The European Union has decided to introduce new trade barriers for steel imports, which will be a serious challenge for the Ukrainian metallurgy industry, already affected by the full-scale war and Russian aggression. A separate tariff quota for Ukraine contradicts the exemption granted to our country last year as a show of support during the wartime.
This is reported by Finway
Position of Interpipe’s management and economic risks
The CEO of the Ukrainian industrial company Interpipe, Luca Zannotti, emphasized the inconsistency of actions by European institutions in his interview with the British agency Reuters. Less than a year ago, Ukraine received an exemption from the EU regarding steel quotas until June 2028, but now Ukrainian steel is already subject to new restrictions.
“On one hand, you cannot talk about supporting Ukraine, and on the other, harm its industrial sector, which is the most important engine of the country’s economy,” emphasized Luca Zannotti, adding that the EU quota could lead to an irreversible decline in Ukraine’s economy.
State of the industry and new EU restrictions
Luca Zannotti pointed out that, according to the Organization for Economic Cooperation and Development, since the beginning of Russia’s invasion of Ukraine, our country’s steel production capacity has decreased by 80%. Additional challenges for the industry include labor shortages, lack of electricity, and the highest electricity prices in Europe. The head of Interpipe stressed that the Ukrainian steel industry does not pose a threat to the European market.
Starting in July, the European Union plans to double the import duty on steel to 50%. The quota for duty-free exports will also be nearly halved, significantly limiting the volumes of Ukrainian steel supplies to European countries.