The introduction of a new trade barrier by the European Union to reduce steel imports will deal a significant blow to the Ukrainian steel industry affected by the war, and the application of a separate tariff quota against Ukraine contradicts the exception granted last year to our country as support in the war against Russian aggression.
This was stated by the General director of the Ukrainian industrial company Interpipe, Luca Zanotti.
In an interview with the British news agency Reuters, a top manager pointed out inconsistencies in the decisions of official Brussels: less than a year ago, the European Union granted Ukraine an exception to steel quotas for a period of three years, until June 2028, but now Ukrainian steel will be subject to new restrictions.
"On the one hand, it is impossible to talk about supporting Ukraine, and on the other hand, to damage its industrial sector, which is the most important engine of the country's economy," said Luca Zanotti, adding that the euro quota could lead to an irreversible recession in the Ukrainian economy.
He also recalled that, according to the Organization for Economic Cooperation and Development (OECD), since the beginning of Russia's large-scale invasion, Ukraine's steel production capacity has decreased by 80%. "We have a shortage of labor. We have a shortage of physical amounts of electricity. We certainly have the highest electricity prices in Europe," the CEO said.
"The Ukrainian steel industry does not pose a threat to Europe," stated Luca Zanotti.
The EU will double the import duty on steel from July 1 to 50%. At the same time, the quota that allows certain quantities to be imported tax-free will be reduced by almost half.
