---
title: "EU Cuts Ukrainian Steel Quotas by 60%: Metallurgy on the Verge of Losing Its Market"
description: "The EU cut Ukrainian steel import quotas by 60% starting July 2026, potentially shrinking exports by 1.3 million tonnes annually. Amid port blockades and enterprise strikes, the industry risks losing its only available sales market."
date: 2026-10-16T11:21:36.069Z
lang: en
url: https://xab.info/en/posts/eu-cuts-ukrainian-steel-quotas-metallurgy-at-risk
tags: [ukraine-steel, eu-quotas, metinvest, metallurgy, trade-restrictions]
author: "Andrey Kosynko, Darya Fomina"
publisher: "XAB.info"
---

# EU Cuts Ukrainian Steel Quotas by 60%: Metallurgy on the Verge of Losing Its Market

![Two metallurgists in hard hats inspect steel coils at the Zaporizhstal plant](https://xab.info/media/2026/10/16/es-urezal-kvoty-na-ukrainskuyu-stal-metallurgiya-na-greni-poteri-rynka/es-urezal-kvoty-na-ukrainskuyu-stal-metallurgiya-na-greni-poteri-rynka-1.webp)

## Key Points

- The EU introduced a new tariff-rate quota system on July 1, 2026, cutting limits on Ukrainian steel imports by approximately 60%.
- Estimates suggest Ukrainian steel exports to the EU could drop by roughly 1.3 million tonnes per year.
- Metinvest calls the European direction the only available option due to maritime port blockades and logistics issues.
- State budget losses from shutting down metallurgical capacities in 2026 could reach UAH 70–100 billion.

Ukraine’s metallurgical sector, operating under constant Russian strikes and a de facto blockade of maritime exports, faces a new challenge: trade restrictions from the European Union. The new rules, which entered into force in July 2026, could reduce Ukraine's steel exports to the EU by an estimated 1.3 million tonnes per year. This is reported by RBC-Ukraine with reference to a publication by Fortune.

### A 60% Reduction: What Changed in July 2026

On June 8, the EU Council finally adopted a regulation establishing a new system to protect the bloc's steel market from the consequences of global overcapacity. The document introduces an updated tariff-rate quota system for imports, providing for reduced limits and higher duties on supplies exceeding established volumes, as well as a 'melt and pour' requirement determining the country of primary smelting. The previous safeguard measure, which expired on June 30, 2026, has been replaced by a new mechanism applied from July 1. According to Metinvest CEO Yuriy Ryzhenkov, comparing the quotas allocated to Ukraine this year with last year's supply volumes, the reduction is 60%.

### The European Market Is the Only Available Alternative

For Ukrainian producers, the European direction has essentially remained the only available option due to maritime logistics issues, according to Ryzhenkov. 'If you compare the quotas allocated to Ukraine this year with last year's supply volumes, the reduction is 60%. And this is under conditions of blocked ports, when we literally have no alternative left,' he stated. Following the start of the full-scale invasion, the EU lifted restrictions on Ukrainian steel, understanding that port blockades made Europe the only available route. However, in the first half of 2026, the quotas were reinstated, effectively equating Ukraine with other non-bloc countries 'without taking into account the exceptional conditions' the industry faced due to logistics, energy supply, and personnel problems.

### Risk of Losing Steel Production

The new restrictions are compounding an already deep crisis in the mining and metals complex: industry performance dropped significantly between 2021 and 2025. 'Without a market where products can be sold, there is virtually no future,' the expert notes. Metallurgical enterprises require high capacity utilization and long-term sales markets, which is virtually impossible to ensure under current conditions. Asked whether Ukraine could lose its steel production altogether, Ryzhenkov replied: 'If nothing is done, it is almost inevitable.' The restrictions are already affecting more than just the group's Ukrainian assets; for instance, Metinvest’s pipe plant in Romania, which was supposed to receive hot-rolled coils from Zaporizhstal, has also fallen under quota pressure. Oleksandr Vodovoz, head of the CEO's office at the group, warned that in December the EU intends to assess Ukrainian supply volumes over the preceding six months and use them as a baseline for future conditions, which, given reduced exports due to strikes on enterprises, could lock in understated quotas for a period of 5 to 10 years.

### A Blow to Public Finances

The crisis in metallurgy is already having a significant impact on the budget. According to available data, in the first nine months of 2026, Ukraine's state budget undercollected about UAH 49.5 billion in taxes. By the end of the year, due to the shutdown of metallurgical capacities, losses could rise to UAH 70 billion, and under a pessimistic scenario, reach UAH 100 billion.

### Negotiations with Brussels Continue

Currently, Ukraine's negotiations with the EU on revising the quotas are ongoing. According to the publication, Brussels recognizes the exceptional situation of the Ukrainian economy, but the existing restrictions remain in force for now. Thus, the industry remains at risk: without restoring access to a stable sales market and removing trade barriers, the threat of losing competitiveness—and prospectively, steel production itself—persists.

## Fact-Check & Sources

- [Сокращение квот ЕС на импорт стали ставит под угрозу украинскую металлургию: какими будут последствия](https://www.rbc.ua/ukr/news/skorochennya-kvot-es-import-stali-stavit-1792147975.html) - Primary source: 60% quota reduction, 1.3 million tonne export risk, statements by Yu. Ryzhenkov, budget losses of 49.5/70/100 billion UAH, ongoing negotiations.
- [В Метинвесте сделали заявление о новых квотах ЕС на украинскую сталь](https://korrespondent.net/business/companies/4912922-v-metynveste-sdelaly-zaiavlenye-o-novykh-kvotakh-es-na-ukraynskuui-stal) - Confirms total import limit of ~18 million tonnes and Ukraine quota of ~600,000 tonnes; O. Vodovoz's statement on the risk of fixing understated quotas for 5-10 years and the impact on the Romanian pipe plant.
- [ЕС окончательно утвердил новый механизм квот на импорт стали](https://delo.ua/ru/news/es-okoncatelno-utverdil-novyi-mexanizm-kvot-na-import-stali-467020/) - Confirms adoption of the regulation by the EU Council on June 8, 2026, application from July 1, 2026, replacement of the previous measure (expired June 30, 2026), tariff-rate quota system, and melt and pour requirement.

## FAQ

### When did the new EU steel quotas enter into force?

The regulation adopted by the EU Council on June 8, 2026, applies from July 1, 2026, replacing the previous safeguard measure that expired on June 30, 2026.

### How much were the quotas for Ukraine reduced?

According to Metinvest CEO Yuriy Ryzhenkov, the reduction is about 60% compared to last year's supply volumes; Ukraine's total limit is estimated at roughly 600,000 tonnes against total EU imports of about 18 million tonnes.

### What are the financial consequences for Ukraine?

In the first nine months of 2026, the budget undercollected about UAH 49.5 billion in taxes according to available data; by the end of the year, losses from halted metallurgical capacities could rise to UAH 70 billion, and under a pessimistic scenario to UAH 100 billion.

### Are negotiations on revising the quotas underway?

Yes, negotiations between Ukraine and the EU on revising quotas are ongoing. Brussels acknowledges the exceptional situation of the Ukrainian economy, but current restrictions remain in force.