Finance
Steelmaker ArcelorMittal to close more Ukraine units
Published by Global Banking & Finance Review®
Posted on March 16, 2026
2 min readLast updated: March 16, 2026
Quick Summary
ArcelorMittal Kryvyi Rih will halt two more rolling mills amid soaring electricity costs from Russian strikes and EU’s CBAM, with potential job losses totaling up to 3,400.
ArcelorMittal to Shut More Ukrainian Mills Due to Energy Crisis, EU Rules
ArcelorMittal Kryvyi Rih Announces Further Closures Amid Energy and Regulatory Challenges
Impact of Russian Strikes on Ukraine's Energy Infrastructure
KYIV, March 16 (Reuters) - Ukraine's major steelmaker ArcelorMittal Kryvyi Rih will close two rolling mills, it said on Monday, citing the energy crisis caused by Russian strikes and the cost of European Union environmental requirements.
It did not give a timeframe for the closures that are in addition to closures announced last month by the ArcelorMittal SA subsidiary. It said then it would halt its Casting and Mechanical Plant, one of the country's largest enterprises, and its Blooming shop, also in Ukraine.
Power Supply Disruptions and Increased Imports
Russian strikes have targeted both power plants and substations, forcing Kyiv to cut power supplies to businesses and increase imports from the EU.
European Union Environmental Regulations and Their Effects
Introduction of the Carbon Border Adjustment Mechanism (CBAM)
ArcelorMittal also cited the EU decision to introduce the Carbon Border Adjustment Mechanism from January without any exceptions or any transition period for Ukrainian producers.
Purpose and Implications of CBAM
The CBAM is the EU's tool to put a fair price on carbon emitted during the production of carbon-intensive goods entering the bloc.
Company Response and Future Plans
Crisis Measures and Operational Adjustments
"As a reaction to adverse economic conditions in wartime Ukraine, including soaring electricity costs and CBAM, ArcelorMittal Kryvyi Rih was forced to take a number of crisis measures aimed at achieving financial viability and increasing operational efficiency of the company," it said in a statement.
Consolidation and Job Cuts
It said the company will consolidate rolling operations across a smaller number of mills and that the cumulative number of job cuts may reach 3,400.
Reporting Credits
(Reporting by Pavel Polityuk; editing by Barbara Lewis)
Key Takeaways
- •The rolling mills closure adds to prior shutdowns of the Casting and Mechanical Plant and the Blooming shop already announced by the company.
- •Energy disruptions from Russian strikes have tripled Ukrainian electricity prices, making operations unsustainable.
- •EU’s Carbon Border Adjustment Mechanism (CBAM) implemented on Jan 1 with no transitional measures has raised costs by ~$60–90/t, slashing competitiveness in EU markets.
Frequently Asked Questions about Steelmaker ArcelorMittal to close more Ukraine units
1Why is ArcelorMittal Kryvyi Rih closing more units in Ukraine?
The closures are due to the energy crisis caused by Russian strikes and the cost of complying with European Union environmental requirements.
2How many mills and plants is ArcelorMittal closing in Ukraine?
The company announced the closure of two rolling mills, in addition to halting the Casting and Mechanical Plant and Blooming shop last month.
3What is the Carbon Border Adjustment Mechanism (CBAM)?
CBAM is an EU measure to impose a carbon price on imports of carbon-intensive goods, affecting Ukrainian steelmakers without transition exceptions.
4How many job cuts may result from ArcelorMittal's actions?
The cumulative number of job cuts at ArcelorMittal Kryvyi Rih may reach 3,400.
5How has the energy crisis affected ArcelorMittal's operations?
Russian strikes on energy infrastructure forced Kyiv to cut power supplies, leading to higher costs and crisis measures by ArcelorMittal.
