Yuriy Ryzhenkov, the chief executive of Ukrainian steel producer Metinvest, has called on the European Union to exempt Ukrainian products from new import restrictions. Ryzhenkov stated that the measures, intended to curb low-cost imports from countries like China and Turkey, have been applied to Ukraine without regard for the country's ongoing war with Russia. He characterized the current restrictions as unfair and requested a "carve out" to ensure continued access to the European market.
The European Commission recently implemented these trade protections to support manufacturers within member nations. The policy caps the total amount of steel that can enter the EU tax-free at 18.3 million tonnes per year. This figure represents a 47% decrease compared to 2024 levels. While a free-trade agreement exists between the EU and Ukraine, it does not prevent the bloc from applying these separate trade protection measures.
A spokesperson for the European Commission stated that the EU took Ukraine’s "difficult situation" into account when drafting the policy. The spokesperson noted that Ukraine retains a specific quota that guarantees some metal exports, though they acknowledged this level is lower than in previous years. The EU also reported that it had offered compensation to its largest suppliers, a group that includes Ukraine.
The Ukrainian steel industry estimates that these new restrictions could lead to a 50% to 60% reduction in its exports to the EU. Before the full-scale invasion by Russia in 2022, the metallurgy and mining sectors represented approximately 10% of Ukraine's national income and one-third of its total exports, with the EU serving as the primary customer. Ryzhenkov reported that the industry has faced significant disruptions; he noted that at one point in September, no steel was produced in the country for the first time in 150 years.
The steel industry is a primary component of Ukraine's economy, previously generating roughly 10% of national income. The trade restrictions affect Ukrainian steel producers and their employees, including the workers at Metinvest, which has already reported the deaths of nearly 800 staff members due to the conflict. For these workers and the broader Ukrainian economy, the 47% reduction in tax-free EU import quotas impacts potential revenue at a time when traditional export logistics are limited by war.
Ukrainian producers expect a direct impact on their ability to sell goods to their largest customer, the EU, potentially facing a 50% to 60% market reduction. This change occurs as the industry simultaneously manages the costs of repairing bombed facilities and maintaining shelters for staff during air raids. Ryzhenkov stated that because current logistics prevent access to most markets outside the EU, the loss of market space directly threatens the survival of Ukrainian mills.
The policy sets a precedent for how the EU balances its internal manufacturing protections with its support for the Ukrainian economy during the conflict. The next steps involve the implementation of these lower quotas as the industry enters the winter season. While the EU spokesperson mentioned offered compensations, the specific terms and effective dates for such relief were not reported. The Ukrainian steel industry continues to operate under bombardment while seeking further diplomatic adjustments to these trade caps.