ArcelorMittal had announced its decision to idle its steelmaking operations in Kryvyi Rih in Ukraine on 3 March 2022 in order to ensure the safety and security of its employees and assets. ArcelorMittal has been evaluating the situation on a daily basis and production had previously been reduced with the plant operating at a technical minimum, approximately one-third of its normal production levels. The process to idle all blast furnaces commenced on the same day. ArcelorMittal in Annual report said “The Company cannot predict duration of the idling as it will depend on the remaining course of the conflict and the establishment of safe and stable operating and logistical conditions thereafter, as well as potential repairs of any damages sustained. More generally the conflict between Russia and Ukraine could have a material adverse effect on the overall macroeconomic environment, potentially affecting steel and iron ore demand and prices as well as increasing energy costs.”ArcelorMittal also said “The imposition of extensive sanctions on Russia by the EU, US, UK and other countries affects the Company's sourcing of raw materials and also, potentially, the markets for sales by the Group's other operations in the CIS with the Group recording USD 1.6 billion of sales to customers located in Russia in 2021.”ArcelorMittal added “More generally the conflict could have a material adverse effect on the overall macroeconomic environment, potentially affecting steel and iron ore demand and prices as well as increasing energy costs. Both the conflict itself and the sanctions imposed and further sanctions that may be imposed, as well as potential Russian reactions, have had and could have further destabilizing effects on financial markets. The conflict, which has substantially exacerbated tensions between NATO and Russia, could escalate militarily both regionally and globally: any substantial escalation would have a material adverse effect on macroeconomic conditions. In addition, sanctions may remain in place beyond the duration of any military conflict and have a long-lasting impact on the region and globally, and could adversely impact the Group's results of operations and financial condition.”ArcelorMittal's operations in Ukraine consist of a steel plant, which produced 4.9 million tonnes of steel in 2021 and captive mines that produced 11.7 million tonnes of iron ore in 2021. The related property, plant and equipment had a carrying value of USD 2.3 billion on the Company’s statement of financial position at 31 December 2021. In particular its Kryvyi Rih steel plant recorded 4.6 million tonnes of steel shipments, generating USD 4.1 billion of sales including USD 0.9 billion of sales to customers located in Ukraine.
ArcelorMittal had announced its decision to idle its steelmaking operations in Kryvyi Rih in Ukraine on 3 March 2022 in order to ensure the safety and security of its employees and assets. ArcelorMittal has been evaluating the situation on a daily basis and production had previously been reduced with the plant operating at a technical minimum, approximately one-third of its normal production levels. The process to idle all blast furnaces commenced on the same day. ArcelorMittal in Annual report said “The Company cannot predict duration of the idling as it will depend on the remaining course of the conflict and the establishment of safe and stable operating and logistical conditions thereafter, as well as potential repairs of any damages sustained. More generally the conflict between Russia and Ukraine could have a material adverse effect on the overall macroeconomic environment, potentially affecting steel and iron ore demand and prices as well as increasing energy costs.”ArcelorMittal also said “The imposition of extensive sanctions on Russia by the EU, US, UK and other countries affects the Company's sourcing of raw materials and also, potentially, the markets for sales by the Group's other operations in the CIS with the Group recording USD 1.6 billion of sales to customers located in Russia in 2021.”ArcelorMittal added “More generally the conflict could have a material adverse effect on the overall macroeconomic environment, potentially affecting steel and iron ore demand and prices as well as increasing energy costs. Both the conflict itself and the sanctions imposed and further sanctions that may be imposed, as well as potential Russian reactions, have had and could have further destabilizing effects on financial markets. The conflict, which has substantially exacerbated tensions between NATO and Russia, could escalate militarily both regionally and globally: any substantial escalation would have a material adverse effect on macroeconomic conditions. In addition, sanctions may remain in place beyond the duration of any military conflict and have a long-lasting impact on the region and globally, and could adversely impact the Group's results of operations and financial condition.”ArcelorMittal's operations in Ukraine consist of a steel plant, which produced 4.9 million tonnes of steel in 2021 and captive mines that produced 11.7 million tonnes of iron ore in 2021. The related property, plant and equipment had a carrying value of USD 2.3 billion on the Company’s statement of financial position at 31 December 2021. In particular its Kryvyi Rih steel plant recorded 4.6 million tonnes of steel shipments, generating USD 4.1 billion of sales including USD 0.9 billion of sales to customers located in Ukraine.
