Ukraine Steel Faces EU Tariffs Amidst War

The head of a major Ukrainian steel company has urged the European Union to remove import restrictions, stating that Ukraine has been unfairly grouped with other nations in measures targeting cheap imports. Yuriy Ryzhenkov, CEO of Metinvest, explained to the BBC that the EU's recently imposed steel tariffs are "unfair" and disregard Ukraine's current wartime circumstances.

Ryzhenkov is advocating for a specific exemption, or "carve out," for Ukraine to maintain its access to the EU market, emphasizing that this access is vital for the industry's survival. The EU spokesperson noted that the bloc considered Ukraine's situation but maintained overall import caps to protect its own manufacturers from competition, particularly from countries like China and Turkey.

Despite a free-trade agreement, the EU has implemented trade protection measures, limiting tax-free steel imports to 18.3 million tonnes annually, a significant reduction from previous levels. Ukraine's steel industry anticipates a 50-60% decline in exports to the EU. The EU stated that while Ukraine has a specific quota, it is lower than in prior years, though they have offered compensation to major suppliers like Ukraine.

Steel is a cornerstone of Ukraine's economy, contributing significantly to national income and exports before the full-scale Russian invasion in 2022. The industry has been severely damaged by ongoing Russian bombardments, with all Ukrainian steel mills having been targeted. Ryzhenkov highlighted that strikes have intensified recently, impacting production and worker safety.