The Federation of Employers of Ukraine (FRU) has called on Ukrainian Minister of Economy and Environment Oleksandr Kravchenko to intensify negotiations with the European Union to restore full access for Ukrainian steel products to the EU market while strengthening protection of Ukraine's domestic market against unfair imports.
The federation emphasized that Ukraine's mining and metallurgical industry remains one of the country's most important economic sectors despite the ongoing full-scale war. Following Russia's invasion, the EU introduced temporary trade liberalization measures that helped Ukrainian producers maintain access to export markets. As a result, the EU has become the main export destination for Ukrainian rolled steel products.
New EU steel import regime threatens Ukrainian exports
However, the EU introduced a new steel import regime on July 1, 2026, establishing tariff-rate quotas and imposing a 50 percent duty on imports exceeding those quotas. According to the FRU, these restrictions also apply to Ukrainian steel despite Ukraine not contributing to the global steel overcapacity that the measures are intended to address.
The federation pointed out that the Organization for Economic Cooperation and Development (OECD) has officially confirmed the absence of excess steelmaking capacity in Ukraine. The FRU therefore argues that Ukrainian steel should receive special treatment given both the structure of the country's steel industry and the extraordinary economic conditions resulting from the war.
According to FRU estimates, the EU's new steel import restrictions could result in approximately $1.2 billion in lost foreign exchange revenues for Ukraine. The measures could also reduce the country's GDP by 0.6 percent and lower state budget revenues by approximately UAH 17.5 billion ($392.13 million). The federation warned that these economic losses could directly affect Ukraine's ability to finance its defense requirements and provide economic support to frontline regions.
Ukraine urged to seek exemption until EU accession
Against this backdrop, the FRU called on the Ukrainian government to continue negotiations with EU institutions to exclude Ukrainian steel products from the new import regime until Ukraine becomes an EU member. At the same time, the federation urged authorities to strengthen measures against unfair steel imports entering the Ukrainian market.
The FRU also recommended beginning preparations for a future Ukrainian steel import regime coordinated with the EU. Such a framework should include mechanisms designed to prevent imports of Russian-origin steel as well as harmonized trade defense instruments.
Government and steel industry urged to coordinate EU strategy
The federation stressed that Ukraine should begin preparing its position ahead of the European Commission's long-term decisions regarding the bloc's steel import regime. According to the FRU, closer cooperation between the Ukrainian government and domestic businesses will be necessary to protect the country's economic and industrial interests.
The federation said it is ready to participate in the process and proposed holding a joint meeting involving the Ministry of Economy and Environment, the Office of the Vice Prime Minister for European and Euro-Atlantic Integration, the Ministry of Foreign Affairs, and representatives of Ukraine's mining and metallurgical industry. The proposed meeting would aim to develop a coordinated national position on maintaining Ukrainian steelmakers' access to the EU market and strengthening trade protection at home.
