Russian steel lobby still blocks Ukraine's access to EU market – Metinvest executive

Metinvest Group CEO Oleksandr Vodoviz revealed during a panel discussion at the Kyiv International Economic Forum that a Russian metallurgical lobby continues to obstruct Ukrainian metal products from entering the EU market, attempting to push Ukraine away. The Russian lobby is present in Brussels, actively hiring companies to hinder Ukraine's access to the European market.

When Metinvest executives visit certain EU offices, a Russian delegation often leaves them. Following the war's outbreak, Europe imposed sanctions, causing Russia to stop supplying nearly all steel products to Europe. Ukraine managed to partially replace these supplies. However, Vodoviz noted that efforts are underway to bring Russia back to the European market, but Russia's quotas have not been reduced.

China, historically a key market for Metinvest, has also become a challenge due to rising production costs and logistics expenses, leading to Metinvest abandoning supplies to distant markets, with Europe remaining its primary sales market. The Carbon Border Adjustment Mechanism (CBAM) carbon levy and quotas introduced in July, set at 670,000 metric tons annually, are significant barriers to entering the EU market.

Metinvest recently acquired a pipe plant in Romania, but the EU introduced quotas two months later, preventing the group from supplying Ukrainian steel to the plant for pipe production. Vodoviz expressed concerns that Metinvest may be unable to use its EU quotas due to Ukrainian plants being idled by shelling. The group's plants may be destroyed, and Metinvest may not be able to supply products while the EU could set minimum quotas for the next 10 years based on six months of quota data.