In January-March this year, the mining and metallurgical group Metinvest, including associated companies and joint ventures, paid more than UAH 2.5 billion in taxes and fees to the budgets of all levels in Ukraine.
According to the company’s press release on Wednesday, Rinat Akhmetov’s Metinvest remains the backbone of the country’s economy amid a full-scale Russian invasion of Ukraine.
In January-March this year, Metinvest’s Ukrainian enterprises paid about UAH 725 million in unified social contributions, more than UAH 649 million in personal income tax and about UAH 442 million in income tax.
Land rent – more than UAH 288 mln, subsoil use fee – about UAH 174 mln and ecological tax – almost UAH 136 mln, which are the most significant sources of the state and local budgets of Ukraine.
Director General of “Metinvest” Yuriy Ryzhenkov said that it is not in the tradition of Ukrainians to give up.
“Therefore, the enterprises of Metinvest continue to fill the treasury of Ukraine in extremely difficult military conditions, under the constant threat of enemy shelling. We hold the line on the economic direction, despite the loss of control over the Mariupol plants, the blockade of the ports and other negative factors for the industry. After all, we understand that business must work to win and then to rebuild Ukraine. All as one, because we have one country,” the top manager was quoted by the press service.
As it was reported, taking into account the associated companies and joint ventures, in 2022, Metinvest transferred 20.5 billion UAH of taxes and duties to the budgets of all levels in Ukraine.
“Metinvest is a vertically integrated group of mining and metallurgical companies. The enterprises of the group are mainly located in Donetsk, Luhansk, Zaporizhzhia and Dnipropetrovsk regions.
The major shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%) that manage it jointly.
Metinvest Holding LLC is the management company of Metinvest Group.
Mining and Metallurgical Group Metinvest intends to participate in the post-war reconstruction of Ukraine together with the Ukrainian government and Italian business, the company’s CEO Yuri Ryzhenkov said at the April 26 conference on the reconstruction of Ukraine held in Rome with the participation of Ukrainian Prime Minister Denis Shmygal and Italian Council of Ministers Chairman Giorgi Meloni.
According to a press release Friday, during the discussion, Denis Shmygal noted that Ukraine looks forward to Italy’s participation in joint infrastructure, logistics, manufacturing and commercial projects to restore Ukraine from the effects of the war.
“The hundreds of Italian and Ukrainian companies, businesses, associations that are here today are a signal that we have a common interest in the reconstruction projects that, in particular, the president of Ukraine described today. We invite Italian companies to invest in Ukraine and implement reconstruction projects today”, – he said.
The Prime Minister added that Ukraine counts on 1 billion euros from the Italian agency SACE to urgently finance the reconstruction of energy, housing, humanitarian demining, critical and social infrastructure, support for small and medium businesses.
In his turn Yuriy Ryzhenkov said at the specialized metallurgical panel during the conference that Metinvest as a potential steel supplier considers the issues of strategic partnership with Italian companies in Ukraine. In particular, we are talking about cooperation in transport infrastructure (roads, bridges, seaports), energy infrastructure (production and supply of energy), social infrastructure (schools, hospitals, other public institutions).
“Ukraine has lost production of rails and slabs because of the destroyed factories in Mariupol. On the one hand, this is a problem because Italy was a major consumer of Ukrainian slabs. But on the other hand, it is an opportunity for Ukraine’s recovery, as these are the most obvious areas that require investment. One of the first drafts of Ukraine recovery plan, published last year, already contains initiatives in which Italian business may take part. And this is where Metinvest is ready to cooperate with it to implement the plan for Ukraine’s recovery,” the top manager, as quoted by the press service, stressed.
Moreover, Metinvest, in partnership with Italian companies, seeks to improve the technological level of metallurgical production in Ukraine and become part of the green transformation of the European industry. In particular, the matter concerns expansion of DR-okatysh production, the basic raw material for more environmentally friendly metallurgical production with the usage of electric arc furnaces. “Metinvest is considering a partnership with DRI d’Italia, a joint project of InvItalia and CEIP Scarl, a consortium of electric arc furnace steel producers.
However participation in these projects will require additional investments in production capacities. For example, modernization of some of the enterprises and construction of new facilities will require about $6 billion according to the National Recovery Plan developed and presented in mid-2022. Promising investment projects include modernization of iron ore processing technology and construction of DR-forming lines, construction of electric arc furnace facilities and new rolling mills.
