Foreign Policy (FP) quoted experts' assessments that the loss of the city of Pokrovsk in Donbass by the Armed Forces of Ukraine (VSU) threatens Kiev not only militarily but also brings economic risks.
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| Fierce fighting in Pokrovsk city. (Source: RBC) |
The city is home to the Pokrovskoye mining enterprise, Ukraine's largest producer of coking coal. Coal is needed to produce pig iron, which makes up the bulk of Ukraine's exports, and is also needed for the steel industry, an important source of tax revenue.
“Without steel mills, the Ukrainian economy would die. This is a very, very important part of the economy ,” said Stanislav Zinchenko, CEO of the Ukrainian consulting firm GMK Center.
Without cheap domestic coking coal, Ukrainian steelmakers will have to turn to imports, causing costs to skyrocket. This will further complicate their ability to compete in the global market, Zinchenko said.
According to the General Customs Service of Ukraine, in 2023, Ukraine reduced pig iron exports by 5.8% compared to 2022 - to 1.25 million tons. Compared to 2021, pig iron exports abroad decreased by 61.4%, equivalent to 1.99 million tons. According to data for the first half of 2024, Ukraine's pig iron exports decreased by 19.8% compared to the same period last year. In August, exports increased by 11.8% compared to July.
Pokrovsk is located 66 km northwest of Donetsk. The city has a major railway junction, which is the intersection of the lines from Konstantinovka and Kurakhovo to Pavlograd and the Dnieper. The city is also located on the M30 (E50) Pokrovsk - Karlovka - Donetsk highway, as well as the T-0504 and T-0515 highways.
According to FP , Pokrovsk may have lost some of its value as a transit hub for the Ukrainian army because the roads to the north and east are “virtually unusable”, but it still serves as a “containment” for the Russian army.
Source: https://baoquocte.vn/de-pokrovsk-that-thu-bao-my-canh-bao-ukraine-se-ton-that-rat-lon-ca-quan-su-lan-kinh-te-289946.html
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