THE ROLE OF STATE INDUSTRIAL AND EXPORT POLICY IN THE RECOVERY AND MODERNIZATION OF UKRAINE’S METALLURGICAL INDUSTRY

Abstract

The article examines the role of state industrial and export policy in the recovery and modernization of Ukraine’s metallurgical industry after 2022. The relevance of the topic is determined by the strategic importance of metallurgy for the national economy and by the unprecedented losses caused by the full-scale war, including the destruction of major production facilities, disruption of export logistics, narrowing of domestic demand, and growing pressure on the industry’s resource and energy base. Under these conditions, the restoration of metallurgical production should be considered not only as a sectoral task, but also as a prerequisite for broader economic recovery, industrial resilience, and Ukraine’s integration into European value chains. The purpose of the study is to substantiate the priority directions of state industrial and export policy aimed at rebuilding production capacity, preserving external markets, and ensuring the technological renewal of the industry on innovative and low-carbon principles. The methodological basis of the research includes structural and comparative analysis, synthesis of analytical materials, examination of sectoral statistics, and generalization of policy approaches to industrial support and export promotion. The paper identifies the key wartime and post-war challenges for Ukrainian metallurgy, including the loss of part of production capacity, severe export contraction, infrastructure bottlenecks, raw material shortages, energy insecurity, and increasing exposure to new environmental and trade barriers in foreign markets. It is argued that effective recovery requires a coordinated policy framework combining investment support, infrastructure rehabilitation, export facilitation, market diversification, and incentives for technological modernization. Particular attention is paid to the prospects of transition from obsolete carbon-intensive production models to electric arc furnace technologies, direct reduced iron production, and broader decarbonization measures, which are essential for improving competitiveness and maintaining long-term access to the European Union market in the context of carbon border regulation. The practical significance of the article lies in the proposed policy priorities, which may be used in designing national industrial recovery programs, investment support mechanisms, export promotion measures, and strategic decisions related to the green transformation of Ukraine’s metallurgical sector.