Since July 2025, ArcelorMittal Kryvyi Rih has been openly stating the devastating cumulative effect of rising utility costs. Back in the summer, we emphasized: the cost of electricity for industry in Ukraine had become the highest in Europe, reaching 135 USD per MWh, including transport and distribution. Even then, we warned that no energy-intensive industry can survive when electricity prices are three times higher than those in European countries.
I must state: since then, the situation has only worsened. Instead of support, we see new plans from the regulator. The NERC again plans to raise tariffs for 2026: for natural gas distribution — by up to 128%, and for electricity transmission — by up to 14.6%.
The situation is complicated by constant enemy attacks on energy infrastructure. Our plant operates under power capacity deficits. I am proud of our miners and steelworkers who adjust production in real-time based on electricity availability. We cope thanks to the steel character of the people of Kryvyi Rih. But there are things that cannot be overcome by spirit alone.
The biggest threat to our business remains the uncontrolled rise in electricity costs, which kills our competitiveness in global markets. When local generation is lacking due to shelling, we are forced to import power. In December, this led to a sad record: the price for our plant reached 220 USD per MWh. Such costs are unsustainable even in the short term.
Meanwhile, our colleagues in the EU act differently. In Germany, industrialists are pushing the government to introduce a fixed tariff for industry. It is expected that as early as the beginning of 2026, German plants will receive a tariff of 50 EUR per MWh. Compare this with our figures.
Our plant has remained loss-making since the start of the full-scale war. The planned increases in electricity and gas tariffs will mean over 490 million UAH in additional costs (excluding VAT) for us. The consequences could be fatal: we may have to suspend or even permanently stop the operation of some production units.
That is why we appeal to the NERC with a call not to raise tariffs.
To curb electricity costs, Ukrainian industry urgently needs support measures from the government — similar to those being implemented in Germany. We are not asking to reinvent the wheel. If European producers working in peaceful conditions demand immediate action from their governments, then the needs of Ukrainian metallurgy and mining, working during the war, must be taken into account as a priority.
