Interpipe CEO Luca Zanotti has warned that the European Union’s planned steel import quota cuts could further pressure Ukraine’s steel industry, which has already been severely weakened by the war, according to Reuters.
The EU stated last month it would reduce duty-free steel import quotas per country by July 1 and impose a 50 percent tariff on volumes exceeding the quotas, compared to the current 25 percent, as previously reported by SteelOrbis. The measures are aimed at protecting the EU steel sector from global overproduction, although some lawmakers have supported maintaining higher import volumes for Ukraine.
Zanotti said Ukrainian steel would be subject to the country-specific restrictions despite the EU having granted Ukraine a three-year exemption less than a year ago, valid until June 2028. “They cannot, on the one hand, say, we're going to support Ukraine, and on the other hand, damage the industrial sector, which is a very important engine of this country,” Zanotti told the media.
Ukraine’s steel sector already under severe pressure
Zanotti said Ukraine’s steel production has fallen by as much as 80 percent since the start of the war and warned that the EU restrictions could cause long-term economic damage. He added that the sector is already facing labor shortages, electricity shortages and the highest electricity costs in Europe.
Export and revenue losses could deepen
According to the Association of Ukrainian Mining and Metallurgical Sector, lower steel exports could reduce Ukraine’s annual foreign currency revenue by at least $1.2 billion and cut tax receipts by about UAH 17.5 billion ($398 million). Before the war, Ukraine’s steel sector accounted for about one-third of the country’s exports and generated more than $20 billion per year in hard currency revenue. The industry has also lost some major plants following the advance of Russian troops in the eastern Donetsk region.
