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FerrumFortis

Europe’s Pig Iron Predicament: Russian Quotas Near Exhaustion Amid Looming Ban

Friday, May 30, 2025

Synopsis: - European Union companies have nearly reached the 2025 annual quota for importing Russian pig iron, with Italy, Latvia, and Belgium accounting for the majority of shipments, according to Eurostat. The quota is part of the EU’s 12th sanctions package, which aims to phase out Russian imports by 2026.

European Imports Surge Despite Sanctions

Despite ongoing sanctions against Russia, European Union nations have rapidly imported nearly all of their 2025 quota of Russian pig iron within just the first four months of the year. Data from Eurostat reveals that 697,000 metric tons of pig iron were delivered to the EU between January and April, just 3,000 metric tons shy of the 700,000 metric ton cap established under the EU’s 12th package of sanctions.

The rapid consumption of the quota reflects persistent reliance on Russian pig iron by European steelmakers. Although the bloc is committed to phasing out Russian raw materials by 2026, the urgency to secure affordable supplies before the window closes has led to accelerated imports.

 

Italy Dominates Imports

Among the EU countries, Italy has emerged as the dominant importer, accounting for 524,600 metric tons of the total volume, nearly 75%. Latvia followed with 87,300 metric tons, and Belgium received 31,000 metric tons. These three countries alone were responsible for more than 90% of the bloc’s imports from Russia during this period.

Italy’s reliance is particularly noteworthy due to its extensive downstream steel and automotive industries. Steelmakers in the region continue to use Russian pig iron as a key raw material due to its availability, price point, and processing compatibility.

 

Phased Sanctions & Declining Quotas

The 12th EU sanctions package, adopted in December 2023 in response to Russia’s ongoing aggression in Ukraine, mandates a gradual reduction in pig iron imports. The quota dropped from 1.14 million metric tons in 2024 to 700,000 metric tons in 2025, with a complete ban taking effect in 2026.

This phased approach allows EU industries time to transition to alternative suppliers. However, logistical constraints, higher prices, and limited availability from other global producers are making this shift complex and costly.

 

Economic Value of Remaining Trade

The financial value of these imports remains substantial. Between January and March, the EU’s imports of Russian pig iron generated €245.4 million in trade revenue for Russian suppliers. Despite weakening global demand and lower iron prices, the volume and value of trade remain robust, underscoring the product's significance within the EU’s industrial supply chain.

Analysts suggest that firms rushed to import pig iron early in the year to avoid being caught off guard by mid-year restrictions, supply chain disruptions, or potential tightening of regulations.

 

Concerns Over Circumvention & Enforcement

While the sanctions framework is clearly outlined, there are growing concerns among EU officials that Russian pig iron could continue entering the bloc via indirect routes. Analysts warn that third-country re-export channels may be exploited to bypass the quotas. These scenarios pose enforcement challenges, especially when pig iron is processed or repackaged in intermediary nations with less transparent trade practices.

This highlights a critical enforcement gap in the sanctions regime and could undermine the EU’s long-term objectives unless border controls and customs scrutiny are significantly strengthened.

 

Key Takeaways

  • EU imported 697,000 metric tons of Russian pig iron in just four months, nearly reaching the 700,000 metric ton quota set for all of 2025.

  • Italy accounted for 75% of the total imports, with Latvia and Belgium making up the rest.

    • A complete ban on Russian pig iron imports will take effect in 2026, prompting urgent supply diversification across the EU.

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