Ukraine’s steel industry has warned that revised EU steel safeguard measures due to take effect on July 1 could significantly damage the country’s industrial sector and undermine its ability to finance defense and reconstruction efforts, according to a report by the Guardian.
As SteelOrbis reported previously, the Council of the European Union formally adopted a new regulation establishing a revised framework to protect the EU steel market from the effects of global steel overcapacity, ensuring continued trade protection after the current steel safeguard measure expires on June 30, 2026.The new regulation forms part of the European Commission’s Steel and Metals Action Plan and will enter into force on July 1, 2026.
Revised safeguard regime introduces stricter quotas
Under the updated safeguard framework, tariff-free import quotas for a range of steel products will be reduced. Imports exceeding those quotas will be subject to a 50 percent tariff, double the previous rate.
European authorities argued that the measures are necessary to protect domestic steelmakers from rising import pressure and maintain the competitiveness of the EU steel industry. However, Ukrainian producers contend that the restrictions fail to recognize the unique circumstances facing the country’s steel sector during wartime.
Metinvest says Ukraine is not a threat to EU steelmakers
Yuriy Ryzhenkov, CEO of Metinvest, Ukraine’s largest steel producer, criticized the revised safeguard system and argued that Ukrainian exports represent only a small portion of the European market. According to Mr. Ryzhenkov, Ukraine’s steel industry does not pose a meaningful competitive threat to EU producers, and the new EU quota could “kill the Ukrainian steel industry”.
Since the outbreak of the war, Ukraine’s steel industry has faced significant operational challenges. Repeated attacks on infrastructure have increased production costs. At the same time, access to many traditional export destinations has become more difficult, forcing producers to deepen integration with European supply chains. As a result, the EU has become one of the most important markets for Ukrainian steel exports.
Potential impact on government revenues
The steel sector remains a key contributor to Ukraine’s economy and public finances. Metinvest, owned by businessman Rinat Akhmetov, is widely recognized as one of Ukraine’s largest private contributors to state tax revenues. Industry representatives estimate that reduced access to EU markets could cost the Ukrainian government hundreds of millions of dollars in tax income.
Additionally, Ukrainian steel producers have repeatedly warned that CBAM could create additional financial burdens for the industry. Many steelmaking facilities continue to rely on blast furnace-based production routes, which generally have higher carbon emissions than newer technologies.