Key Facts
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EU Extension: The European Parliament has backed a three-year renewal of Ukraine’s duty- and quota-free access for metal products. Final approval by the EU Council is pending.
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U.S. Tariff Threat: A 25 % Section 232 duty on Ukrainian steel was reinstated in 2024, jeopardising up to one-third of Interpipe’s exports.
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Canadian Deadline: Ottawa’s temporary exemption expires in early June; without action, a 37.4 % anti-dumping duty will snap back.
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Industry Stakes: Ukrainian metallurgists warn production could fall 30 % if North American doors close.
EU Move Buys Time—but Isn’t Enough
“During active hostilities, tariff relief literally kept plants alive,”
— Denys Morozov, First Deputy CEO, Interpipe
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The EU’s “trade visa-free” regime first introduced in 2022 helped offset lost markets in Asia and the Middle East.
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Companies like Interpipe used the window to retain staff, pay taxes, and rebuild war-damaged facilities.
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Example: Interpipe paid UAH 5.5 bn in taxes last year, including UAH 2 bn from its front-line Nikopol plant.
North American Market Risks
| Market | Current Status | Impact if Duties Return |
|---|---|---|
| United States | 25 % Section 232 duty reinstated | Loss of key OCTG & line-pipe sales; U.S. buyers face shortages |
| Canada | Temporary waiver ends June | 37.4 % anti-dumping duty would kill all shipments |
Morozov stresses that U.S. pipe demand already outstrips domestic supply, making Ukrainian imports a win-win.
Diplomatic Channels in Play
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U.S.–Ukraine Free-Trade Talks
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Kyiv’s trade office has initiated dialogue to scrap the 25 % tariff.
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Canadian Exemption Appeal
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Industry asks for a three-year waiver mirroring the EU decision.
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G7 Coordination
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Finance and trade ministers are pressed to maintain unified support mechanisms for critical industries.
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What’s at Stake for Ukraine’s Economy
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Employment & Taxes: Steel and pipe mills are major regional employers and tax contributors.
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Defense Supply Chain: Domestic mills provide strategic metals for military production.
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Foreign Exchange: Steel exports are vital for FX inflows amid wartime budget gaps.
Bottom Line
The EU’s extended duty-free regime is a lifeline—but Ukrainian steelmakers cannot survive on European orders alone. Securing U.S. and Canadian tariff relief is essential to prevent a 30 % contraction in output and safeguard thousands of jobs in one of Ukraine’s most war-exposed sectors.
