Kryvyi Rih goes into "survival mode": key enterprises have halted due to attacks by the Russian Federation

Kryvyi Rih is shifting into a so-called “survival mode” due to the shutdown of key enterprises of the mining and metallurgical complex. Because of a sharp decline in industrial production and, accordingly, tax revenues, the city budget will be revised, and some planned development projects will be suspended. This was stated by the head of the Defense Council Oleksandr Vilkul.

According to Oleksandr Vilkul, in recent weeks “ArcelorMittal Kryvyi Rih” has suffered four massive missile attacks. As a result of these strikes, five employees of the enterprise were killed and 17 people were wounded. After the damage, the plant announced the suspension of operations.

The problems, he said, have affected a significant portion of the city’s mining and metallurgical complex. “ArcelorMittal Kryvyi Rih”, the Inhuletskyi and Pivdennyi ore beneficiation plants, as well as the Kryvyi Rih Iron Ore Plant have stopped. Other large enterprises are operating at no more than a quarter of pre-war capacity.

The cause of this industrial condition is attributed not only to Russian attacks. An additional problem has been logistical difficulties and the inability to properly ship products through the ports.

The halt of industrial enterprises directly affects the city budget. As Oleksandr Vilkul noted, reduced production means loss of jobs, wages, and tax revenues to the community budget. Because of this, Kryvyi Rih will implement a municipal budget sequestration and will forgo the implementation of some planned development projects. Funds are planned to be directed primarily to meeting the city’s basic needs.

At the same time, city authorities say they intend to maintain funding for schools, kindergartens, hospitals, water and heat supply systems, social programs, and assistance to the Armed Forces of Ukraine. According to Oleksandr Vilkul, the outlook for the city budget next year also remains uncertain.

Separately, the city is trying to help employ people who may lose their jobs due to stoppages or production cuts. At municipal enterprises, in particular at “Vodokanal” and “Teplomerezha”, there are currently about 1,000 vacancies. According to figures cited by Oleksandr Vilkul, since the beginning of the year about 3,500 people have already found work through the Employment Center. About 500 vacancies are available there daily.

At the same time, the city continues grant support programs for businesses, vocational training, and attracting new production facilities. According to the head of the Defense Council, these programs have already created about 1,000 jobs, and vocational education institutions have opened 13 training and practical centers.

Thus, the industrial crisis in Kryvyi Rih is forcing the city to postpone some development plans and concentrate budgetary resources on supporting critically important sectors.

“But it’s not about development. It’s about survival. Right now we must survive,” – so described the situation Oleksandr Vilkul himself.

Previously we wrote:

• ArcelorMittal will not be able to safely resume operations at its Kryvyi Rih plant after missile strikes
• Three of Ukraine’s largest metallurgical companies halted steel production
• Almost 50 million tons of red sludge near Mykolaiv: what will happen to the MGZ’s waste and can it really be recycled
• The MGZ shutdown, million-dollar debts to shipbuilders, and the death of a cadet: what marked September 26
• Drones reached Novy Urengoy: a strategic plant was hit