A Vital Step for Ukraine’s Steel Industry
On the backdrop of Ukraine’s ongoing conflict and the unprecedented challenges faced by the country’s metallurgical industry, Metinvest Group has taken a pivotal step by importing coking coal from the United States. The bulk carrier Bison arrived in Ukraine on April 8, 2025, carrying 80,000 metric tons of American coking coal, sourced from the United Coal Company (UCC), a part of the Metinvest Group. This coal will play a crucial role in maintaining the operation of Metinvest’s steel plants in Zaporizhstal and Kametstal, two of the largest steel producers in Ukraine.
The Need for Coking Coal in Ukrainian Steel Production
Coking coal, a vital raw material used in the production of steel, is essential for metallurgical operations that power Ukraine’s industrial sector. Historically, Ukraine has been one of the largest producers of coking coal, with the Pokrovskaya Coal Group serving as the sole supplier for Metinvest’s steel plants. However, due to the ongoing war and the worsening security conditions, Metinvest had no choice but to suspend operations at the Pokrovskaya Coal Group. The coal production suspension, combined with electricity shortages and the threat to employee safety, led Metinvest to seek alternative sources for coking coal.
Shift to Alternative Coal Sources
Faced with the immediate need for a stable supply of coal, Metinvest turned to its subsidiary, United Coal Company (UCC), which operates in the Appalachian region of the United States. UCC, a significant producer of metallurgical coal, has been supplying Metinvest’s Ukrainian plants with much-needed coal. The company, which was acquired by Metinvest in 2009, has now become a crucial player in ensuring the continuation of steel production in Ukraine during these uncertain times.
Each month, Metinvest expects to receive 80,000 metric tons of coking coal from UCC, which will help cover the ongoing needs of Zaporizhstal and Kametstal, while supporting the Ukrainian economy. This will also contribute to job stability for thousands of workers at steel plants, logistics networks, railways, and contractors.
Impact on Ukraine’s Economy and Employment
Metinvest CEO Yuriy Ryzhenkov emphasized that this importation of American coking coal is not only critical for maintaining steel production but also for supporting tens of thousands of Ukrainian workers and contractors. Moreover, it plays an important role in sustaining Ukraine’s logistics sector and generating tax revenues for the Ukrainian budget. Despite the higher cost of imported coal, due to logistics, this decision is seen as an essential measure to ensure economic stability in the region.
The increase in coal imports from the USA will also significantly impact Ukrainian foreign exchange exports, which are vital to Ukraine's economic resilience during the ongoing conflict. By continuing steel production, Metinvest helps sustain Ukraine’s global trade presence, despite the restrictions imposed by the war.
Challenges of High-Cost Imported Coal
While the shift to imported coking coal is a necessary response to the crisis, it comes with its challenges. Imported coal from the USA is significantly more expensive than the local coking coal that was previously available from the Pokrovskaya Coal Group. The additional logistics costs of transporting coal across the Atlantic put a strain on Metinvest’s operational expenses. However, this was deemed a necessary investment to keep Ukrainian steel production afloat amidst a difficult and volatile economic environment.
The Strategic Importance of United Coal Company
The role of United Coal Company (UCC), based in Appalachia, is now more critical than ever. As a metallurgical coal producer, UCC ensures a steady supply of the necessary raw material for steel production. John Schroder, CEO of United Coal Company, stated, "We fully support Metinvest’s efforts to ensure economic stability and resilience in Ukraine by providing regular coal supplies. This will help maintain uninterrupted steel production and promote economic growth in Ukraine while strengthening our own position in the metallurgical coal industry."
Since its acquisition by Metinvest in 2009, UCC has increasingly become a key supplier for Metinvest’s operations in Ukraine. This partnership has proven instrumental in ensuring operational continuity at Zaporizhstal and Kametstal, despite the ongoing challenges faced by the Ukrainian steel industry.
Future Outlook: Monthly Shipments to Sustain Steel Production
Looking forward, Metinvest plans to continue receiving monthly shipments of 80,000 metric tons of American coking coal to meet the needs of its Ukrainian plants. This steady supply is expected to not only support steel production but also help maintain economic stability in Ukraine during these difficult times. The continued partnership with United Coal Company (UCC) will be pivotal in ensuring that Ukraine’s steel industry can weather the storm and contribute to the nation’s long-term recovery.
Strategic Collaboration for Steel Industry Resilience
This collaboration between Metinvest and United Coal Company (UCC) reflects the strategic importance of international partnerships in ensuring the resilience of Ukraine’s steel sector. In the face of external pressures, such as the ongoing war and the energy crisis, such partnerships help to stabilize production and safeguard critical industrial operations.
Key Takeaways:
• Metinvest Group imported 80,000 metric tons of coking coal from the USA for its Ukrainian steel plants in April 2025, marking the first shipment of the year.
• The coal was sourced from United Coal Company (UCC), a Metinvest-owned enterprise in the Appalachian region of the United States.
• The coal will support operations at Metinvest’s Zaporizhstal and Kametstal plants and help maintain steel production in Ukraine.
• The Pokrovskaya Coal Group, the only producer of coking coal in Ukraine, was forced to suspend operations due to security risks and electricity shortages caused by the war.
• Imported coal is more expensive than local coking coal, but the supply of American coking coal is seen as crucial to maintaining the steel industry in Ukraine.
• Metinvest will continue to receive 80,000 metric tons of coking coal from UCC each month, ensuring economic stability in the region and supporting thousands of jobs in Ukraine.
• This collaboration highlights the importance of international partnerships in ensuring the continuity of steel production and economic growth, despite external challenges.
By importing American coking coal, Metinvest is securing both the sustainability of its Ukrainian steel plants and providing significant support for Ukraine’s economic recovery amidst ongoing adversity.
