Metinvest seeks Ukraine exemption from tighter EU steel limits

Metinvest challenges EU steel limits as quota falls 47%

Ukraine’s Metinvest wants an exemption from European Union steel import restrictions after the bloc reduced its annual duty-free allowance to 18.3 million tonnes. Chief executive Yuriy Ryzhenkov made the case to BBC Business as Ukrainian producers warned that their exports to the EU could eventually shrink by 50–60%.

The new allowance is 47% below the 2024 level, BBC Business reported. It covers steel entering the EU from overseas, rather than Ukrainian supplies alone, and includes allocations for individual countries. Brussels introduced the restrictions to shield EU steelmakers from lower-priced competition, including shipments from China and Turkey.

War damage compounds Ukraine’s dependence on European buyers

The commercial stakes extend beyond Metinvest, one of Ukraine’s largest steel businesses. Before Russia launched its full-scale invasion in 2022, mining and metallurgy generated approximately 10% of Ukraine’s national income and one-third of its exports, according to BBC Business. The EU is the leading destination for Ukrainian steel.

Ukraine’s free-trade agreement with the EU does not prevent Brussels from applying additional trade-defence measures. That leaves steel producers exposed to restrictions despite the wider agreement governing commerce between Ukraine and the bloc.

Production has also come under direct military pressure. BBC Business reported that every Ukrainian steel mill had suffered bombing since the full-scale invasion began. Ryzhenkov said attacks had recently become substantially more frequent and that, at one point in September, steelmaking across the country stopped completely — something he said had not happened for about 150 years.

The human cost for Metinvest has been severe: nearly 800 employees have died since the war began, BBC Business reported. That loss sits alongside the physical damage and interruptions confronting the company’s operations.

Brussels defends Ukraine’s allocation as Ryzhenkov seeks different treatment

Ryzhenkov’s objection centres on the rationale for treating a country at war alongside other overseas suppliers. Speaking to BBC Business, he argued that the restrictions failed to reflect Ukraine’s circumstances and that continued European sales were essential to keeping the industry operating.

The European Commission disputed the suggestion that Ukraine’s position had been overlooked. A spokesperson told BBC Business that its circumstances had informed the policy and said Ukraine’s dedicated allocation secured a volume of exports, while acknowledging that the permitted amount was below previous years. The Commission also said compensation had been offered to major suppliers, including Ukraine.

Within Metinvest’s mills, Ryzhenkov said the company had upgraded sheltered spaces for employees during air raids. He described safety procedures and compliance with them as the practical means of reducing danger, while stressing that protecting an entire steelworks from damage was not possible.

Winter risks leave alternative export routes in focus

Ryzhenkov expects the coming winter to rank among the most difficult the company has faced, according to BBC Business. He said Ukraine lacked the logistics needed to serve markets other than the EU, limiting producers’ ability to redirect sales if European access contracts. His exemption request therefore concerns an outlet that cannot readily be replaced, rather than a choice between equally accessible destinations.

For businesses planning European sales or sourcing arrangements, the policy creates a practical distinction between access under a trade agreement and the volume that can enter without duty. Expansion plans built around Ukrainian steel need to account for the applicable allocation, not simply assume that a free-trade relationship settles the import position.

That quota question is separate from the compliance work involved in the EU’s carbon border regime, covered in Market Entry Wire’s reporting on customs readiness for EU carbon border rules. For companies entering European supply chains, treating trade allowances and border compliance as distinct planning tasks helps avoid overlooking either requirement.