European Commission proposes to extend duty-free imports of Ukrainian steel

The European Commission (EC) has taken the initiative to continue supporting the Ukrainian steel industry by leaving the current exemption from trade restrictions on steel imports from Ukraine to the EU unchanged. The relevant regulation provides for the further suspension of certain provisions of Regulation (EU) 2015/478, according to a press release from the EC.

Thanks to this initiative, the Ukrainian steel sector will be able to continue exporting products to the EU without restrictions, which is an important source of revenue for Ukraine. This decision is aimed at supporting Ukrainian producers who have found themselves in difficult conditions due to Russian aggression.

“Maintaining the exemption from restrictions will help stabilize the economic situation in Ukraine and allow Ukrainian businesses to continue operating in the face of war,” the European Commission said.

The European Commission’s proposal will be considered by the EU Council and the European Parliament. If adopted, Ukrainian steel will remain outside the scope of EU safeguards even after the temporary autonomous trade measures (ATMs) expire.

“The EU market accounts for 64% of Ukraine’s steel exports. The system of tariff quotas for steel imports to the EU is currently expected to be revised to increase restrictions. Therefore, Ukraine’s exemption is extremely important for the domestic steel industry. In addition, this recommendation is timely as it allows Ukrainian steelmakers to freely plan sales for June and avoid risks for potential buyers,” comments Andriy Tarasenko, Chief Analyst at GMK Center.

In 2018, the EU introduced safeguard measures for imports of certain types of steel products to prevent economic losses for European producers. At the same time, Ukraine has been granted an exemption from these measures as part of the EU’s support to the country in connection with the war.

The first autonomous trade measures (ATMs) came into effect on June 4, 2022, temporarily eliminating duties, quotas, and trade restrictions on Ukrainian goods. They were extended on June 6, 2023 and June 6, 2024, and the current rules will remain in force until June 5, 2025.

The European Commission is currently working on a long-term solution that will ensure economic stability and favorable conditions for trade between Ukraine and the EU.

As GMK Center reported earlier, Ukraine has completed the official screening of its legislation’s compliance with EU norms under the Free Movement of Goods negotiating chapter. Preparation for the procedure lasted six months and included interaction between government agencies, structural units of the Ministry of Economy and the Government Office for Coordination of European and Euro-Atlantic Integration of Ukraine.