If Russians occupy Pokrovsk, it will hit Ukraine's economy – CEO of Ukraine's largest mining company

Pokrovsk Coal Group (PCG), the largest coking coal producer in Ukraine, supplies production facilities belonging to Metinvest, an international steel and mining group. The company has a contingency plan in place should the city of Pokrovsk and the surrounding area fall to Russian forces. Source: Metinvest CEO Yurii Ryzhenkov in an interview with Forbes Ukraine

Details: The Metinvest CEO emphasised that even if Pokrovsk is captured by Russia, production will continue. The company can source coal from DTEK, Ukraine's largest private energy investor, and from Poland and Metinvest's own mines in the US.

In addition, the company can import coking coal. However, Ryzhenkov noted that losing the city and the PCG would not go unnoticed and would deal a blow to the Ukrainian economy.

If coal has to be imported, production costs will rise. This could lead to a reduction in production in some markets and a decline in metallurgical production and output of mining and processing plants. The Ukrainian government will lose a significant portion of tax revenues.

Metinvest's CEO emphasised that the economy had already endured severe losses following the fall of the city of Mariupol to Russian forces. However, financial support from partners provided temporary relief to help cover these setbacks.

However, Ryzhenkov warned that the impact of these losses would become much more apparent after the war when Ukraine would need to rely on its own resources. Background: Metinvest plans to start construction of a steel plant in Piombino, Italy, late this year or early 2025.

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