The International Working Group on Russian Sanctions, co-chaired by Head of the Office of the President Andrii Yermak and former U.S. Ambassador to Russia Michael McFaul, proposes a complete embargo on all metallurgical products, but with a long transition period.
This is stated in the Action Plan 2.0 on Strengthening Sanctions against the Russian Federation, Ukrainian News Agency reports.
“We propose imposing a full embargo on all iron and steel products without exemptions, but with long transition periods (as in the case of EU imports of slabs, which have been permitted up to a quota of more than 3.7 million tons per year until 2024). We also recommend the introduction of a ban on steel products processed in third countries using steel originating from Russia among all members of the sanctions coalition. Because this ban will be in effect in the EU as of September 30, 2023, all other countries in the sanctions coalition should do the same,” the document says.
It is noted that Countries should also close important loopholes in the current regime by extending full sanctions on metals companies that supply raw materials to the Russian military for armaments and fund the war through significant tax payments (e.g., Alrosa, Evraz, Mechel, Metalloinvest, MMK, Norilsk Nickel, NLMK, Polymetal, Polyus, Rusal, Severstal, TMK, Uralsteel, and VSMPO-Avisma).
“Sanctioning Russian metals is important for two reasons. First, they account for a significant part of Russia’s export revenues. In 2021, Russia exported ferrous metals and related products for a total of $32.9 billion. Almost one-third (29.4%, or $8.5 billion) of the total volume of exported ferrous metals was supplied to the EU market. Second, Ukrainian metallurgical products can become an alternative to imports from Russia for the EU and other markets. Ukraine can partially replace the supply of cast iron, iron ore, and billets if logistical problems are solved (according to Metinvest),” the document says.
As Ukrainian News Agency earlier reported, the Yermak-McFaul group proposes to reduce the upper limit of the oil price by USD 15 per barrel to USD 45/barrel of crude oil (barrel) with a target of USD 30 per barrel.
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