The EU steel quota will hit Ukrainian steelmakers affected by the war hard – Interpipe CEO

Luca Zanotti emphasized that the Ukrainian steel industry poses no threat to Europe

The European Union’s introduction of a new trade barrier aimed at reducing steel imports will deal a significant blow to Ukraine’s war-torn steel industry, and the application of a separate tariff quota to Ukraine contradicts the exemption granted to our country last year as support in the war against Russian aggression.

This was stated by Luca Zanotti, CEO of the Ukrainian industrial company Interpipe.

In an interview with the British news agency Reuters, the top executive pointed out the inconsistency in the decisions of official Brussels: less than a year ago, the European Union granted Ukraine an exemption from steel quotas for a period of three years, until June 2028, yet now Ukrainian steel will be subject to new restrictions.

“They cannot, on the one hand, say, we’re going to ​support Ukraine, and on the other hand, damage the industrial sector, which is a very important engine of this country,” Luca Zanotti emphasized, adding that the EU quota could lead to an irreversible decline in Ukraine’s economy.

He also noted that, according to the Organization for Economic Cooperation and Development (OECD), Ukraine’s steel production capacity has fallen by 80% since the start of Russia’s large-scale invasion.

“We have a labor shortage. We lack sufficient electricity supply. We certainly have the highest electricity prices in Europe,” the CEO stated.

Luca Zanotti noted that the Ukrainian steel industry poses no threat to Europe.

As a reminder, the EU will double import duties on steel to 50% starting July 1. At the same time, the quota allowing for the import of certain quantities without taxation will be reduced by nearly half.