EU to Cut Steel Import Quotas by 47% from July 1, Hurting Ukraine's Exports
The EU will cut steel import quotas by 47% from July 1, imposing a 50% tariff on excess volumes. This could cost Ukraine up to €1 billion in export revenue, as its steel production is already severely impacted by the war. The new quota is 73% below last year's exports to the EU, Ukraine's main market.
The European Union will reduce steel import quotas by 47% from July 1 and apply a 50% tariff on volumes exceeding this limit. Ukrainian producers and officials warn this could cost the country up to €1 billion in export revenue during wartime.
Ukraine's steel production capacity has plummeted to about 8 million tonnes, down from a historical 40 million, due to Russia's war destroying Azovstal and cutting off coking coal supplies. The European Commission offered Ukraine a duty-free quota of 713,000 tonnes. This is approximately 73% below last year's 2.65 million tonnes of metal products Ukraine exported to the EU, its primary market.
Oleksandr Vodovyz of Metinvest, which supplies over half of Ukraine's steel exports to the EU, stated this measure would severely hinder Ukrainian companies' ability to supply the European market. Ukrainian steelmakers face challenges pivoting to other markets due to the war, including competition from Russia and Turkiye with significantly cheaper electricity, and the long planning and certification requirements for steel production chains.