The EU said last month it would reduce duty-free steel import quotas for each country by July 1 and impose a 50 percent tariff on volumes exceeding the quotas, up from the current 25 percent., as previously reported by SteelOrbis. These measures are aimed at protecting the EU steel sector from global overproduction, although some lawmakers supported maintaining higher import volumes to Ukraine.
Zanotti said that country-specific restrictions will apply to Ukrainian steel, despite the fact that the EU granted Ukraine a three-year exemption less than a year ago, valid until June 2028. a very important engine of this country," Zanotti told the media.
Ukraine's steel sector is already under severe pressure
Zanotti said that steel production in Ukraine has fallen by as much as 80 percent since the start of the war, and warned that EU restrictions could cause long-term economic damage. He added that the sector is already facing labor shortages, electricity shortages and the highest electricity costs in Europe.
Export and revenue losses may increase
According to the Association of the Mining and Metallurgical Sector of Ukraine, a decrease in steel exports may lead to a reduction in Ukraine's annual revenue in foreign currency by at least 1.2 billion US dollars and a reduction in tax revenues by about 17.5 billion hryvnia (398 million US dollars). Before the war, Ukraine's steel sector accounted for about a third of the country's exports and generated more than $20 billion in hard currency revenue per year. The industry also lost several large enterprises due to the offensive of Russian troops in the eastern part of the Donetsk region.
