In the shadow of an ongoing war, Ukraine's steel industry — already scarred by bombardment and loss — now faces a second wound from an unexpected direction: European Union tariffs designed to shield against Chinese overproduction have ensnared Ukraine in their net, threatening to collapse exports by more than half. For a nation where steel once anchored a third of all foreign earnings, the loss of market access is not merely economic hardship but an existential question about survival and reconstruction. The irony is sharp: a country fighting to join the European order finds itself penalized b
EU steel tariffs threaten Ukraine's war-battered economy, industry warns
Nearly 800 Metinvest workers killed since war began; ongoing Russian bombardment of steel mills forces workers to shelter during air raids.
Access to the European market is crucial for survival
Mark
So the EU put these tariffs in place to stop cheap Chinese steel from flooding the market. Why did Ukraine get caught in that net?
Mimi
Because the EU set a blanket cap on all duty-free steel imports—18.3 million tonnes per year, down 47 percent from before. Ukraine has a free-trade agreement with the EU, but that agreement doesn't actually prevent the EU from imposing separate trade protection measures. So even though Ukraine should theoretically have better access, it got bundled in with everyone else.
Luke
But wait—the source says Ukraine does have a country-specific quota. So it's not completely without protection.
Mimi
That's true. The EU did carve out some country-specific quotas, and Ukraine is one of them. But Ryzhenkov's point is that the quota is lower than what Ukraine was exporting before, and the overall effect is still a 50 to 60 percent collapse in exports.
Mark
Why does that matter so much? Steel is just one industry.
Mimi
Before the war, steel and mining made up 10 percent of Ukraine's GDP and a third of all exports. The EU is their biggest customer. So you're talking about a massive chunk of the economy that's already been hammered by Russian bombardment.
Luke
How hammered? The source says every mill has been hit, but what does that actually mean for production?
Mimi
In September, Ukraine produced zero tonnes of steel for the first time in about 150 years. Zero. And nearly 800 workers at just one company—Metinvest—have been killed since the war started.
Mark
So Ryzhenkov is asking for an exemption?
Mimi
Yes. He's calling for at least a carve-out for Ukraine, separate from the broader tariff regime. The argument is that Ukraine isn't China or Turkey—it's a country at war that needs access to its main market to survive.
Luke
Did the EU respond to that request?
Mimi
The Commission said it took Ukraine's situation into account and offered compensations to its largest suppliers. But Ryzhenkov clearly doesn't think that's enough. He says Ukraine has no other markets to access because of the war and logistics, so cutting EU access by 60 percent leaves almost no path forward.
Mark
What happens if the tariffs stay in place?
Mimi
Ryzhenkov said he expects the coming winter to be "one of the hardest in our history." Without access to the EU market and without other options, the steel industry faces potential collapse.
The Pulse
- EU steel import caps, slashed by 47% from 2024 levels, have placed Ukraine in the same restrictive category as China and Turkey — despite a standing free-trade agreement and an active war on its soil.
- Ukraine's steel sector, which underpinned 10% of pre-war GDP, has been hammered from two sides: Russian missiles have struck every steel mill in the country, and September marked the first month in roughly 150 years with zero steel production.
- Nearly 800 Metinvest workers have been killed since 2022, and those who remain work beneath the threat of air raids, sheltering in covered bunkers that cannot protect the mills themselves from destruction.
- With no viable logistics to reach markets outside the EU, a 50–60% collapse in European exports leaves the industry, in the words of its own leadership, with almost no path to survival.
- Ukraine is pressing the EU for a formal carve-out exemption, arguing it is categorically different from the cheap-steel exporters these tariffs were built to restrain.
- The European Commission has acknowledged Ukraine's hardship and points to a country-specific quota, but concedes it was set lower than historical levels — a concession the industry says is far from enough as winter approaches.
In the shadow of an ongoing war, Ukraine's steel industry — already scarred by bombardment and loss — now faces a second wound from an unexpected direction: European Union tariffs designed to shield against Chinese overproduction have ensnared Ukraine in their net, threatening to collapse exports by more than half. For a nation where steel once anchored a third of all foreign earnings, the loss of market access is not merely economic hardship but an existential question about survival and reconstruction. The irony is sharp: a country fighting to join the European order finds itself penalized by it, bundled alongside the very competitors it is nothing like.
Yuriy Ryzhenkov, chief executive of Metinvest, one of Ukraine's largest steel producers, arrived at a grim realization this autumn: the EU's new tariffs on imported steel — crafted to guard against cheap Chinese competition — were poised to devastate Ukraine's already battered economy. The bloc had capped duty-free steel imports at 18.3 million tonnes annually, a 47% reduction from 2024 levels, and Ukraine found itself grouped alongside Turkey, China, and every other exporter, its free-trade agreement notwithstanding. "Ukraine has been bundled together into those measures without any consideration for the situation Ukraine is in," Ryzhenkov told the BBC.
