EU quota system ‘could kill Ukrainian steel industry’, boss says

New EU limits on steel imports could destroy Ukraine’s industry and deal a big blow to the country’s budget as it defends itself against Russia, according to the head of its biggest steelmaker. Yuriy Ryzhenkov, the chief executive of Metinvest, said the new EU quota system due on 1 July could “kill the Ukrainian steel industry”. The EU has introduced the protectionist measures in the face of a long-running global glut of steel caused by China. The EU halved the quotas of steel that can enter the bloc tariff-free, while also doubling the tariff to a prohibitive 50% on all imports above each country’s allocation. The EU’s decision has prompted a scramble among trade partners to try to negotiate a large enough share of the quota for their own steel industries. That includes the UK , where the industry has warned of an “existential threat” if it does not receive enough access to its largest export market. For Ukraine the economic threat from its military ally is exacerbated by the war, which has cut off some of its previous alternative markets and pushed the country’s steelmakers to integrate more closely with Europe . They have also faced the extra costs of constant attacks on infrastructure since the start of the war in February 2022. “In our view it’s an unfair approach,” Ryzhenkov said. “Ukraine does not present a significant threat to the EU steel industry. It’s simply not big enough. “Killing off one of the functioning industries doesn’t seem wise. …