Ukrainian media reported on new risks to metallurgy due to the EU’s decision.

The EU imposes strict quotas and CBAM: Ukrainian metallurgy is on the verge of stopping

The European Parliament has approved new measures that include almost halving duty-free quotas for steel imports, posing a threat to Ukrainian metallurgical enterprises already affected by the war and the CBAM mechanism.

Recently, the European Parliament decided to reduce duty-free steel imports into the EU countries to 18.3 million tonnes annually, which is 47% less than the current level. The new rules will come into effect in July 2026 and provide for a 50% duty on imports exceeding quotas. Although the European Commission has stated that Ukraine will be able to supply steel to the European market, the volumes will be lower than before.

For Ukrainian steel producers, the notional European market is crucial since other markets have become virtually inaccessible following the outbreak of the full-scale war. According to GMK Center data, in 2025, 79% of Ukrainian steel exports were to EU countries, with 2.65 million tonnes of products supplied. However, the implementation of the CBAM mechanism has already reduced shipments by 60-70%.

Alexander Vodoviz, head of the CEO office at Metinvest, believes that such restrictions threaten not only Ukrainian producers but also European consumers who depend on Ukrainian steel. He notes that under current conditions, Ukrainian metallurgists face electricity shortages and logistical difficulties.

The European Commission is currently negotiating quota distribution among exporters, offering Ukraine a quota of 713,000 tonnes, which producers consider insufficient. A representative of ArcelorMittal Kryvyi Rih expressed concern, noting that the enterprise planned to export 1.25 million tonnes to the EU in 2026.

MEP Karin Karlsbro, who visited Ukrainian enterprises, emphasizes the importance of supporting Ukraine in these difficult conditions. The European Parliament continues to explore possibilities regarding CBAM carbon duties for Ukraine, highlighting the special circumstances created by the war.