Yuriy Ryzhenkov, who heads Metinvest, a major player in Ukraine's steel industry, is calling on the European Union to rethink its recent decision to impose import restrictions on Ukrainian steel. He believes Ukraine has been unjustly lumped together with countries like China in these measures meant to limit cheap imports.
Ryzhenkov voiced his discontent with the EU's stance, labeling the tariffs as 'unfair' and lacking in empathy for Ukraine's current predicaments. He stressed how vital access to the European market is for Ukraine's survival, especially in the face of ongoing conflict with Russia.
The European Union has recently imposed limits on steel imports as a protective measure for its own manufacturers. It slashed the tax-free import cap to 18.3 million tonnes a year, a steep 47% cut from 2024 levels. While certain countries have specific quotas, the broad aim is to stem the tide of cheap steel imports from countries like China and Turkey. Despite a free-trade agreement between the EU and Ukraine, the EU still holds the right to enforce separate trade protection measures.
A spokesperson for the European Commission acknowledged Ukraine's tough situation but pointed out that the specific steel quota for Ukraine still allows for continued exports, albeit at a reduced level compared to past years. The EU has also offered compensations to its largest suppliers, including Ukraine.
Ukraine's steel sector, a cornerstone of its economy, is grappling with severe challenges. Before Russia's full-scale invasion in 2022, metallurgy and mining made up about 10% of Ukraine's GDP and accounted for a third of its exports, with the EU as its biggest customer. However, the ongoing conflict has taken a heavy toll on the industry, with every one of Ukraine's steel mills having been bombed since the war began.
Ryzhenkov highlighted the increased attacks on steel mills, noting that in September, Ukraine faced a period where no steel was produced for the first time in roughly 150 years. The conflict has also resulted in the deaths of nearly 800 Metinvest workers. To protect its workforce, the company has enhanced sheltered areas at its mills for cover during air raids, though Ryzhenkov admits that 'you cannot cover a whole steel mill to avoid it being damaged.'
Looking ahead, the CEO predicts a tough winter, describing it as possibly 'one of the hardest in our history.' With limited logistical options, Ukraine is heavily reliant on the EU market, and the 60% reduction in available market access poses a significant threat to the industry's survival.
