New European Union restrictions on steel imports may severely damage Ukraine’s steel sector and reduce government revenue at a time when the country is defending itself against Russia, according to the leader of its largest steel producer. Yuriy Ryzhenkov, chief executive of Metinvest, stated that the quota system scheduled for 1 July could eliminate the Ukrainian steel industry. The measures respond to a prolonged global oversupply of steel linked to China. The EU cut tariff-free import quotas in half and raised the tariff on excess volumes to 50 percent. Trade partners are now seeking larger quota shares. The United Kingdom has also expressed concern about limited access to its main export market. Ukraine faces added pressure because the conflict has closed some alternative outlets and increased reliance on European markets. Producers have incurred higher expenses from repeated infrastructure strikes since February 2022. Ryzhenkov described the policy as unfair, noting that Ukraine poses little threat to EU producers due to its smaller scale. He argued that eliminating a viable industry is unwise and that Ukraine receives no special consideration. Steelmakers warn that lost tax income, potentially hundreds of millions of pounds, would weaken the war effort. Metinvest, controlled by billionaire Rinat Akhmetov, ranks among the country’s top private taxpayers. Additional carbon border charges will apply to imports made with older blast furnace methods. Ryzhenkov said Metinvest cannot afford the billions of euros needed to convert its plants to electric arc furnaces during the war. Its facilities near Zaporizhzhia and Kamianske operate at roughly three-quarters and two-thirds capacity. The company contends with frequent rail damage and unstable power supply, relying on its own generators. It has also lost key assets, including the Mariupol works and a coking coal mine in Pokrovsk.
