Metinvest says loopholes in European sanctions allow Russia to continue steel supplies
Russia continues to sell steel products to the EU countries, despite the sanctions imposed earlier, containing a ban on the purchase of such Russian-made goods. This is due to the existence of loopholes that level the impact of the sanctions on the economy of the Russian Federation. This opinion was expressed by Metinvest Group CEO Yuri Ryzhenkov in an interview with the Italian edition of Corriere della Sera.
“There is the eighth package of sanctions that the EU introduced against Russia in October, including a ban on the supply of steel products to the EU. But, unfortunately, there is a loophole that gives many Russian producers a two-year delay in importing Russian semi-finished products to the European Union,” he said.
According to Ryzhenkov, in this situation, European importers who buy Russian semi-finished products at lower prices, have an advantage over other producers in the EU who refuse to buy from the Russians.
“This is an unpleasant situation. Russia is unfairly taking market share from more prudent producers such as Metinvest and other European producers who refuse to buy from the Russians because they do not want to sponsor the Russian economy. I hope this sanctions loophole will be closed in the next two packages,” Ryzhenkov said.
He added that Metinvest's factories in Italy and Britain were also at a disadvantage. Until February 24, they received semi-finished products from the Group's Mariupol plants, and after the capture of the city by the Russians, they were forced to look for new suppliers.
Currently, the largest importers of Russian steel are Italy and Belgium. In the latter, in particular, there is a subsidiary of one of the Russian producers.
Ryzhenkov confirmed that Metinvest is applying to the EU with a request to tighten sanctions against Russian steel products.
“Leaving this loophole, you actually put conscientious European manufacturers who do not want to sponsor aggression at a disadvantage. The EU puts at a disadvantage its players who want to support Ukraine. Therefore, we believe that it would be better if this loophole were eliminated,” the CEO of Metinvest concluded.