Russia is looting $600m (£500m) worth of steel from plants and ports in Ukraine, according to the boss of Ukraine’s largest steel firm, Metinvest.

The firm owns the Azovstal plant which became the last holdout of Ukrainian soldiers and civilians during the devastation of the city of Mariupol. Chief Executive, Yuriy Ryzhenkov, said the steel is being transferred to Russia and sold, some of which were for customers in the UK. However, the Kremlin has not commented.

Metinvest is headquartered in Mariupol, a centre for trade and manufacturing, which after almost three months of relentless assault, fell to Russia in May 2022. Mr. Ryzhenkov revealed that 300 employees and 200 employees’ relatives were killed in the assault on the Azovstal plant, which together with its sister plant, Ilyich, accounted for 40% of all Ukraine steel production.

‘Stealing from the Europeans’

Thousands of tonnes of steel had been paid for by European customers, including some from the UK. He also disclosed that public sources and the company’s own informants reported that the steel is being transferred to Russia and sold in internal markets or to countries in Africa and Asia.

“What they’re doing is basically looting. They’re stealing not only our products, but also some of those products already belong to the European customers. So basically, they’re not only stealing from us, they’re stealing from the Europeans as well.”
Chief Executive of Metinvest, Yuriy Ryzhenkov

He said the company was documenting as much of the theft as possible and was preparing to take future legal action. “At some point in time, the Russians will be facing not only the international courts but also the criminal courts. And we will be going after them with anything we have,” Ryzhenkov further added.

Avoz Plant — The Azovstal steel mill was virtually destroyed in the siege

Meanwhile, report indicated that the Russian Ministry of Defence has refused to comment on the accusations made by the Ukrainian authorities. Professor Marko Milanovich, an expert in international law at the University of Reading, intimated that there are a number of options to pursue a case, but prospects for success are less certain.

“Whichever legal options Metinvest chooses, it’s a very difficult process and whilst looting is unfortunately quite common in conflict, suing the looting state and obtaining compensation is very, very rare indeed. However, they might want symbolic satisfaction more than the money, and labelling Russia as a lawbreaker would be a big deal.”
Professor Marko Milanovich, an expert in international law

Contributing to war effort

Last month (June 2022), a reality check team based in the UK tracked where Russia is taking grain stolen from Ukraine, following mounting evidence that Russian forces in occupied areas have been stealing produce from local farmers and shipping it out of the country.

Like many Ukrainian companies, Metinvest has become a part-military, part-humanitarian organisation. Mr. Ryzhenkov said his steel workers became as important as soldiers to the Ukrainian war effort.

“Our company is making bulletproof vests, we provide steel for underground bunkers, we provide steel for armoured vehicles. That’s why the people working in the steel mills are as important to Ukrainian victory as the fighters on the frontline.”
Chief Executive of Metinvest, Yuriy Ryzhenkov

Although the Azovstal plant is virtually destroyed in the Russian siege, Chief Executive of Metinvest, Yuriy Ryzhenkov said he is confident the day would come when it would be a Ukrainian-owned facility again.

“I’m positive. The way I see it Russia has already lost this war and it’s just a matter of time when they realise it. The Russians don’t need Mariupol, they don’t need Donbas. They either need all of Ukraine or nothing, which means that even if they stop now, Ukraine will take it back. It’s just a matter of time.”
Chief Executive of Metinvest, Yuriy Ryzhenkov