EU set to extend grace period for some Russian steel imports

European Union member states are set to agree to a four year extension of a grace period for sales of some types of Russian steel before a complete ban on the imports, according to documents seen by Bloomberg News.

The EU banned imports of rolled, semi-finished steel products from Russia in Oct. 2022, but granted a grace period for shipping some goods through Oct 1, 2024. That period would be extended through Oct. 2028, the documents show. The measures still need to be adopted by member states and could change before then.

The grace period allows Russia’s top steelmaker, NLMK PJSC, which is not under EU sanctions, to ship steel slabs for processing at a joint venture with the investment arm of the Walloon government in Belgium that owns plants across Europe that are dependent on NLMK’s slabs for finished product output.

The joint venture asked for the extension of the grace period in return for investing in a new electric arc furnace that should make the output more ecologically friendly, S&P Global Commodity Insights reported in October. NLMK press service didn’t reply to a request seeking comment.