An MEP called on the EU to take Ukraine’s special status into account in the new steel trade regime
The steel industry is of critical importance to Ukraine’s ability to win the war against Russia. This was stated by Karin Karlsbro, Vice-Chair of the European Parliament’s Committee on International Trade, during a debate on the European Commission’s introduction of a new, stricter regime for steel trade with third countries.
According to her, Ukraine is currently exempt from the EU’s current safeguard mechanism on steel imports. This exemption is set to remain in effect until the summer of 2028. At the same time, the new trade measure provides for the application of a separate tariff quota for Ukraine, the allocation of which must take into account the country’s “specific security challenges.”
“The steel industry is of fundamental importance to Ukraine’s ability to win the war against Russia. Today I want to clarify what we have agreed upon regarding tariff quotas for Ukraine, and its special status must be upheld. We must view Ukraine as a future member and strategic partner of the EU, not as a threat,” Karlsbro stated.
The MEP noted that Ukraine’s steel industry has been and remains a strategic target of Russian attacks. Last week, she visited enterprises in Kryvyi Rih, Dnipro, and Kamianske, where, she said, she saw the war’s impact on the industry. Some production facilities are located in occupied territories or have been destroyed, while enterprises that continue to operate are incurring significant additional costs.
“The fact that the Ukrainian steel industry, despite all the difficulties, has managed to function under these circumstances should be encouraged, not punished,” noted the Vice-Chair of the European Parliament’s Committee on International Trade.
According to Interpipe, Karlsbro also visited Interpipe Steel, the company’s modern electric steelmaking complex. During the visit, she was shown the full cycle of “green” steel production.
The company emphasized that starting July 1, Ukrainian steelmakers may face new restrictions on product shipments to the EU. According to Interpipe’s assessment, the negative impact could be comparable to the loss of steel production capacity in 2022, as a decline in exports could lead to reduced production and a blow to the economies of frontline regions.
CBAM remains a separate challenge for the industry. Interpipe states that the company is already losing customers due to the European Commission’s mistake in implementing the carbon mechanism, despite the fact that Interpipe Steel adheres to the Green Deal philosophy and the EU’s strict environmental requirements.
As reported by GMK Center, following the introduction of CBAM, Ukrainian steelmakers lost over 1.1 million tons of export orders for steel products from the EU as early as the first quarter. Due to the near-total loss of the European market as a result of additional CBAM payments, ArcelorMittal Kryvyi Rih has already reduced its production capacity—a foundry and mechanical plant, as well as a blooming mill—and cut 3,400 jobs at these facilities.
Source: https://gmk.center
