EU introduced restrictions on the import of Russian pig iron

On December 18, the EU Council adopted the 12th package of economic and individual sanctions in connection with Russia’s ongoing war against Ukraine. This is stated in a statement on the website of the European Council.

«With this 12th package, we are putting forward a robust set of new listings and economic measures which will further weaken Russia’s war machine. Our message is clear, as I already stated when I chaired the informal Foreign Affairs Council in Kyiv: we remain steadfast in our commitment to Ukraine and will continue to support its fight for freedom and sovereignty,» Josep Borrell, High Representative for Foreign Affairs and Security Policy, said.

In particular, the new package of sanctions includes a ban on imports of goods such as pig iron, including mirror pig iron, direct reduced iron, copper and aluminum wire, foil, and aluminum pipes worth a total of €2.2 billion per year.

The new EU decision also adds Switzerland to the list of partner countries that apply a set of restrictive measures against imports of pig iron and steel from Russia, as well as a set of import control measures that are essentially equivalent to those applied in the European Union.

Imports of pig iron and direct reduced iron (DRI) of Russian origin will be banned from 2026, and supplies will be limited to certain quotas from December this year until the end of 2025.

The 12th package of sanctions also includes, among other things, a ban on direct or indirect imports, purchase or transportation of diamonds from the Russian Federation, as well as a ban on imports of liquefied propane gas (LPG) with a 12-month transition period, and a ban on re-export to Russia or re-export for use in Russia of particularly sensitive goods and technologies in export contracts.

As GMK Center reported earlier, in January-September 2023, the European Union increased imports of pig iron from the Russian Federation by 40% y/y – up to 1.25 million tons. At the same time, in 2022, the import of the these products by European consumers amounted to 1.17 million tons, that is, in only 9 months of 2023, the EU increased the consumption of Russian pig iron by 6% compared to 12 months of 2022. The supply of Ukrainian pig iron to the EU for January-September 2023 amounted to only 160.94 thousand tons, which is 10% less y/y. At the same time, Ukraine has enough capacity to replace Russian suppliers of pig iron on the European Union market.