European Union tariffs designed to protect its steel industry from cheap imports, primarily from China, are inadvertently inflicting severe economic damage on Ukraine, according to Yuriy Ryzhenkov, chief executive of Metinvest, one of Ukraine’s largest steel companies. Ryzhenkov has urged the EU to grant Ukraine an exemption from these restrictions, arguing that his war-torn nation has been ‘bundled together’ with other importers without due consideration for its unique circumstances.
The EU recently implemented measures capping the amount of steel that can enter the bloc tax-free at 18.3 million tonnes per year, representing a significant 47% reduction from 2024 levels. While some country-specific quotas exist, the overarching goal is to shield EU manufacturers struggling against competitive pricing from nations like China and Turkey. However, Ryzhenkov contends that applying these blanket restrictions to Ukraine is ‘unfair’ and was enacted ‘without any consideration for the situation Ukraine is in’.
Economic Lifeline Under Threat
Despite a free-trade agreement (FTA) between the EU and Ukraine, the pact does not preclude the EU from introducing separate trade protection measures. This legal nuance has left Ukraine’s vital steel industry vulnerable. Ryzhenkov emphasized the critical importance of market access, stating, ‘Access to the European market is crucial for survival.’ He added, ‘The restrictive measures that have been put in place by the authorities in the European Union, they don’t help.’
The implications for Ukraine’s economy are stark. The country’s steel industry estimates that exports to the EU, its primary customer, could ultimately plummet by approximately 50–60%. Before Russia’s full-scale invasion in 2022, metallurgy and mining were cornerstones of the Ukrainian economy, accounting for roughly 10% of national income and a third of its exports. The EU’s current policy, Ryzhenkov argues, treats Ukraine ‘in the same way as all of the other importers into the European Union,’ despite the ongoing conflict.
EU Stance and Wartime Realities
A spokesperson for the European Commission affirmed that the EU ‘took into account the difficult situation’ of Ukraine when formulating its steel policy. The Commission also noted that Ukraine’s specific steel quota guarantees exports, though it acknowledged this was at a ‘level lower than in the past years.’ Furthermore, the EU stated it had ‘offered compensations’ to its largest suppliers, including Ukraine, asserting that ‘Despite the war effort, Ukraine remains an important exporter of steel to the EU.’
However, Ryzhenkov’s account paints a grim picture of operational realities. All of Ukraine’s steel mills have endured bombardment since the conflict began in 2022, with strikes ‘intensified significantly recently.’ He recounted a harrowing period in September when, for the first time in about 150 years, ‘no single tonne of steel produced’ in Ukraine. The human cost has also been immense, with almost 800 Metinvest workers killed since the war started. The company has taken measures to protect its workforce, ‘improved the covered areas’ at its mills, and designed safety procedures, but Ryzhenkov conceded, ‘Unfortunately, you cannot cover a whole steel mill to avoid it being damaged.’
Logistical Hurdles and Bleak Outlook
Beyond the direct impact of hostilities, Ukraine’s steel industry faces severe logistical challenges. Ryzhenkov highlighted that the war has effectively cut off access to most markets outside the EU. ‘We are in a dire situation when we don’t have logistics to access any other market apart from the EU,’ he explained. In this context, ‘cutting our available market by 60%, that doesn’t help for the industry to survive.’
Looking ahead, Ryzhenkov anticipates a brutal period. He expects the coming winter to be ‘one of the hardest in our history,’ underscoring the urgent need for stable and accessible export markets. The Metinvest CEO’s plea for a ‘carve out’ for Ukraine reflects a desperate bid to ensure the survival of an industry that is not only an economic pillar but also a symbol of national resilience in the face of relentless aggression.
