ArcelorMittal Kryvyi Rih, the largest steel mill in Ukraine, faces closure due to Europe’s highest electricity prices, warns its CFO Pavlo Zadorozhnyi. The firm has lost money for four straight years, with power costs hitting over EUR 94/MWh in May, far above France’s EUR 20.

Local electricity producer Energoatom’s monopoly and power grid operator Ukrenergo’s import restrictions block a competitive market. 

Unable to pass costs to consumers, the mill, which already idled a blast furnace in November 2024, risks collapse. This would endanger 18,000 jobs, Kryvyi Rih’s stability, and over $1 billion in annual foreign earnings. 

With 93% of EU steel made in cheaper-power countries, Ukrainian metallurgy, where electricity forms up to 60% of production costs, struggles to compete. The CFO urges government action to open markets and cut prices.