Ukraine is gradually starting to see a cautious optimism in the situation regarding seaborne exports of iron ore, following the recent release of the vessels from the ports of Chornomorsk and Pivdennyi, according to Yuri Ryzhenkov, CEO of Metinvest group. The group CEO underlined that the Ukrainian authorities have been working on the issue for over eight months, but noted that, in order for the route to be sustainable and full-fledged, additional efforts have to be made. “We all need to work more so that this route becomes the reliable one and that we and the agricultural sector can count on it,” he said.
According to Mr. Ryzhenkov, the restoration of exports via sea is particularly important for Metinvest’s mining segment, since its utilization has had to be lower due to impossibility of iron ore exports. Prior to Russia’s invasion of Ukraine (February 24, 2022), exports to Europe stood at less than 10 percent, while most volumes went to China through the major sea ports, Odessa, Chornomorsk and Pivdennyi, the official statement reads.
“Today, our mining sector is 35-40 percent utilized, while the assets of our colleagues are working at even lower rates. And there is no other way other than to open the ports of Great Odessa [for sustainable exports],” the CEO said.
The currently operational mills of the group, Zaporizhstal and Kametstal, are working at 65-75 percent capacity, versus a required 80 percent capacity utilization needed for normal working of the assets. The company re-oriented all exports to the European markets.
Currently, there is a temporary corridor open for civilian ships in the Black Sea. It has already handled 10 vessels carrying agricultural and metallurgical products.