Surge in Russian steel imports

The EU cannot do without Made in Russia raw materials. In May 2024, EU countries imported steel products from Russia worth over 373 million euros, the highest record since Russias military operation in Ukraine began in 2022. Despite the ongoing Russia-Ukraine conflict and multiple rounds of Western sanctions against Russia, Russian steel exports have shown significant growth, demonstrating its competitiveness and irreplaceability in the global market.

Major import categories and countries

Russias key metallurgical exports include semi-finished steel (€175 million) and ferroalloys (€81 million). Italy emerged as the largest importer of Russian steel, with purchases increasing 1.6-fold to €120 million. The Netherlands followed, with May imports surging 7.3-fold to €78.6 million, indicating strong EU market demand for Russian steel products.

Russia regains status as key exporter

With such import volumes, Russia regained its position as the EUs top ferrous metal exporter, trailing only South Korea (€366.4 million) and India (€353.8 million). This demonstrates Russias ability to maintain significant market share in global steel trade despite geopolitical tensions and economic sanctions.

Spain resumes imports

The growth in Russian exports can be partly attributed to Spains renewed interest. After a three-month pause for reflection, Spain resumed imports of Russian ferrous metals in April. That month, Spain imported 21,300 tons of Russian iron and 8 million euros worth of steel. This shows that even under sanctions pressure, market demand continues to drive countries to reassess and resume imports of Russian steel.

Overall trade volume declines

While May saw record Russian steel imports, overall EU-Russia trade volume dropped to €5.6 billion in April (latest data) - the lowest since 2000. This confirms sanctions impact, yet steels essential nature maintains growth despite restrictions.

Sanctions versus market demand dynamics

EU nations continue balancing sanctions with market realities. As fundamental material for manufacturing and construction, steel demand cannot be quickly replaced by alternative suppliers. Despite sanction pressures, market needs compel continued reliance on Russian steel, revealing complexities in global supply chain diversification.