In his speech at the conference, Ukrainian President Vladimir Zelensky emphasized that Ukraine has significant potential for the development of green metallurgy. “From iron ore to lithium and other resources that are in maximum demand by the world – all of it is Ukraine. From natural gas to titanium… We can give – and we will! – all that to global markets. In many ways we can replace companies from Russia – those who have chosen to work for war rather than for global development,” he said.
“Metinvest is a vertically integrated group of mining and metallurgical enterprises. Its enterprises are located in Ukraine – in Donetsk, Lugansk, Zaporozhye and Dnipropetrovsk regions, as well as in European countries.
The major shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%) that manage it together.
Metinvest Holding LLC is the management company of Metinvest group.
Metinvest’s network of steel service centers in Ukraine, Metinvest-SMC, has donated steel to the Pivden Operational Command as part of Rinat Akhmetov’s Steel Front initiative to manufacture mobile buggy vehicles, which are in high demand at the frontline.
According to the press release, a buggy is a small light vehicle with high cross-country ability with open wheels, used for off-road driving. There are no such vehicles in service in Ukraine. Activists, volunteers and representatives of some military associations manufacture and supply them.
It is noted that buggies are compact, fast, maneuverable, have high cross-country ability and are easily camouflaged. They are relatively inexpensive and are indispensable in reconnaissance missions, able to attack in small groups and make quick raids behind enemy lines. That is why the buggy is a good alternative to a conventional wheeled vehicle on the front lines.
Metinvest-SMC was recently approached by representatives of the UC Pivden: the military needed equipment for the production of buggies. At their request the company provided 3.8 tons of rolled metal – angles, sheets, and tubes – for the manufacture of 10 front minivans, free of charge.
According to the press service, everyone can also help the defenders of Ukraine: if there are any unused old Zhiguli 01-07 cars, they can be transferred to the AFU (Operational Command South in FB or e-mail coll-centr_ok_pivden@post.mil.gov.ua).
It is recalled that Metinvest group has already allocated 1.6 billion UAH for the projects of Rinat Akhmetov’s Steel Front military initiative.
“Metinvest” is a vertically integrated mining group of companies. Its main shareholders are SCM Group (71.24%) and Smart Holding (23.76%) that jointly manage the company.
Metinvest Holding LLC is the managing company of Metinvest group.
Metinvest in 2022 reduced steel production by 69% year-on-year to 2.918 mln t, parent company Metinvest B.V. said in a press release.
According to it, the production of pig iron declined by 72% to 2.743 million tons, coke – by 64% to 1.653 million tons, including merchant coke – by 49% to 811 thousand tons.
At the same time, it is specified that in connection with the beginning of a large-scale military aggression of the Russian Federation against Ukraine, since 24 February 2022, Metinvest decided to suspend the production activities of a number of its enterprises in Mariupol, Avdiivka and Zaporizhia, including Azovstal, Illich Iron and Steel, Avdiivka Coke and Zaporizka Coke. Later, the group’s Zaporizhia companies resumed production. However, the company’s enterprises in Mariupol and Avdeevka suffered as a result of hostilities, while Mariupol is currently temporarily occupied.
It is also noted that Ukrainian enterprises of the group, except those located in Mariupol and Avdeevka, continue to operate at different levels of utilization, taking into account security factors, availability of electricity supply, as well as logistical and economic factors.
In 2022, production of commercial semi-finished products decreased by 70% to 1.022 mln tons, due to a significant decrease in the production of liquid pig iron. This was partially offset by the consolidation of commercial billet production volumes at Kametstal’s facilities.
In 2022, production of finished products decreased by 62% to 2.777 million tonnes. The production of flat products decreased by 4.247 million tonnes to 1.731 million tonnes due to the stoppage at the Mariupol mills, and the lack of a stable supply of slabs for Italian rolling mills in the first half of the reporting year. Production of long products decreased by 71,000 tonnes, to 1.018 million tonnes, due to stoppages at Azovstal from the end of February 2022 and lower production at Promet Steel due to irregular intragroup supplies of billets.
This, in turn, was partially offset by consolidation of production volumes at Kametstal’s facilities. At the same time, production of rails and pipes decreased by 38 and 100 thousand tons to 10 and 18 thousand tons, respectively, as the products were produced at Mariupol.
In 2022, coke output decreased by 64% to 1.653 mln tons.
