Ukraine accuses EU of unfair restrictions on steel imports

Ukraineshouldadopta more pragmaticapproachinitstraderelationswiththeEuropeanUnionandmore activelyprotecttheinterestsofnationalproducers. This was stated by Alexander Vodoviz, head of the office of the chief executive director of the metallurgical group „Metinvest“, during the Kiev International Economic Forum, GMK Center reports.

According to him, European politicians are putting first of all, the protection of its own industry, jobs and incomes of citizens, which leads to restrictions on Ukrainian enterprises despite the severe consequences of the war. Vodoviz pointed out that the EU has reduced the quotasforimportofsteelproductsfromUkraineandothercountries.WhilepreviouslyUkrainianproducerswereabletosupplyapproximately2milliontonsannuallytotheEuropeanmarket,nowthesetquotaisbarely670thousand. tons.

An additional complication is created by the distribution of the quotas into several categories, one of which is common to eight countries. According to him, Turkish producers have exhausted the total quota of 360 thousand. tonsin just two days.

The representative of „Metinvest“ also criticized the unpredictabilityof European trade policy. According to him, despite previous assurances, the EU has introduced both new import restrictions and the Carbon Border Adjustment Mechanism (CBAM). The war has further worsened the competitiveness of the Ukrainian metallurgy. Increased prices for electricity, railway tariffs, marine insurance, and transportation services make exporting to more distant markets economically unprofitable. Because of this, the EU remains the main market for the production of „Metinvest“.

The restrictions also affect the group's European assets. Just two months after the acquisition of a pipe manufacturing company in Romania, new quotas have made it difficult to supply it with raw materials and products.

Fears about future restrictions are particularly serious. The European Commission is monitoring import volumes during the July-December period, as according to Vodoviz, these data could influence quotas for the next five to ten years. Ukrainian enterprises, however, cannot use their full production capacity due to the destruction caused by Russian attacks.

Vodovizalso warnedthattheRussianlobbyinBrusselsistryingtopushUkrainiansteeloutoftheEuropeanmarket. At the same time, according to him, quotas for certain Russian steel semi-finished products have been maintained at their historical levels for a five-year period.

From „Metinvest“ They urge the Ukrainian government to intensify negotiations with Brussels and to seek additional mechanisms to support the industry. Among the proposals are the creation of a fund for insurance against military risks, the attraction of European financing for the reconstruction of destroyed enterprises, and the expansion of Ukrainian companies' access to international capital.

According to the company The future of Ukrainian metallurgy will depend not only on the restoration of production capacity, but also on the conditions for access to the European market.