The Federation of Employers of Ukraine (FRU) has called on the Minister of Economy and Environmental Protection of Ukraine Oleksandr Kravchenko to intensify negotiations with the European Union on restoring full access of Ukrainian steel products to the EU market while strengthening protection of the domestic market of Ukraine from unfair imports.
The Federation emphasized that the mining and metallurgical industry of Ukraine remains one of the largest in the country. the most important sectors of the economy, despite the ongoing full-scale war. After Russia's invasion, the EU introduced temporary trade liberalization measures that helped Ukrainian producers maintain access to export markets. As a result, the EU has become the main export destination for Ukrainian steel проката.
The new EU steel import regime threatens Ukraine's экспорту
However, the EU has introduced a new standard for steel import regime from July 1, 2026, setting tariff quotas and imposing a 50% duty on imports exceeding these quotas. According to FRU, these restrictions also apply to the Ukrainian steel industry, despite the fact that Ukraine does not contribute to the global oversupply of steelmaking capacity, which these measures are aimed at eliminating.
The Federation noted that the Organization for Economic Cooperation and Development (OECD) has officially confirmed that there is no excess steelmaking capacity in Ukraine. Thus, FRU argues that the Ukrainian steel company should receive special treatment, taking into account both the structure of the country's steel industry and the extraordinary economic conditions that have developed as a result of the war.
According to FRU estimates, the new EU restrictions on steel imports could lead to Ukraine losing about $1.2 billion in foreign exchange earnings. These measures could also lead to a 0.6 percent reduction in the country's GDP and a decrease in state budget revenues of about 17.5 billion hryvnias (392.13 million dollars). The Federation warned that these economic losses could directly affect Ukraine's ability to finance its defense needs and provide economic support to the frontline regions.
Ukraine urged to seek tax exemption before joining the EU ЕС
Against this background, FRU called on the Ukrainian government to continue negotiations with EU institutions on the exclusion of Ukrainian steel products from the new import regime until Ukraine becomes an EU member. At the same time, the federation called on the authorities to strengthen measures against unfair steel imports into the Ukrainian market.
FRU also recommended starting preparations for the future import regime of Ukrainian steel agreed with the EU. Such a structure should include mechanisms designed to prevent the import of Russian-made steel, as well as to harmonize trade protection instruments.
The government and the steel industry were called upon to coordinate the strategy ЕС
The Federation stressed that Ukraine should start preparing its position in the run-up to The European Commission's Long-term decisions on the steel import regime in the European Union. According to FRU, closer cooperation between the Ukrainian government and domestic businesses will be necessary to protect the country's economic and industrial interests.
The Federation stated that it was ready to participate in this process and proposed to hold a joint meeting with the participation of the Ministry of Economy and Environment, the Office of the Vice Prime Minister for European Affairs and European Integration.- Atlantic Integration, the Ministry of Foreign Affairs and representatives of the mining and metallurgical industry of Ukraine. The proposed purpose of the meeting will be to develop a coordinated national position on preserving the access of Ukrainian metallurgists to the EU market and strengthening trade protection within the country.
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