The EU is set to cut steel quotas by nearly half — FT
The European Union plans to reduce steel import quotas by 47% starting July 1. Ukrainian manufacturers and officials warn that such a decision will hurt exports during the war and could cost Ukraine more than €1 billion in revenue. The reduction in quotas will complicate access to the EU market and increase pressure on an industry that is key to the country’s foreign exchange earnings.
This was reported by the Financial Times.
The European Union has announced that starting July 1, it will cut steel import quotas by nearly half, and a 50% tariff will apply to volumes exceeding the established limit. The decision is attributed to a global surplus of production capacity and a sharp rise in steel imports, which has already led to the loss of tens of thousands of jobs in the European steel industry.
However, Ukrainian producers warn that the new restrictions could effectively shut them out of the European market. “They will completely destroy any possibility for Ukrainian companies to supply products to the European market,” said Oleksandr Vodoviz, head of the CEO’s office at Metinvest. According to him, the company, which accounts for more than half of Ukraine’s steel exports to the EU, sees no real alternatives to the European market.
Under WTO rules, the new restrictions will apply to all EU trading partners, including Ukraine, despite the free trade agreement between Kyiv and Brussels. Ukrainian officials also emphasize that the new quotas contradict the existing trade agreement between Ukraine and the EU, which does not provide for tariff restrictions.
The European Commission is currently negotiating with Ukraine and about 20 other countries regarding the allocation of new quotas. According to the FT, during preliminary talks in Geneva, the European Commission offered Ukraine a duty-free quota of 713,000 tons of steel. For comparison: in 2025, Ukraine exported 2.65 million tons of steel products to the EU, and the EU itself remained the main market for Ukrainian steel.
The Ukrainian side warns that such a reduction—approximately 70% compared to last year—could cost the country up to €1 billion in export revenue at a time when Russia is intensifying attacks on Ukrainian infrastructure and industry.
The European Commission stated that it would “take into account Ukraine’s difficult situation” and promised a separate quota for Ukrainian suppliers, albeit “at a lower level than in previous years.”
A Metinvest representative also noted that Ukrainian steelmakers effectively have no way to quickly pivot to other markets. “We’re looking at various markets, but Russians and Turkey are already there. Their electricity is ten times cheaper, and they aren’t being shelled or bombed every day. We don’t see a way to compete with them in their key markets. Our main market has always been Europe,” he explained.
At the same time, calls are already being made in the European Parliament to grant Ukraine special status. MEP Karin Karlsson, who is responsible for this dossier, stated that Ukraine should receive “very special treatment” as an EU candidate country facing an exceptional security situation. “We have very high expectations that the European Commission will take this into account,” she emphasized.
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