Business news from Ukraine

Business news from Ukraine

Ukraine has resumed oil transit via Druzhba pipeline following repairs

On Wednesday, after 12:00 p.m., Ukraine resumed oil transit via the Druzhba pipeline, according to a source close to the Ukrainian government who spoke to the online portal “Energoreforma.”

“At 12:35 p.m., oil transit was launched. Pumping has begun,” said the source speaking to “Energoreforma.”
He has not yet specified the volume of the transit.

As reported with reference to Slovak Economy Minister Denisa Saková, the resumption of supplies via the Druzhba pipeline to that country is expected on Thursday morning.
Hungary and Slovakia have not received Russian oil via the Druzhba pipeline since January 27 of this year due to damage to the pipeline caused by Russian shelling. Earlier, Hungarian Prime Minister Viktor Orbán stated that he would not lift his veto on the €90 billion EU loan for Ukraine until oil supplies are restored.

Péter Magyar, leader of the Tisza Party, which won the elections in Hungary, called on Ukrainian President Volodymyr Zelenskyy to ensure the Druzhba pipeline is restored as soon as possible.
The day before, the Kremlin stated that Russia is technically ready to resume transit through the Druzhba pipeline to Hungary.

Hungarian MOL announced on Wednesday, April 22, that the state-owned JSC “Ukrtransnafta,” responsible for operating the Ukrainian section of the Druzhba pipeline, had officially notified it of the completion of repair work on the Druzhba pipeline, as well as the termination of the force majeure circumstances that had been in effect since January 27, 2026.

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Ukrnafta Launches Digital System for Repair and Equipment Management

JSC “Ukrnafta” has implemented a corporate system for maintenance and repair (M&R) management and has begun putting it into practical use, according to a press release issued by the company on Tuesday.

“The goal is to create a unified electronic system for managing production assets: from equipment inventory to the analysis of maintenance and repair costs,” the press release stated.

The company explained that this essentially involves creating a “digital twin,” which allows for more accurate work planning, cost forecasting, and more efficient use of resources.

Since February 2026, the system has been in pilot operation at Ukrnafta’s regional divisions.

The project is being implemented based on the EAM (Enterprise Asset Management) approach. It encompasses 16 modules and 39 end-to-end business processes at Levels 1 and 2, ensuring management of the full lifecycle of production assets.

According to Ukrnafta, one of the project’s key priorities is the creation of a unified equipment database. Approximately 47,000 fixed assets have already been identified, of which 39,000 (over 80%) have been uploaded to the system. Approximately 8,000 repair objects have been created, over 150 types of equipment (more than 4,800 models) have been standardized, and more than 7,000 units of technical documentation have been uploaded.

A digital passport is created for each object, containing a complete history of repairs, defects, downtime, and relocations.

In addition, a maintenance and repair (M&R) standards database has been created: over 10,000 process charts contain per-operation labor costs, standards, a list of tools, and qualification requirements. All resources are integrated with the ERP system, enabling the automation of procurement requests and order generation.

The request management process (BPMN 2.0) has also been standardized—from defect recording to analysis of completed work and transfer of costs to the ERP. Approximately 500 typical defects have already been defined for the analysis of technical failures.

The system is integrated with the ERP, ensuring transparent financial accounting of repairs and cost control at every stage.

“We are systematically transitioning to a digital model of production asset management. This is not a standalone IT project, but a shift in the approach to production management. The system enables control at all stages—from equipment condition and work planning to costs and performance results,” said Ukrnafta CEO Bohdan Kukura, as quoted by the press service.

According to him, this results in increased process transparency, execution discipline, and the quality of management decisions.

In turn, as explained by Oleg Deberyna, head of the maintenance and repair system implementation department, Ukrnafta is effectively creating a unified digital asset management system that enables real-time monitoring of equipment status, work planning, and control over resources and costs.

“It is important that the system covers the entire cycle—from defect recording to failure root cause analysis and management decision-making. This significantly improves the efficiency and manageability of production processes,” he added.

As the company summarized, the implementation of the M&R system represents a shift in the approach to asset management: unified rules for working with equipment, standardization of processes, enhanced data management, and improved production reliability and safety.

The next stage is scaling the system to all of the company’s structural units, including internal services. Implementation will proceed in phases until mid-2027.

