The 20th package of EU sanctions further tightens restrictions on Russian steel-related trade

The European Union has adopted its 20th package of sanctions against Russia, introducing new trade, energy, finance, and anti-circumvention measures aimed at weakening Russia's military economy. For the metallurgical sector, the most urgent measures are new restrictions on the import of certain metals, minerals and steel scrap, as well as expanded export bans extending to steel products and tools used in metallurgical production.

According to the EU Council, the package restricts the import of goods that generate significant revenue for Russia, including certain raw materials, certain metals and minerals, scrap steel and other metals, chemicals, vulcanized rubber products and tanned fur skins. The total cost of the new import restrictions exceeds € 570 million

The new measures are based on previous EU sanctions aimed at ferrous metallurgy products of Russian origin, including products processed in third countries using raw materials of Russian origin. The package also strengthens anti-circumvention measures. For the first time, the EU activated its anti-waste tool by restricting the export of certain high-risk goods to Kyrgyzstan due to the risk of re-export to Russia. Although this measure mainly covers CNC machines and radio equipment, it is relevant for the steel and equipment markets, as CNC machines are widely used in metalworking and industrial production.

For steel market participants, the new package is expected to enhance due diligence