Yuriy Ryzhenkov, head of Metinvest, one of Ukraine's largest steelmakers, is calling on the European Union to rethink its import restrictions on Ukrainian steel. He believes these measures unjustly lump Ukraine in with countries like China, meant to tackle cheap imports. In an interview, Ryzhenkov called the new tariffs "unfair, " saying they ignore Ukraine's current dire circumstances.
The EU brought in these restrictions to protect its steel producers, limiting tax-free steel imports to 18.3 million tonnes each year. That's down 47% from 2024 levels. While there are quotas for specific countries, the main aim is to shield EU nations from low-cost imports from places like China and Turkey. Even with a free-trade deal between the EU and Ukraine, the EU can still enforce its own trade protection rules.
Ryzhenkov stressed how vital the EU market is for Ukraine's survival, especially with the ongoing war with Russia. "Access to the European market is crucial for survival, " he insisted, arguing that these restrictive measures hurt more than help. He warned that Ukraine's steel exports to the EU might drop by as much as 50–60% because of these rules.
However, the European Commission argues it took Ukraine's tough situation into account when crafting its steel policy. A spokesperson noted that Ukraine has a specific steel quota that ensures exports, even if they're less than before. The EU has also offered compensation to its biggest suppliers, Ukraine included.
Steel is a backbone of Ukraine's economy, a major vasion in 2022. The EU is Ukraine's top steel buyer, but the industry has been battered by constant Russian attacks. All Ukrainian steel mills have come under fire since the conflict began, and recent strikes have intensified. In September, Ukraine's steel production hit a historic low, with no steel produced for the first time in roughly 150 years.
Ryzhenkov shared that nearly 800 Metinvest workers have died since the war started. The company has tried to protect its workforce, improving shelters at mills for air raids. He noted the limitations of these efforts, acknowledging the challenges faced by the industry.
The approaching winter adds more hurdles for Ukraine's steel industry. Ryzhenkov expects it to be challenging, pointing to logistical challenges in accessing markets outside the EU. With EU market access potentially slashed by 60%, the industry’s survival hangs in the balance.
