Ukrainian steel pipe and railway product producer Interpipe has called on the Ukrainian government to continue protecting exporters' access to foreign markets, warning that the European Union's new steel import tariff quota system has created additional challenges for the country's steel industry.
Speaking at the online event “From winter to winter: how is the Ukrainian economy recovering?” organized by the Centre for Economic Strategy, Nataliya Sydoruk, government relations director at Interpipe, said the company has had to adapt to numerous challenges since the start of the full-scale war, including security risks linked to the proximity of the front line, energy-related issues and labor shortages. She added that the EU's new tariff quota system for steel imports, which entered into force on July 1, has become another major challenge.
Duty-free quota could soon be exhausted
According to Sydoruk, Interpipe has already used a significant share of its quarterly duty-free quota for seamless pipe exports to the EU during the first 22 days of July.
She stated that the quota is likely to be exhausted next month, after which exports to the EU would become subject to an additional 50 percent import duty.
Interpipe seeks revision of quota calculation
Sydoruk reiterated its call for the European Commission to correct what it described as a technical error in the calculation of Ukraine's seamless pipe quota. According to Sydoruk, the use of Eurostat data that differed from the official statistics resulted in Ukraine's annual duty-free quota being set at least 30 percent lower than it should have been.
Exporters face mounting challenges
Sydoruk also expressed caution regarding the possibility of redirecting exports to alternative markets. She noted that Chinese seamless pipe producers have already exhausted their own EU quota and are diverting excess production to other export markets, increasing competition. Sydoruk also added that continuing logistical disruptions caused by repeated attacks on Ukrainian seaports are creating further difficulties for exporters.
Sydoruk said she hopes the Ukrainian government, despite its recent reshuffle, will continue to support exporters' access to foreign markets and address issues related to the work of the country's Trade Representative. She added that export revenues remain essential for generating foreign currency inflows and supporting Ukraine's state budget.
