Ukraine's steel industry has warned that the EU's revised steel protection measures, which will come into force on July 1, could cause significant damage to the country's industrial sector and undermine its ability to finance defense and recovery efforts, according to a Guardian report.
As SteelOrbis previously reported, The Council of the European Union has officially adopted a new regulation setting out a revised framework for protect the EU steel market from the effects of global steel overproduction, ensuring continued trade The new regulation is part of the European Commission's Steel and Metals Action Plan and will come into force on 1 July 2026.
Revised safeguard regime introduces stricter quotas
Duty-free measures will be reduced as part of the updated safeguard system import quotas for a number of steel products. Imports exceeding these quotas will be subject to a 50 percent tariff, double the previous rate.
European authorities say the measures are necessary to protect domestic steel producers from rising import pressure and keep the EU steel industry competitive. However, Ukrainian producers argue that the restrictions do not take into account the unique circumstances faced by the country's steel sector during the war.
Metinvest says Ukraine poses no threat to EU steelmakers
Yuriy Ryzhenkov, CEO of Metinvest, Ukraine's largest steel producer, has criticized the revised guarantee system and stated that Ukrainian exports represent only a small part of the European market. According to Mr. Ryzhenkov, the Ukrainian steel industry does not pose a significant competitive threat to EU producers, and the new EU quota could “kill the Ukrainian steel industry.”
Since the outbreak of the war, the Ukrainian steel industry has faced significant operational problems. Repeated attacks on infrastructure have increased production costs. At the same time, access to many traditional export destinations has become more difficult, forcing manufacturers 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 revenue
Steel
