The EU has introduced new restrictions on steel imports in order to cope with what is called an 'impact from cheap steel imports'. The intention was to curb the import of cheap steel from countries like China. However, the steel industry in Ukraine, which has been struggling to survive amidst the conflict, cannot bear this burden any longer.
Ukrainian large steel company Metinvest's CEO Yuriy Ryzhenkov recently complained in an interview that the latest steel import restrictions imposed by the EU are 'unfair', and Ukraine has been included in these restrictions. The EU did not fully consider the war-torn situation faced by Ukraine.
The new EU regulations limit the total amount of steel that can be imported into the EU without taxes to 18.3 million tons per year, a decrease of 47% compared to 2024. The EU claims that this measure is intended to protect domestic steel manufacturers and to counter competition from imports from countries such as China and Turkey.
Although the EU has a free trade agreement with Ukraine, this does not prevent the EU from taking separate trade protection measures.
According to a report published by the BBC on the 19th, Reincov complained that Ukraine is treated equally with other steel exporting countries, which is 'unfair'.
Entering the European market is crucial for our survival. He called on the EU to at least grant Ukraine a waiver.
Ukraine’s steel industry estimates that the new measures could ultimately lead to a decrease of about 50% to 60% in the country’s steel exports to Europe.
The steel industry is one of the main pillars of the Ukrainian economy. Before the full escalation of the Russia-Ukraine conflict in 2022, metallurgy and mining industries accounted for about 10% of the country's national income, and they contributed one-third of its export value. The European Union is its largest customer.
The conflict has dealt a heavy blow to the Ukrainian steel industry. Reznicov revealed that since 2022, all of Ukraine's steel factories have been bombed. In September of this year, there was even a situation where steel production in the country reached zero for the first time in about 150 years. The Metinvest Group alone has seen nearly 800 employees lose their lives during the war.
In response to Ukraine's complaints, the European Commission said that when formulating policies, it took into account Ukraine's difficulties and allocated special quotas for it. However, it admitted that the quota was lower than in previous years.
Reincov also warned that the upcoming winter could be one of the most difficult winters in Ukrainian history.
Except for the EU market, we practically have no other markets to enter. Now we are shrinking our market by 60%, which doesn't help the steel industry survive.