JSC “Ukrnafta” is Ukraine’s largest oil production company, carrying out a full cycle of activities in the field of production: exploration, oil and gas production, provision of oilfield services, as well as management of the largest network of gas stations in Ukraine, UKRNAFTA.

The company has over 1,106 oil wells and 131 gas wells on its balance sheet.

The shareholders of JSC “Ukrnafta” are NJSC “Naftogaz of Ukraine” and the Ministry of Defense of Ukraine. Since 2022, the company has been under state management and is implementing a large-scale business transformation.

UKRNAFTA is Ukraine’s largest network of gas stations, comprising nearly 700 stations and ranking among the top three in terms of fuel sales volume. The UKRNAFTA brand consolidates networks that previously operated under the Glusco, Shell, and U.Go brands.

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Zaporizhstal has invested 9.8 mln hryvnias in overhaul of its hot rolling mill

The Zaporizhzhia Metallurgical Plant “Zaporizhstal” has allocated 9.8 million UAH for the first phase of major repairs to “Slab 1150” and BTLS-1680 (continuous thin-sheet mill) in the hot rolling shop.

According to information released by the company on Thursday, stable rolling begins with properly functioning mills. Such repairs are carried out in stages throughout the year.

During the first stage, the “Slabbing 1150” received new spindles for the horizontal roll stands, the hydraulic system was repaired, the roll stand assemblies were restored, as well as certain sections of the roller tables and the transmission gearbox. On the BTLS-1680, the gearbox of stand No. 2 was repaired with the replacement of shaft assemblies, the drive line of one of the stands was restored, the gear roller was replaced, partial repairs were performed on the coil box, the coiler assemblies were repaired, and the chains of individual sections of the roller table were replaced.

It is noted that repair specialists from the plant’s departments, with the assistance of hydraulic specialists from Kametstal, completed the planned work ahead of schedule.

At this stage, UAH 9.8 million was allocated for the work; the next stage of the overhaul is scheduled for the fall.

Zaporizhstal is one of Ukraine’s largest industrial enterprises, whose products are in high demand among consumers both in the domestic market and in many countries around the world.

Zaporizhstal is a joint venture of the Metinvest Group, whose main shareholders are PJSC System Capital Management (71.24%) and Smart Steel Limited (23.76%). Metinvest Holding LLC is the management company of the Metinvest Group.

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Kametstal has begun repairing cast iron ladles to support blast furnace shop

The Kametstal plant, part of Metinvest’s mining and metallurgical group and established at the Dniprovsky Metallurgical Plant (Kamenskoye, Dnipropetrovsk Oblast), has mastered the technology for refurbishing cast iron ladles for metallurgical enterprises.

According to a press release, Kametstal’s metallurgical equipment repair shop has mastered a new area of expertise: the repair of pig iron ladles. This decision is aimed at supporting the smooth operation of the blast furnace shop and will help effectively restore critical equipment in-house.

It is noted that this year’s launch of new services at the Central Repair and Maintenance Unit began with mastering the repair of cast iron ladles. This is a strategic move: the stable operation of the blast furnace shop directly depends on the number of ladles “in service.” Since the need to repair such equipment has grown, while personnel resources remain limited, the repair team has taken proactive measures. The team’s initiative, supported by the plant’s management, will address the shortage of operational equipment and ensure the stability and productivity of pig iron production.

According to the repair technology, restoration work is carried out based on the results of defect detection, which is conducted jointly with specialists from the blast furnace shop. This allows for the precise identification of weak spots and the scope of necessary repairs.

The main repair operations include sealing cracks on the vertical walls of the ladles, as well as eliminating through-wall damage in the bottom section. Such burn-throughs occur due to the aggressive action of molten iron in areas where the refractory lining is most worn. Repair crews cut out the damaged sections and replace them with new steel “patches.” Special attention is paid to the upper part of the ladle—the neck—where worn-out metal structures are replaced. The entire process involves a full cycle of technical work: dismantling damaged elements, manufacturing replacement parts, and their subsequent installation.

Dmytro Lubenets, head of the metallurgical equipment repair shop, explained that they approach the repair of each pig iron ladle individually: from defect detection and drawing development to in-house manufacturing of parts.

“The first restored unit has already returned to the blast furnace shop; we are currently restoring the second one. Since the results of the pilot repair are quite satisfactory, we decided, together with the blast furnace operators, to systematize this process: ladles that go out of service will be sent directly to the Central Repair and Maintenance Unit. This will allow us to quickly return them to service after repair and, thus, maintain the stability of the production process. In these difficult wartime conditions, such cooperation is crucial—it is our way of overcoming staff shortages and maintaining production momentum,” said the shop foreman.

