DEVELOPMENT OF THE METALLURGICAL COMPLEX IN UKRAINE: CRISIS ADAPTATION AND THE "GREEN" RECOVERY STRATEGY
Abstract
The article is dedicated to the development of the metallurgical complex in Ukraine. The development of Ukraine's metallurgical industry is currently under the dominant influence of military-economic challenges, which have caused the loss of a significant part of the industry's production capacity and a logistics collapse. The Ukrainian metallurgical complex has historically been a cornerstone of the national economy, serving as a significant productive factor and a primary source of foreign exchange earnings, contributing up to 10.3% to Ukraine's GDP before the full-scale invasion.The article analyzes the current state of the industry (2024), noting signs of increasing production volumes compared to the crisis peak of 2022-2023, and identifies critical factors limiting further growth (personnel deficit, high logistics costs, the need to reorient sales markets). Currently, the development of metallurgical enterprises is taking place under conditions of an unprecedented crisis that requires a critical reevaluation of the functioning and development model. The future of Ukrainian metallurgy is substantiated to lie in green recovery with an emphasis on low-carbon technologies (EAF and H-DRI) and integration into European markets. This is the only strategy for ensuring long-term competitiveness, as the approaching implementation of the EU's Carbon Border Adjustment Mechanism (CBAM) poses a direct threat to Ukrainian exports. It is substantiated that the future of Ukrainian metallurgy lies in "green" recovery with an emphasis on low-carbon technologies and integration into European markets. This is the only strategy for ensuring long-term competitiveness in the context of international carbon regulation (CBAM - Carbon Border Adjustment Mechanism). Strategic priority should be given to Electric Arc Furnace (EAF) production and, in the long term, Hydrogen Metallurgy (H-DRI), which is a necessary condition for full compliance with CBAM requirements. The implementation of these projects requires attracting international ESG investments and creating a "green" financial corridor through state guarantees.
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