production market in Europe and will allow the group's Ukrainian mining and quarrying plants in Kryvyi Rih to be 100% operational, creating new jobs."
Facilitating Investment and Development
The "Steel Bridges" initiative is designed to attract significant investments into Ukraine's metallurgical and critical materials sectors. By integrating Ukrainian metallurgy with European markets, the project aims to enhance competitiveness, ensure sustainable resource utilization, and promote environmental protection.
Key Objectives:
- Modernization of Equipment: Upgrading existing facilities to adopt advanced, eco-friendly technologies that increase productivity and reduce environmental impact.
- Expansion of Production Capacity: Establishing new production lines to meet the growing demand for green steel in Europe.
- Job Creation and Economic Growth: Boosting employment opportunities in Ukraine through the expansion of metallurgical operations and related industries.
- Sustainable Resource Management: Ensuring the responsible extraction and use of Ukraine's vast iron ore reserves to support long-term economic and environmental goals.
Government Support and International Collaboration
The Ukrainian government, in collaboration with Italian authorities, is committed to creating an enabling environment for these investments. The formation of the Grain Storage Register and the abolition of exporter verification processes are part of broader efforts to enhance transparency and efficiency in Ukraine's export sectors.
Future Prospects:
- Integration with EU Standards: Aligning Ukraine's metallurgical practices with European Union standards to facilitate smoother market access and regulatory compliance.
- Research and Innovation: Encouraging joint research initiatives between Ukrainian and Italian institutions to drive innovation in metallurgy and critical materials.
- Supply Chain Optimization: Strengthening supply chains to ensure the seamless flow of raw materials and finished products between Ukraine and Italy.
Conclusion
The "Steel Bridges" initiative symbolizes a robust partnership between Ukraine and Italy, leveraging Ukraine's rich metallurgical resources and Italy's industrial expertise to drive sustainable economic growth. By focusing on green metallurgy and strategic investments, both nations aim to create a resilient and competitive metallurgical sector that supports Ukraine's recovery and contributes to European strategic autonomy.
As Ukraine continues to navigate the challenges of post-conflict reconstruction, such collaborative efforts are crucial in rebuilding the nation's economic foundations and ensuring long-term prosperity. The commitment of both governments and leading industry players like Metinvest underscores the shared vision of a strong, sustainable, and integrated European economy.
