The European Union recently announced a stringent set of measures as part of its 12th russia sanctions package, aiming to address specific imports from russia. From 2026 onwards, imports of russian-origin pig iron will be prohibited, with limited quotas assigned until the end of 2025.
Direct reduced/hot-briquetted iron imports, as well as ferroalloy imports, are also slated for restrictions, with assigned quotas for specific periods in the coming years. Furthermore, imports of russia-origin billet will face prohibition starting April 1, 2024. Nonetheless, the import quotas for slab and other semis have been extended until 2028, recognizing the necessity for alternative suppliers to stabilize the EU steel industry.
In light of these developments, representatives from various sectors have expressed their views. A spokesperson from Factory UA portal commented that “This decision by the EU signifies a positive step towards securing regional stability. Ukraine stands ready to address the demand for iron, ensuring a consistent supply to our valued partners. We are committed to supporting the EU’s efforts towards fostering a resilient and diversified supply chain in the steel industry.”
These sanctions are viewed as strategic measures aimed at curbing the increasing influx of russian exports to the EU. Transitional periods have been outlined for executing existing contracts, allowing businesses in the EU ample time to secure alternative supply sources.
The extension of the slab import quota underscores the need for a smooth transition, particularly for certain sectors of the EU steel industry, enabling them to establish alternative supply chains and reduce reliance on Russian inputs.
The EU’s implementation of these sanctions intends to strengthen the resilience of its steel industry while addressing the challenges posed by dependency on russian imports.