Ukraine prepared to replace Russia in exporting cast iron and iron ore to EU market

Ukraine has an opportunity to replace Russia in the export of cast iron and iron ore to the European market.

Source: the study Review of sanctions restrictions on Russian cast iron and iron ore, as reported by the press service of the Ministry of Economy

Details: Russia now ranks second in the world in exports of cast iron and ninth in terms of iron ore exports.

Despite this, the European Union refrained from imposing sanctions on imports of these categories of materials. However, such sanctions can both provide additional opportunities for Ukrainian producers and cause even greater instability for the Russian economy, as the ministry emphasised.

Quote: "As of September 2023, five blast furnaces with a total capacity of about 6-7 million tonnes are idle in Ukraine. Now they work at reduced capacities, by about 50%. According to data for January-July 2023, this year Ukraine can increase the export of cast iron to about 1.5 million tonnes," said Oleksii Sobolev, Ukraine’s Deputy Minister of Economy.

Customs tariffs on iron ore and cast iron have already been introduced in the US and the UK. The United Kingdom set a customs tariff of 35%, which led to a decrease in imports of Russian cast iron and iron ore by US$51.8 million in 2022 compared to 2021.

The United States also introduced a number of additional customs duties and, in 2023, stopped the import of cast iron from Russia entirely.

Background:

The Indian Ministry of Agriculture and Farmers' Welfare included Ukraine in the list of countries that do not process grain with fumigants containing methyl bromide and thus exempted Ukrainian exporters from paying additional penalties.

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