#Eu Trade

Ukraine has effectively halted steel production for the first time in a century following strikes on Kametstal and EU trade restrictions. Up to half a million jobs and a significant portion of exports are under threat.

According to Bloomberg and DSM, in the first eight months of 2026, 56% of Russia's spending on medicines went to imports—almost the same as in 2022. Five years of war and the push for import substitution have not changed structural dependence on Western pharmaceuticals.

Ukraine's Metallurgists' Federation demands to maintain the zero quota on scrap export until an effective export duty is restored, which on September 16 fell from 180 to 10 euros per ton. Scrap collectors, conversely, have already called for opening shipments to the EU.

Former WTO Director-General Pascal Lamy called for exempting Ukrainian steel from the CBAM carbon levy, citing the war. Decisions on the mechanism's rules may be made within the next three to six months.

Ukrainian metallurgy is going through a deep crisis: after the strikes, Zaporizhstal, Kametstal and ArcelorMittal Kryvyi Rih have been shut down, steel production fell by 57.3% in August, and new EU quotas could cut exports by 60%. The industry, which accounts for 40% of the railway's and the ports' workload, has found itself "on the brink of survival".

Economist Andriy Zablovskyi called for equalizing scrap metal export conditions in Ukraine and cracking down on re-export schemes via the EU, which deprive the budget of billions of hryvnias and create a raw material shortage for metallurgists.

ICC Ukraine Vice President Bohdan Ivanjuk stated that Ukrainian industry is losing up to 70% of the MMC's foreign-currency earnings and is demanding that the state cut tariffs, revise CBAM and EU quotas, and provide targeted financing for large enterprises.

GMK Center estimates Ukraine's GDP losses from CBAM at $372 million in 2026, rising to $1.754 billion by 2030; export losses could reach $7.248 billion. NAEIU is pushing for a special regime for Ukraine for the period of the war.

Alexander Kalenkov, President of the "Ukrmetallurgprom" Association, stated that export restrictions on scrap have ensured a normal supply of raw material to metallurgists, and called for a 180 euro/tonne duty on supplies to the EU, where a zero rate currently applies.

Ukrainian metallurgy faces a critical crisis in August 2026: the EU has cut steel quotas, while Russia blocks ports. Experts predict a 60% drop in exports and losses of up to 12 percentage points of GDP.