In 2023, Russia exported mining and metallurgy complex (MMC) products to the EU worth EUR 3 billion, and in the first nine months of 2024, an additional EUR 2.1 billion, while simultaneously undermining Ukrainian enterprises. This is unjust, and such sanctions exceptions should be revoked starting January 1, 2025, stated Ukrainian President's representative for sanctions policy Vladislav Vasyuk.
"During a briefing yesterday with ambassadors from EU countries, I specifically articulated the injustice of sanction exemptions for certain groups of Russian goods instead of supporting Ukrainian ones. Metals, silicon products, drilling equipment... Instead of sanctioning Russia and purchasing Ukrainian products, billions continue to flow to Russia," Vasyuk wrote on Facebook.
He emphasized that MMC enterprises directly support the Russian military-industrial complex. In particular, the Russian NLMK Group, owned by oligarch Vladimir Lisin, supplies metallurgical slabs to the EU, while being a monopoly producer of special electrical steel in Russia (with a market share close to 100%), which is critically important for the defense industry.
Vasyuk reminded that the EU continues to purchase semi-finished products from Russia, taking advantage of existing sanctions exceptions—extended transitional periods and comfortable quotas—which have a triple negative impact on Ukraine. He clarified that the export of Russian MMC products represents an indirect export of approximately 4 billion cubic meters of natural gas, adding extra income to "Gazprom".
Moreover, Russian products in the EU market are displacing Ukrainian iron ore products and pig iron, resulting in losses for Ukraine exceeding EUR 1.6 billion.
In this regard, Vasyuk proposed to shorten the transitional period for slabs, pig iron, and DRI to December 31, 2024, while currently, quotas for their import are valid until the end of September 2028, although they will be reduced annually.
"It is also necessary to impose personal sanctions against Lisin and the NLMK Group, considering their significance for Russian aggression. Lisin is a long-time associate of Putin and, according to open sources, facilitates the operation of Russia's shadow fleet. Sectoral sanctions should also be applied to other goods and individual sanctions against 'Volgoburmash'," the president's representative believes.
Speaking about the issue of silicon carbide exports, he pointed out that Volzhsky Abrasive Plant (VAP), one of the key producers of silicon carbide, continues to export its products to EU countries, creating potential threats to the sanctions policy.
At the same time, Vasyuk added, the Ukrainian enterprise "Drohobych Drilling Equipment Plant" has been subjected to missile attacks aimed at its physical destruction to replace its products in the EU market with similar products from "Volgoburmash".
"The recent attacks resulted in the deaths of 5 people, injuries to 30, and the complete destruction of the plant's production capacities. Meanwhile, Russian Volgoburmash is increasing its export presence in EU markets, supplying drilling equipment to the oil and gas and mining industries," the Ukrainian president's representative pointed out.