EU Sets New Steel Import Quotas Starting 1 July
The European Union will halve tariff-free steel import quotas and raise the tariff on excess imports to 50 percent beginning 1 July. Ukrainian steelmakers say the limits will reduce government revenue during the ongoing war with Russia. Metinvest chief executive Yuriy Ryzhenkov warned the measures could eliminate the country's steel industry.
financialpost.comThe measures respond to a global steel surplus linked to Chinese production. Yuriy Ryzhenkov, chief executive of Metinvest, said the new quota system could kill the Ukrainian steel industry. He stated that Ukraine does not present a significant threat to the EU steel industry because it is simply not big enough.
Ukrainian steelmakers argue the quotas will deprive the government of tax revenues equivalent to hundreds of millions of pounds. Metinvest is the country's largest private sector taxpayer. The company operates two steel plants near Zaporizhzhia and Kamianske that are running at about three-quarters and two-thirds of capacity.
Regular damage to railways and inconsistent electricity supply have added costs since the war began in February 2022.
Ryzhenkov said Metinvest cannot invest the billions of euros needed to convert its plants to cleaner electric arc furnaces because of the war. The company has already installed its own generators to restart operations after blackouts. The quotas will apply on top of the EU carbon border adjustment mechanism that penalizes steel made with blast furnace technology.
Transparency
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