The Ukrainian Association of Ferroalloy and Other Electrometallurgical Products Manufacturers (UkrFA) appealed to the government over the critical situation facing the country’s electrometallurgical industry and the possibility of piloting state support mechanisms. The association reported serious problems at industry enterprises, including one member located in a combat zone.

UkrFA said the ferroalloy and electrometallurgical sector is a strategic part of Ukraine’s full-cycle economy and an important component of post-war recovery. The industry was affected by rising electricity tariffs, including transmission and distribution costs, the absence of preferential lending for companies operating in frontline regions, and a lack of compensation mechanisms for investments in alternative energy.

The situation worsened following a National Energy and Utilities Regulatory Commission resolution on January 16, 2026, which set a maximum electricity price of UAH 15,000/MWh from January 17, threatening a complete shutdown of enterprises. UkrFA noted that electricity costs accounted for 34% of production costs in 2023, 38% in 2024, and nearly 40% last year, undermining profitability and competitiveness.