The EU has promised to take the situation in Ukraine into account when drafting steel import restrictions
20 May 11:11
The European Commission, in drafting new restrictions on steel imports, will partially take into account the difficult situation in Ukraine in order to support its exports, according to the *Financial Times*, as reported by "Komersant Ukrainian".
“Ukraine remains an important steel importer to the EU, and we are ensuring that it can take advantage of a special quota so that its exports to the EU can continue, even if the volume is lower than in previous years,” said European Commission spokesperson Paula Pinhu.
Pinho was asked to comment on the implications for Ukraine of the EU’s measures to restrict steel imports, as the European Commission believes that global overproduction of steel is harming the EU’s own producers.
“During the negotiations and when deciding on the exact quota, we will, of course, take into account the unique and very difficult current situation in Ukraine,” she added.
She explained that the new measures will apply to all EU partners, including those with whom free trade agreements have been concluded. They account for over 80% of steel imports into the EU. According to her, only the countries of the European Economic Area (Iceland, Liechtenstein, Norway), which are already integrated into the European market, will benefit from a partial easing of these measures.
According to Pinho, quotas will be discussed individually for each specific country. “Specific measures” will be taken regarding some countries.
“All of this is being carried out within the framework of WTO rules,” Pinho stated.
Earlier, the Financial Times reported that new European restrictions could cost Ukraine about €1 billion in steel export revenue. The issue is that the European Union intends to reduce steel import quotas by 47% starting July 1 and impose a 50% tariff on shipments exceeding this limit.
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According to the publication, the restrictions will affect Ukraine despite the free trade agreement with the EU. Specifically, the European Commission proposes setting a duty-free quota for Ukraine at just 713,000 tons. Meanwhile, in 2025, Ukrainian companies exported 2.65 million tons of steel to the EU. The reduction could amount to about 70%.
Ukrainian steel industry suffers significant losses due to CBAM
It was previously reported that Ukrainian steelmakers are already suffering significant losses due to the EU’s introduction of CBAM (the Carbon Border Adjustment Mechanism, also known as the carbon tax — ed.). According to some estimates, the introduction of CBAM will lead to substantial losses for the Ukrainian economy. For instance, by 2030, Ukraine’s GDP could shrink by 2.1%. The steel and energy sectors are suffering the most from this tax.
In particular, Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih, stated that the introduction of CBAM has already led to a complete halt in the company’s exports of metal products to the EU market. According to him, the company’s clients in the EU canceled all orders for the first quarter of 2026 after learning of the need to pay an additional CBAM levy of $60–90 per ton of product.
Deputy Prime Minister for European Integration Taras Kachka and Minister of Economy Oleksiy Sobolev previously stated that the European Commission had discriminated against Ukraine by imposing the CBAM on its steelmakers.
In 2025, Ukraine exported 2.65 million tons of metal products to the EU, and the EU itself remained the main market for Ukrainian steel.
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