“Last year, Metinvest also reduced the production of total iron ore concentrate (iron ore concentrate) by 66% year-on-year to 10.712 million tons, the output of marketable iron ore products decreased by 55% to 7.903 million tons, including the volume of marketable concentrate – by 60% to 4.718 million tons, and the volume of marketable pellets – by 45% to 3.185 million tons.
In 2022, the production of coal concentrate by the group decreased by 11% to 4.959 million tons, mainly due to the lack of qualified personnel at its coal assets and deteriorating geological conditions at United Coal Company (USA) mines.
As reported, Metinvest in 2021 increased the steel output by 15% compared to 2020 – up to 9.533 million tons, iron – also by 15%, to 9.709 million tons, but reduced the total production of coke by 5% to 4.551 million tons. In 2021, the Group increased the total production of iron ore concentrate by 3% to 31.341 million tons, the production of pellets by 18% to 5.811 million tons and the total production of coking coal concentrate by 92% to 5.542 million tons.
“Metinvest consists of mining and metallurgical enterprises located in Ukraine, Europe and the USA.
The major shareholders of Metinvest are SCM Group (71.24%) and Smart Holding (23.76%) that jointly manage the company.
Metinvest Holding LLC is the management company of Metinvest group.
Metinvest Mining and Metallurgical Group, within the framework of Rinat Akhmetov’s Steel Front militarized initiative, handed over 50 drones worth UAH 6 million and 200 sets of winter clothing to the Main Directorate of Intelligence.
According to the company’s press release, DJI Mavic 3 drones have already been sent to the front. The press service explains that the military use the civilian version of drones DJI Mavic 3 in combat conditions as an inspector (for detection and correction of fire), as well as a combat unit (dropping of ammunition, such as shrapnel VOG-25) to defeat the enemy.
In total, the Metinvest Group has handed over more than 1,200 drones to various units of the country’s defense forces since February 24, 2022.
In addition to drones, the defenders received 100 sets of winter uniforms, 100 sets of thermal clothing and tactical shoes.
“Metinvest is a vertically integrated group of mining and metallurgical enterprises. Its enterprises are located in Ukraine – in Donetsk, Lugansk, Zaporozhye and Dnepropetrovsk regions, as well as in European countries.
The major shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%) that manage it jointly.
Metinvest Holding LLC is the management company of Metinvest group.
Metinvest Mining and Metallurgical Group, as part of Rinat Akhmetov’s Steel Front militarized initiative, handed over four modern drones to scouts in the Avdiivka direction, continuing to support Ukraine’s defenders in the fight against the Russian aggressor.
The company’s press release specifies that the tactical equipment provided protects operators’ lives from enemy attacks, as specialists can control the drone from long distances without exposing themselves to direct danger.
“They (drones – IF) are effective for suppressing the enemy, artillery work and at night for infantry, because lately the enemy is very much making installation for night maneuvers, for night advancement,” explains Colonel Alexander Danilchenko of the AFU, quoted by the press service, noting the productive assistance of Metinvest, which it began to provide since March last year.
At the same time, it is noted that for eleven months Avdeevka has been subjected to hostile shelling. Stubborn battles are going on nearby every day, as the enemy is trying to expand the borders of the occupation. However, the AFU and defense forces are heroically defending the city and neighboring frontline territories.
“In Avdeevka we have not conceded a single step, even in some positions we have advanced,” Danilchenko stressed.
The press release reminds that Metinvest Group is one of the first companies in Ukraine to start supplying drones to the AFU.
“The company systematically supplies our military with body armor and helmets, burners and fuel, helps to equip defensive structures and transfers mobile shelters made of strong steel. Today we are making another contribution to the forthcoming common victory over the invaders. I am sure that the “birds” will be useful and will help our defenders to repulse the enemy”, noted Acting General Director of Avdiivka KHP Yuriy Ktsinenko.
It is also reported that Metinvest organizes the search and delivery of important tactical equipment and machinery to Ukraine in order to strengthen the army’s defense capabilities in different parts of the front. The company has already transferred approximately 1,700 thermal imaging cameras, 1,000 drones and quadcopters, and 312 vehicles, including ambulances, to the fighters. And 1 million liters of fuel have been provided to refuel the vehicles.
“Metinvest is a vertically integrated group of mining and metallurgical enterprises. Its enterprises are located in Ukraine – in Donetsk, Lugansk, Zaporizhzhia and Dnipropetrovsk regions, as well as in European countries.
The major shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%) that manage it jointly.
Metinvest Holding LLC is the management company of Metinvest group.
