European Commission to allow Ukraine to continue exporting steel to EU despite restrictions about to be imposed

BRUSSELS. May 18 (Interfax) - The European Commission, when developing new steel import restrictions, will partially take into account Ukraine's challenging situation in order to continue exports, the commission's spokesperson Paula Pinho said on Monday.

"Ukraine remains an important exporter of steel to the EU, and so what we are working towards is to seeing that Ukraine receives the country specific quota, guaranteeing that its steel exports to the EU can continue, even if it may be at a level lower than in the past years. And we will in the discussions and in the decision regarding the exact quota, obviously, taking into account the very specific and challenging situation of Ukraine," Pinho said at a briefing in Brussels.

She was asked to comment on the implications for Ukraine of the upcoming EU measures to restrict steel imports, the European Commission estimates that global overproduction is harming the EU's own producers.

As The Financial Times reported, the new European restrictions could deprive Ukraine of approximately 1 billion euros in steel export revenue.

European media previously reported that the EU intends to reduce steel import quotas by 47% and impose a 50% tariff on imports above this limit, effective July 1.

Pinho explained that the new measures would apply to all EU partners, including those with which free trade agreements were concluded. These partners account for over 80% of the EU's steel imports. Only European Economic Area countries (Iceland, Liechtenstein, and Norway), already integrated into the European market, will benefit from a partial relaxation of these measures, she said.

Quotas will be negotiated individually for each country. "Specific measures" will be adopted for some countries.

"And this happens, notably in the context of the WTO," Pinho said.