Zaporizhzhia Steel Posts 2.3 Billion Hryvnia Loss After Russian Strikes Halt Production
Zaporizhzhia Steel reported a net loss of 2.3 billion hryvnia in the first nine months of 2026, compared with a 1.9 billion hryvnia profit a year earlier. Revenue fell 8.3% to 49.1 billion hryvnia after Russian missile strikes damaged infrastructure and halted production at the company’s main industrial complex.
Key points
- Zaporizhzhia Steel posted a net loss of 2.3 billion hryvnia in January–September 2026, versus a 1.9 billion hryvnia profit in the same period of 2025.
- The company’s quarterly net loss for the third quarter of 2026 amounted to 1.2 billion hryvnia.
- Revenue from ordinary operations fell 8.3% year on year to 49.1 billion hryvnia.
- Production was fully halted after a strike on 11 August 2026 that killed seven workers and injured 21.
- Russian missiles struck the company on 27 August, 12 September and 17 September, damaging workshops, equipment, energy infrastructure and production facilities.
- Three major plants accounting for nearly 90% of Ukraine’s steel production were stopped by Russian strikes.
- Zaporizhzhia Steel’s undistributed profit stood at 29.8 billion hryvnia at the end of September 2026.
Why it matters
The losses show the substantial financial and operational damage inflicted on Ukraine’s steel industry by Russian attacks. The shutdown of three major plants responsible for nearly 90% of Ukrainian steel output has sharply reduced national production capacity. The decline in metallurgy’s contribution to GDP also illustrates the scale of damage to one of Ukraine’s key industrial sectors, while restrictions on steel imports to the European Union leave producers dependent on a narrow export market.
What happened
Zaporizhzhia Steel reported a net loss of 2.3 billion hryvnia for January–September 2026, compared with a net profit of 1.9 billion hryvnia in the same period of 2025. Revenue from ordinary operations decreased 8.3% to 49.1 billion hryvnia. The company recorded a net loss of 1.6 billion hryvnia in the first half of 2026, although revenue increased 7.6% to 38.7 billion hryvnia.
The company fully stopped production following a Russian ballistic strike on 11 August. Seven workers were killed and 21 were injured. Further attacks on 27 August, 12 September and 17 September damaged workshops, equipment, energy infrastructure and other industrial facilities. By the end of September, the company’s undistributed profit stood at 29.8 billion hryvnia, while the third quarter alone produced a net loss of 1.2 billion hryvnia.
How Ukrainian sources describe it
Ukrainian reporting places the financial reversal in the context of extensive losses to production infrastructure, the full shutdown of operations and the human toll of repeated strikes. The broader focus is on the consequences for Ukraine’s steel sector, GDP, logistics, exports and access to the European market.
Background
Zaporizhzhia Steel is a joint venture of Metinvest. System Capital Management, associated with Rinat Akhmetov, owns 71.24% of Metinvest, while Smart-Holding owns 23.76%. The company exports a significant share of its output through Danube ports, railways and road transport, but Russia’s aggression and restrictions on navigation in the Black Sea complicate deliveries.
In 2025, Zaporizhzhia Steel generated 72.1 billion hryvnia in revenue and net profit of 1.8 billion hryvnia. Steel production increased 11.1% to 3.212 million tonnes, pig iron output rose 15.2% to 2.795 million tonnes and rolled metal production increased 15% to 3.568 million tonnes. Its design capacities are 4 million tonnes of pig iron, 3.6 million tonnes of hot-rolled products and 1.2 million tonnes of cold-rolled products annually.
Regulatory risks in the European Union include the Carbon Border Adjustment Mechanism and new import quotas for certain steel products, which took effect on 1 July 2026. Zaporizhzhia Steel estimates that the effect of the carbon adjustment mechanism on semi-finished and finished steel will remain limited through 2030 because of free quotas in the EU Emissions Trading System. Before the full-scale invasion, metallurgy contributed up to 7% of Ukraine’s GDP.