EU Protective Measures Will Hit Ukrainian Metallurgy

New EU restrictions are being introduced against the backdrop of a global surplus of steel, a significant portion of which is linked to Chinese exports.

The new protective quotas imposed by the European Union on steel imports could severely impact Ukrainian metallurgy, which remains one of the key sources of foreign currency earnings and tax revenues for the state during the war. This was reported by the British newspaper The Guardian.

In a comment to the publication, the CEO of the Ukrainian group Metinvest, Yuriy Ryzhenkov, noted that the new quota system, which will come into effect on July 1, will create serious risks for Ukrainian steel producers, as the EU has reduced the volumes of duty-free quotas on imported metal products and increased the tariff on supplies exceeding the established limits to 50%.

"Ukraine does not pose a significant threat to the EU's metallurgy industry. Our volumes are not large enough. Destroying one of the few industries that continue to operate during the war cannot be called a wise decision," he said.

The newspaper writes that the new restrictions are being introduced against the backdrop of a global surplus of steel, a significant portion of which is linked to Chinese exports. At the same time, Ukrainian producers find themselves in a particularly difficult position due to the loss of part of their traditional markets after the onset of full-scale war and the forced reorientation towards the European market.

An additional challenge for the industry remains the environmental tariff CBAM, which increases the costs for metallurgists. As a result, Ukrainian enterprises are simultaneously facing both new trade barriers and additional financial burdens.

The Guardian emphasizes that such decisions could have consequences not only for the industry but also for the economy of our country as a whole. Metallurgy is traditionally one of the largest sources of export revenue, and large metallurgical companies are among the largest taxpayers in Ukraine.

Journalists also note that Ukrainian metallurgists continue to operate under constant Russian attacks on energy and transport infrastructure. Due to the war, Metinvest has already lost its plants in Mariupol and has been forced to halt operations at its coal enterprise in Pokrovsk due to the proximity of hostilities.

Currently, the company's metallurgical plants in Zaporizhzhia and Kamianske are operating at partial capacity. However, they continue to support exports, provide jobs, and pay taxes to the budget.

New European restrictions could weaken one of the few industries that remains a pillar of the Ukrainian economy during the war. This is why the issue of access for Ukrainian metal products to the EU market, according to industry representatives, must take into account not only trade but also economic and security implications for Ukraine, the publication emphasized.

In the first quarter of 2026, exports of finished Ukrainian steel products to the EU have already decreased by 17% year-on-year. This is evidenced by data from the European Steel Association.