European Parliament throws lifeline to Ukraine’s steel industry with extended trade deal

Date:

The European Parliament voted on Thursday to prolong tariff-free access for Ukrainian iron and steel, in a move hailed as vital support for the country’s war-battered economy.

The Parliament approved the extension of the Autonomous Trade Measures (ATM) regulation, first introduced in June 2022, by 354 votes to 147, with 53 abstentions. The latest renewal will suspend import duties and quotas on key Ukrainian exports until June 2028—pending agreement with the Council.

The ATM regulation, originally adopted in the wake of Russia’s invasion, has served as a crucial economic lifeline for Kyiv. With swathes of Ukraine’s industrial infrastructure under attack, the steel industry remains one of the few functioning engines of the national economy. The EU’s extension of the trade arrangement comes just weeks before the previous exemption was due to expire on 5th June.

“Ukraine’s steel industry is the backbone of the Ukrainian economy,” said Parliament’s rapporteur, Karin Karlsbro, a Swedish MEP from the liberal Renew group. “It continues to deliver, despite many workers having left the steel plants to fight on the front lines and factories being subjected to severe attacks by Russia.”

Karlsbro dismissed suggestions that the deal was an act of generosity, arguing instead that it was a “mutually beneficial exchange that strengthens both parties.”

Ukraine’s metallurgical exports—largely steel, iron, and rolled products—have long been a mainstay of its trade with the bloc. With the EU’s gesture, Brussels signals its intention not only to back Kyiv militarily and diplomatically, but to bind it economically ever closer to the West.

Still, the decision was not without controversy. Nearly 150 MEPs voted against the measure, voicing concerns over the potential impact on EU producers already grappling with inflation and energy costs.

Industry voices in Europe have expressed frustration over what they see as one-sided liberalisation. “We understand the geopolitical imperative,” said a spokesperson for Eurofer, the European Steel Association, “but the reality is that EU mills are under intense pressure from high input costs and cheap imports. There must be safeguards in place to prevent market distortions.”

The European Commission has indicated it is working on a longer-term framework to anchor EU-Ukraine trade relations beyond wartime contingencies.

Until then, Thursday’s vote underscores the bloc’s continued resolve to support Ukraine—not just with weapons and words, but with open markets too.

Main Image: Philippe STIRNWEISS © European Union 2025 – Source : EP Usage terms: Identification of origin mandatory

EU Global Editorial Staff
EU Global Editorial Staff

The editorial team at EU Global works collaboratively to deliver accurate and insightful coverage across a broad spectrum of topics, reflecting diverse perspectives on European and global affairs. Drawing on expertise from various contributors, the team ensures a balanced approach to reporting, fostering an open platform for informed dialogue.While the content published may express a wide range of viewpoints from outside sources, the editorial staff is committed to maintaining high standards of objectivity and journalistic integrity.

Share post:

spot_imgspot_img

Popular

More like this
Related