Statistical error and unfulfilled obligations: INTERPIPE signals an underestimation of Euro quotas for seamless pipes for Ukraine by 30%
On July 1, 2026, the new steel market protection mechanism entered into full force in the European Union.
The implementation regulations, published on June 30, 2026, provide for the allocation of a separate tariff quota for Ukraine in nine product categories with a total size of 1 million 49 thousand 960 tons per year.
The Ukrainian industrial company INTERPIPE believes that a significant statistical error has negatively affected the size of the quota allocated for the seamless pipe product category in Ukraine. In addition, according to the company's own calculations, the quota does not reflect the preferential treatment for Ukraine provided for by the regulation adopted by the European Parliament on May 19, 2026.
In the product category of seamless pipes, Ukraine was allocated an annual quota of 80 thousand 670 tons. However, throughout the consultation process, the Ukrainian authorities repeatedly informed the European Commission that this figure was based on an error in the data: a significant share of Ukrainian exports to the EU during 2022-2024, as confirmed by Eurostat, was not fully reflected in the basic calculations. As a result, Ukraine's quota for this product category is at least 30% lower than it would have been if the correct data had been used.
Apart from this technical issue, INTERPIPE believes that the implementing regulations do not fully provide preferential treatment for Ukraine, a candidate country for EU membership, which is facing an exceptional security situation, as stipulated by the regulations. In particular, when calculating the part of quotas applied to the maximum assistance regime, Ukraine was treated in the same way as the main world exporters, including countries with documented excess non-market capacity. Similarly, the same methodology was applied to Ukraine as to all other FTA partners, without the differentiation explicitly provided for in the regulations.
Luca Zanotti, CEO of Interpipe:
- INTERPIPE considers the current amount of Euroquotes for steel to be a serious blow to Ukraine and the Ukrainian metallurgical industry, which continues to operate in the frontline regions in wartime conditions. In addition, the allocation of these quotas does not take into account the significant social and economic consequences for thousands of workers, their families and communities dependent on Ukrainian metallurgy. The purpose of the new safeguard mechanism is to address the problem of global non-market excess steel production capacity. In this regard, Ukraine is clearly not part of the problem.
As CEO of INTERPIPE, a war-torn company, I expect the European Commission to adjust the data in the seamless pipe category for Ukraine by the end of the third quarter of 2026.