The stakes are enormous. Before Russia's full-scale invasion, metallurgy and mining represented roughly 10% of Ukraine's national income and a third of all exports, with the EU as the primary buyer. Under the new restrictions, the industry estimates exports to Europe could fall by 50 to 60%. For a nation already hemorrhaging economically, this is not a setback — it is a potential collapse.
The war has already done grievous damage. Every steel mill in Ukraine has been struck by Russian bombardment, and in September, for the first time in approximately 150 years, the country produced not a single tonne of steel. Nearly 800 Metinvest workers have been killed since 2022. Workers shelter in covered bunkers during air raids, though, as Ryzhenkov noted, no structure can shield an entire mill from missile strikes.
The European Commission acknowledged Ukraine's difficult circumstances and pointed to a country-specific quota within the new regime — but admitted it was set lower than in previous years. For Ryzhenkov, such measures fall far short. With no logistics to reach markets beyond Europe, a 60% cut to EU access leaves the industry with almost nowhere to turn. He expects the coming winter to be among the hardest in Ukraine's history.
His ask of the EU is pointed: grant Ukraine a formal carve-out, recognizing that a nation at war, fighting for its survival, is not the same as the cheap-steel exporters these policies were designed to restrain. Whether Brussels will draw that distinction — or leave Ukraine paying the price for a policy built to solve a different problem — remains the open and urgent question.
Yuriy Ryzhenkov, the chief executive of Metinvest, one of Ukraine's largest steel producers, arrived at a stark realization this autumn: the European Union's new tariffs on imported steel, designed to protect member states from cheap Chinese competition, were going to devastate his country's already fragile economy. The EU had recently capped duty-free steel imports at 18.3 million tonnes per year—a 47 percent reduction from 2024 levels. Ukraine, despite having a free-trade agreement with the bloc, found itself caught in the same restrictive net as Turkey, China, and every other steel exporter. "Ukraine has been bundled together into those measures without any consideration for the situation Ukraine is in," Ryzhenkov told the BBC, his frustration evident. The tariffs were, he argued, fundamentally unfair.
The numbers tell the story of what's at stake. Before Russia's full-scale invasion in 2022, metallurgy and mining accounted for roughly 10 percent of Ukraine's national income and a third of all exports. The European Union was—and remains—the country's primary customer. Now, with the new restrictions in place, Ukraine's steel industry estimates that exports to the EU could fall by 50 to 60 percent. For a nation already bleeding economically from war, this represents a catastrophic blow. Ryzhenkov was direct about what this means: "Access to the European market is crucial for survival. The restrictive measures that have been put in place by the authorities in the European Union, they don't help."
The war itself has already ravaged Ukraine's steel sector. Every one of the country's steel mills has been struck by Russian bombardment since 2022, but the attacks have intensified sharply in recent months. In September, for the first time in approximately 150 years, Ukraine produced not a single tonne of steel for an entire period. The human toll has been severe: nearly 800 workers at Metinvest alone have been killed since the conflict began. The company has invested in covered shelters at its mills where workers can take refuge during air raids, but there are limits to what infrastructure can protect. "Unfortunately, you cannot cover a whole steel mill to avoid it being damaged," Ryzhenkov said.
The European Commission, in response, acknowledged that it had "taken into account the difficult situation" of Ukraine when designing its steel policy. The EU pointed out that Ukraine does have a country-specific quota under the new regime, which guarantees some level of steel exports. But the Commission also admitted this quota was set "at a level lower than in the past years." It noted that it had "offered compensations" to its largest suppliers, Ukraine among them—though Ryzhenkov's comments suggest these measures fall far short of what the industry needs.
What makes this moment particularly acute is the absence of alternatives. Ukraine's geography and the ongoing war have left it with virtually no logistics to reach markets beyond the European Union. Cutting access to that market by 60 percent, Ryzhenkov said, leaves the industry with almost no path forward. He was blunt about what lies ahead: "We are in a dire situation when we don't have logistics to access any other market apart from the EU and cutting our available market by 60%, that doesn't help for the industry to survive." He expects the coming winter to be "one of the hardest in our history."
Ryzhenkov has called on the EU to grant Ukraine at least a carve-out—a separate exemption from the broader tariff regime. The argument is straightforward: Ukraine is not China or Turkey. It is a nation at war, fighting an invasion, and its steel industry is essential to both its immediate survival and its eventual reconstruction. The question now is whether the European Union will see the distinction, or whether Ukraine will remain bundled with the rest of the world's cheap steel producers, paying the price for a policy designed to solve a different problem entirely.
Notable Quotes
Ukraine has been bundled together into those measures without any consideration for the situation Ukraine is in— Yuriy Ryzhenkov, CEO of Metinvest
We are in a dire situation when we don't have logistics to access any other market apart from the EU and cutting our available market by 60%, that doesn't help for the industry to survive— Yuriy Ryzhenkov
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