The European Parliament has approved new protective measures on steel imports to the EU, which include a nearly 50% reduction in duty-free quotas. According to Kyiv Independent, these regulations, set to take effect in July 2026, could severely impact Ukrainian steelmakers who already struggle under the weight of war, energy shortages, and the CBAM carbon adjustment mechanism.
The new rules limit duty-free imports to 18.3 million tons per year, with a 50% tariff applied to any volumes exceeding this cap. For Ukraine, the EU is currently the primary export market, accounting for 79% of steel exports in 2025. Industry experts at the GMK Center note that domestic production has already faced a 60-70% decline due to existing green transition regulations.
Representatives from major companies like Metinvest have warned that alternative markets are virtually non-existent due to exorbitant logistics costs and wartime production risks. Current proposals from the European Commission regarding a specific quota for Ukraine—around 713,000 tons—are deemed insufficient by domestic producers who operate under constant threat of Russian shelling and power grid failures. As companies like ArcelorMittal Kryvyi Rih try to stabilize their operations, the uncertainty surrounding these quotas adds another layer of instability to the Ukrainian economy.
European officials are currently debating whether a special regime or an exemption for war-torn Ukraine is possible. Advocates in the European Parliament argue that the country should not be penalized by environmental levies while its industrial infrastructure is being systematically destroyed by Russian missiles. Balancing the EU’s green agenda with the necessity of supporting Ukraine’s economic resilience remains a critical point of diplomatic tension. Without a clear path for quota relief, the survival of one of Ukraine’s most vital export sectors remains under significant threat.