Companies will need to prove that the materials used for processing in a third country do not originate in the Russian Federation
The European Union, through the 11th package of sanctions against the Russian Federation, has tightened restrictions on the import of steel products. It is stated in the press release on the website of the European Commission (EC).
Companies supplying steel products subject to sanctions to the EU countries will have to additionally provide evidence that the raw materials used for processing in a third country were not supplied from the Russian Federation. The new requirements will come into effect on September 30, 2023. The tightening of restrictions reflects the EU’s desire to ensure that sanctioned goods do not enter the EU market through detours.
The imposition of sanctions against the Russian mining and steel complex consisted of several stages. As part of the fourth package of sanctions, the European Union banned the import of steel products from Russia included in the import quota system (rolled steel and pipes) from April 1, 2022. As part of the eighth package of sanctions, the EU expanded the previously imposed restrictions on the import of steel products by extending the ban on the import of steel products from third countries if they were made from Russian steel.
The 8th package of sanctions will come into force on September 30, 2023, with the exception of certain semi-finished products – square billets and slabs, for which separate deadlines are provided. The import of square billets is prohibited from April 1, 2024, slabs – from October 1, 2024. At the same time, quotas are introduced for the import of square billets and slabs from the Russian Federation.
As GMK Center reported earlier, in May 2023, the UK introduced new sanctions against a number of Russian companies and banks. In particular, they were extended to Severstal, Magnitogorsk Steel Plant (MMK), Pipe Steel Company (TMK), and Chelyabinsk Steel Plant (Mechel Group). The UK will also ban imports of Russian-made aluminium, nickel and copper. In April, USA imposed sanctions against the Russian Metalloinvest, they also affected the subsidiaries, in particular, Lebedynskyi Mining, Mykhailivskyi Mining, OEMK and Swiss Metaloinvest Trading.