The European Union has adopted its 20th sanctions package against Russia, introducing new trade, energy, finance and anti-circumvention measures aimed at weakening Russia’s war economy. For the steel sector, the most relevant measures include new restrictions on imports of certain metals, minerals and steel scrap, as well as expanded export bans covering articles made of steel and tools used in metal production.
According to the Council of the EU, the package restricts imports of goods that generate significant revenues for Russia, including certain raw materials, certain metals and minerals, scrap of steel and other metals, chemicals, vulcanized rubber articles and tanned fur skins. The total value of the new import restrictions exceeds €570 million.
The new measures build on earlier EU sanctions targeting Russian-origin iron and steel products, including products processed in third countries using Russian-origin iron or steel inputs. The package also strengthens anti-circumvention controls. For the first time, the EU activated its anti-circumvention tool, restricting exports of certain high-risk goods to Kyrgyzstan due to the risk of re-export to Russia. Although this measure mainly covers CNC machines and radio equipment, it is relevant to steel and machinery markets because CNC machines are widely used in metalworking and industrial production.
For steel market participants, the new package is expected to increase due diligence requirements, especially for scrap, semi-finished and processed metal products, metalworking tools and trade involving third countries. Importers and exporters will likely face closer checks on origin, routing, end-use and counterparties.
Overall, the package does not introduce a full new ban on all Russian steel products, as many restrictions were already in place. However, it expands the sanctions perimeter around Russia’s metals trade by targeting steel scrap, steel articles, metal production tools and possible circumvention routes.
From the steel sector’s perspective, the key CN codes in the package include 7204, covering iron and steel scrap; 7318, covering fasteners made of iron or steel; 7325, covering other cast articles of iron or steel; and 8209 and 8311, covering certain tools and materials used in metal production. In addition, CNC machines for metalworking, which the EU included in the scope of restrictions aimed at preventing the circumvention of sanctions, fall under code 8457 10.
