Ukraine’s steel industry and government officials have warned that the EU’s planned reduction of steel import quotas could significantly damage the country’s wartime economy and sharply reduce export revenues, according to a report by the Financial Times.
The EU plans to reduce steel import quotas by 47 percent from July 1 and impose a 50 percent tariff on imports exceeding quota limits as part of new measures designed to protect the EU steel industry from global overcapacity and rising imports.
Ukrainian steelmakers warn of major export losses
According to Ukrainian steel producers, the proposed restrictions could severely limit access to their most important export market. Metinvest stated that the measures would dramatically reduce the ability of Ukrainian steelmakers to supply the European market. The company reportedly warned that Ukraine currently has few viable alternative export destinations because producers face intense competition from Turkish suppliers, Russian-linked material, and lower-cost producers benefiting from cheaper energy.
The European Commission proposed a tariff-free bilateral quota of approximately 713,000 mt for Ukrainian steel exports during initial negotiations in Geneva. Ukraine exported around 2.65 million mt of steel to the EU last year, making the region the country’s largest steel export market.
Ukrainian officials argue that the proposed reduction represents roughly a 70 percent cut compared to recent export volumes and could result in up to €1 billion in lost export revenues.
Industry warns of broader economic consequences
Industry representatives warn that losing access to the EU market could further weaken Ukraine’s industrial base and export earnings at a critical time for the country’s economy.
Some European lawmakers have argued that Ukraine should receive special treatment because of its wartime situation and EU candidate status. According to reports, members of the European Parliament called on the European Commission to take Ukraine’s exceptional circumstances into account during negotiations over quota allocations. The European Commission stated that Ukraine would receive a country-specific quota arrangement, though at lower levels than in previous years.
