New sanctions for steel from Russia

New sanctions for steel from Russia are adopted by the EU and the United Kingdom. These sanctions prohibit the import of certain products that incorporate iron or steel from Russia and that are processed in „third” countries.

Turkey has reduced its exports of reinforced concrete steel. This is caused by the impossibility of using tags from the Russian Federation for the manufacture of products intended for delivery abroad.

The sanctions in the United Kingdom will come into force on September 30.

The EU restrictions will be implemented in three stages – from 30 September, 1 April 2024 and 1 October 2024. Steps established according to the specific classification code of imported iron and steel products.

Phased implementation allows a period for compliance measures to be implemented. Therefore, there is no transition period attached to the new restrictions.

Regulations on steel from Russia

EU regulations require importers to provide proof of country of origin for iron and steel inputs used in the processing of products in third countries. This requirement aims to ensure that materials of Russian origin are not incorporated into final products imported into the EU market.

Failure to provide such evidence may result in EU customs authorities refusing to accept imported iron and steel products.

Anna Doherty, senior trade and customs specialist at IOE&IT, said the regulation „allows a window in which companies could import goods that were processed in third countries but contained specific iron and steel products from Russia.” This window is due to close on September 30.

It is important for companies to understand their commodity codes and the requirements of the country of origin. While performing due diligence with their suppliers.

Stacy Keen, sanctions expert at Pinsent Masons, said: “There is currently little information on how customs authorities will approach the new requirements. The German customs office has issued guidelines on the type of documents required. The obligation to provide evidence can be fulfilled by: invoices, delivery notes, quality certificates. Documents indicating the non-Russian origin of the products.

Russian businessmen

Russian billionaire Viktor Rashnikov lost the fight with the European Union court against his inclusion on the list of sanctions, after the invasion of Ukraine. The EU Court of Luxembourg, the EU’s second highest court, rejected his appeal. Rashnikov is the president of Magnitogorsk Iron & Steel Works, a Russian steel and pipe manufacturer.

Dozens of Russian businessmen, including people like Roman Abramovich, addressed the courts of the bloc in Luxembourg. They are trying to free themselves from sanctions and regain control over their assets.