Kryvyi Rih is switching to an austerity mode due to problems in the industrial sector
Kryvyi Rih will implement budget cuts and suspend some development projects due to a decline in tax revenues from industrial enterprises. This decision is linked to a significant drop in municipal budget revenues amid the shutdown of the city’s industrial sector.
According to him, ArcelorMittal Kryvyi Rih, the Ingulets and Pivdenny Mining and Processing Plants, and the Kryvyi Rih Iron Ore Plant are currently not operating. Other large enterprises in the city are operating at no more than a quarter of their pre-war capacity.
Vilkul cited Russian attacks and problems with shipping products through ports as the reasons for the shutdowns. Along with these industrial giants, numerous contractors are also idle.
Due to a decline in tax revenues, the city will halt the implementation of a number of important projects in 2026. At the same time, the authorities promise to maintain the operation of critical infrastructure.
“But this isn’t about development. It’s about survival. Right now, we have to survive,” he stated.
Vilkul described the budget forecast for Kryvyi Rih for 2027 as “very poor.” Schools, kindergartens, hospitals, and water and heat supply will remain priorities.
This was stated by Oleksandr Vilkul, chairman of the Kryvyi Rih Defense Council.
ArcelorMittal, Ukraine’s largest steel mill, has halted operations due to Russian attacks.
From January through August 2026, Ukrainian steelmakers reduced exports of commercial pig iron by 16.4% compared to the same period last year, down to 1.03 million metric tons. In August, no pig iron was exported due to the blockade of ports.
As a reminder, Russia is destroying Ukraine’s steel industry, eliminating a competitor in the EU market.
Ukraine’s largest steel mill partially halted operations following a Russian strike.
The combination of Russian strikes on steel mills, problems with maritime logistics, rising transportation costs, and new EU restrictions could lead to a 30–40% reduction in steel production in Ukraine, and iron ore production by approximately 40%.
