Russian steelmakers maintain strong positions in EU market despite sanctions – Metinvest

Despite the sanctions, Russian steel companies maintain a competitive position in the EU market, especially in the supply of slabs, said Olexander Vodoviz, Head of the Office of Metinvest CEO, at the Kyiv International Economic Forum (KIEF).

“Russia continues to hold a strong position in the supply of slabs to the EU. For example, Italian steelmakers buy cheap semi-finished products from Russia. We can’t buy these cheap slabs and are losing out in competition,” he explained.

According to Vodoviz, Ukrainian producers need a level playing field, including access to financial grants, as European companies have, to meet CBAM’s environmental requirements and compete with Russian competitors. Significant funds allocated to modernize European steel mills allow them to adapt to new standards and secure a favorable market position.

“European companies receive hundreds of millions of euros for environmental projects. We also want to have fair conditions for competition,” he emphasized.

The head of the Metinvest CEO’s office emphasizes that even with EU sanctions, Russian companies have more favorable conditions, which allows them to maintain their positions in the EU market. This complicates Ukraine’s access to the European market and raises concerns about the future competitiveness of Ukrainian products.

As GMK Center reported earlier, in January-August 2024, the EU imported 3.9 million tons of steel raw materials of Russian origin. Semi-finished products accounted for the bulk of imports – 2.14 million tons, pig iron – 949.07 thousand tons, and direct reduced iron – 718.83 thousand tons. Total import costs amounted to €1.87 billion.