Yuriy Ryzhenkov, chief executive of Metinvest, has asked the European Union to adjust its latest import rules. Speaking to the BBC, he argued that the new tariffs were enacted without sufficient regard for Kyiv’s ongoing conflict with Russia. Ryzhenkov described the measures as inequitable, noting that Ukraine has been grouped with other importers despite its unique geopolitical and economic challenges. He specifically requested a "carve-out" allowing Ukrainian steel to access the European market more freely, stating that such access is vital for the survival of the domestic industry.
The European Commission recently imposed these restrictions to shield member-state manufacturers from low-cost competition, particularly from China and Turkey. The policy caps tax-free steel imports at 18.3 million tonnes per year, representing a 47% reduction from 2024 levels. Although a free trade agreement exists between the EU and Ukraine, it does not automatically exempt Kyiv from separate trade protection measures. A European Commission spokesperson acknowledged that Ukraine’s difficult situation was considered, but noted that the specific quota for Ukraine is lower than in previous years. The EU stated that it has offered compensations to major suppliers, including Ukraine, to mitigate the impact of the reduced volumes.
The Ukrainian steel industry estimates that exports to the EU could fall by 50 to 60 percent under the new regime. This decline is particularly concerning because metallurgy and mining generated about 10% of Ukraine's national income and one-third of its exports before Russia's full-scale invasion in 2022. According to MyJoyOnline, steel products are a foundation in Ukraine's economy, and the EU remains its top customer. However, the industry has suffered significantly from continued Russian bombardment, with all Ukrainian steel mills experiencing strikes at various points since 2022.
Ryzhenkov noted that strikes have intensified recently, leading to a period in September when no steel was produced in Ukraine for the first time in approximately 150 years. Nearly 800 Metinvest workers have died since the war started, prompting the company to improve covered shelter areas at its mills. Ryzhenkov expects the coming winter to be exceptionally difficult, citing a lack of logistics to access markets other than the EU. He warned that cutting the available market by 60% while facing logistical constraints creates a dire situation for the industry's survival.