It should be noted that CMU specialists have mastered the technology for repairing slag ladles with significant wear and defects. Previously, such ladles were written off for disposal and replaced with expensive new ones. In 2025, 15 ladles were repaired and returned to the blast furnace shop for further operation.

“Kametstal” was established on the basis of PJSC “Dniprovsky Coke Chemical Plant” (DKHP) and PJSC “Dniprovsky Metallurgical Plant” (DMP).

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Northern GOK invested UAH 14 mln in repair of roasting machine

Northern Mining and Processing Plant (Northern Mining and Processing Plant, Kryvyi Rih, Dnipropetrovsk region), part of the Metinvest Group, has allocated UAH 14 million for the overhaul of the LURGI 552 A roasting machine.

According to the company, Northern GOK is renovating its processing complex equipment, with the combined mining and processing company continuing to modernize equipment and maintain capacity at its Kryvyi Rih enterprises.

The overhaul of the LURGI 552 A roasting machine has now been completed, and the unit in the No. 2 pellet production shop has returned to operation. It is specified that repair specialists repaired mechanical equipment in the pelletizing, firing, and screening sections and replaced conveyor belts. They also inspected the conveyor transport of the entire machine’s technological line. The metal structures of the kiln were repaired and the water cooling elements were replaced.

Partial replacement of damaged refractory blocks in the firing and cooling zones of the machine was carried out using high-quality materials that will reliably protect the metal structures of the machine from high temperatures in the future.

“The main task of the capital works is to maintain the productivity of the kiln and stabilize the quality characteristics of the finished products. The measures taken will ensure that the kiln operates at its design capacity of 465 tons of high-quality pellets per hour. In addition, the work carried out will reduce specific energy and resource consumption during production, increase the efficiency of the equipment, enhance safety for employees, and improve working conditions for the team,” explained Eduard Matitsyn, head of the No. 2 pellet production shop.

Northern GOK is part of the Metinvest Group, whose main shareholders are System Capital Management (SCM, Donetsk) (71.24%) and the Smart Holding group of companies (23.76%). Metinvest Holding LLC is the managing company of the Metinvest Group.

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Ukrzaliznytsia received 2,000 tons of rails from Japan for railway repairs

Ukrzaliznytsia received 2,000 tons of high-tech R-65 rails from Japanese manufacturer Nippon Steel, with another 1,000 tons expected to be delivered by the end of January, according to a press release from the Ministry of Community and Territorial Development on Thursday.

According to the release, this cooperation was made possible within the framework of the third phase of the emergency recovery program through the Japan International Cooperation Agency (JICA).

“This was the result of systematic interaction and successful agreements with Japanese partners on the part of the Ministry in early 2025. Ukraine currently does not have its own rail production, so attracting partner support is necessary and crucial for the functioning of the Ukrainian railway,” the ministry emphasized.

It is noted that the cooperation currently involves the transfer of 3,000 tons of rails for a total amount of about $4 million.

The ministry specified that railway workers use mobile complexes to weld rails directly on the tracks and thermally join joints, resulting in the creation of a so-called “velvet track” without joints, which increases its service life and ensures smooth train movement.

“We are sincerely grateful to the Government of Japan for its strategic support, which allows us not only to maintain the network, but also to carry out major repairs in accordance with the highest international standards, ensuring reliable connections even in the most difficult times,” said Marina Denisyuk, Deputy Minister of Community and Territorial Development, in a press release.

The Ministry of Development recalled that support from the Japanese government and JICA has continued since the beginning of the full-scale invasion by the Russian Federation. In particular, during this period, almost 25,000 tons of rails have been delivered, which has made it possible to renovate more than 193 km of tracks on strategic routes of the Lviv, South-Western, Dnipro, Southern, and Odesa railways.

In addition, railway workers also received 24 units of construction and loading/unloading equipment from Komatsu, Toyota, and Sonalika, 22 of which were track equipment, and the total cost of equipment and materials supplied during the first two phases of the program exceeded $42 million, the agency noted.

“The delivered equipment, namely wheel excavators, loaders, and bulldozers, has already worked more than 13,000 motor hours on emergency repair work,” the agency emphasized.

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