The European Union is reviewing import quotas on steel from Ukraine, which could significantly impact the country’s export revenues, vital in the context of the war with Russia. According to the new plans, Ukraine could lose up to 1 billion euros annually.
From July 1, the EU plans to reduce quotas on Ukrainian steel imports by 47%, and volumes exceeding the limit will be subject to a 50% tariff. The European Union explains this decision by the global oversupply in production capacities and increasing imports, which has already led to job losses in European metallurgy. However, Ukrainian exporters, such as Metinvest, are concerned about the potential consequences. The head of the CEO’s office of the company, Oleksandr Vodoviz, noted that the new restrictions could damage Ukraine’s access to the European market, which is crucial for the country.
The Ukrainian side emphasizes that the new quotas contradict the current free trade agreement between Kyiv and Brussels, which does not provide for such restrictions. According to experts, a significant decrease in exports could severely impact the economy, already suffering from the war. The European Commission is currently negotiating with Ukraine on a possible compromise, but the proposed duty-free quota of 713,000 tonnes is significantly lower than the volumes of previous years.
In the European Parliament, there is growing support for granting Ukraine a special trade regime as a candidate country to the EU, experiencing extraordinary circumstances due to the war. MEP Karin Karlsbro noted that Ukraine should receive special treatment in this situation.
