Sanctions don't work: EU imports Russian metal worth €2.5 billion in year
Photo: The EU imported €2.5 billion worth of Russian metal (Getty Images)
In 2024, the European Union imported 5.34 million tons of products from the Russian mining and metallurgical complex. Despite sanctions, Russian producers continue to earn significant revenues from exports to the EU, with the total amount exceeding €2.5 billion last year, the Ukrainian consulting company GMK Center reports.
This indicates the weak effectiveness of current restrictions and the existence of exceptions that allow Russian metallurgy to be exported to EU markets.
"Semi-finished products accounted for the largest volumes of supplies, amounting to 3.15 million tons, up 1.1% compared to 2023. The key consumers of Russian semi-finished products were Belgium (1.22 million tons (+5.4% y/y)), Italy (781.92 thousand tons (-9.9%)), Denmark (467.39 thousand tons (+6.5%)), and Czech Republic (425.65 thsd tonnes (+11%)). The EU countries also imported 1.03 million tons of pig iron from Russia, which is 26.9% less than in 2023," the report says.
Thus, despite the sanctions imposed by the European Union, imports of Russian metal products remain significant. Some countries, particularly Italy, Belgium, and the Czech Republic, continue to actively purchase products from Russia.
"Ukraine, as a candidate and future member of the European Economic Area, could replace Russian suppliers. Ukrainian producers are able to increase production and exports of semi-finished products, cast iron, and DRI, which would allow the EU to reduce its dependence on Russian raw materials and at the same time support Ukraine’s economy. However, this requires both additional investment in production capacity and the political will of European countries," GMK Center concludes.
Earlier, Vladyslav Vlasiuk, the Presidential Commissioner for Sanctions Policy of Ukraine, stated that in 2023, Russia exported mining and metallurgical complex (MMC) products worth €3 billion to the EU, and in the first nine months of 2024, this figure reached another €2.1 billion. Therefore, sanction exceptions for certain groups of Russian goods, especially metallurgical products, should be lifted.
Vlasiuk reminded that MMC enterprises directly support the Russian defense industry. For example, the Russian NLMK Group, owned by oligarch Vladimir Lisin, supplies metallurgical slabs to the EU, while also being the monopoly producer of special electrical steel in Russia, which is critically important for Russia's defense industry.
