German Government Urges Complete Ban on Russian Steel Imports Ahead of Industry Summit

In anticipation of a major summit focused on the struggling steel sector, senior German officials are advocating for a total halt to steel imports from Russia. The call comes as the government prepares to convene with industry leaders and regional representatives to address the challenges currently facing the domestic steel market.

The German Vice Chancellor has emphasized the necessity for immediate action to discontinue all steel imports originating from Russia. The demand stems from concerns that certain semi-finished steel products, such as slabs produced in Russia and subsequently processed within the European Union, remain exempt from existing sanctions. Officials argue that this loophole undermines efforts to hold Russia accountable and places undue pressure on Germany's steel workforce.

German policymakers are also promoting the need for greater self-reliance within the steel industry. Calls have been made to increase domestic and European steel production, with a heightened focus on environmentally sustainable, high-quality steel. The government is urging that infrastructure projects and key industries, including automotive manufacturing, prioritize steel produced within Germany and Europe to strengthen economic resilience.

The upcoming industry summit, scheduled to be held at the Federal Chancellery, will bring together high-level government officials, including the Chancellor, Vice Chancellor, and ministers responsible for economic affairs and labor. Leaders from Germany's major steel-producing states--North Rhine-Westphalia, Lower Saxony, Brandenburg, and Saarland--are also expected to participate. The agenda will focus on safeguarding the sector's competitiveness, reviewing trade relations, and addressing the impact of energy costs on production.

The German steel industry has been under intensifying strain due to a combination of factors. Demand from key client sectors, particularly automotive manufacturing, has weakened. Rising energy prices, increased competition from low-cost imports, especially from China, and the costs associated with transitioning to more climate-friendly production methods have all contributed to the sector's challenges. Additionally, high tariffs imposed by the United States on steel imports have further complicated the industry's situation.

In response, the European Commission recently announced new protective measures for the domestic steel market. These include a significant reduction in the quota for duty-free imports and a planned doubling of tariffs--to 50 percent--for imports exceeding these quotas. The proposals are pending approval by EU member states. Meanwhile, the German federal government is working on policies to lower industrial electricity prices, aiming to improve the sector's cost structure through state-backed subsidies.

Trade unions have also weighed in on the discussion, advocating for a commitment to using domestic and European steel in public investment projects. Industry stakeholders argue that such measures are essential to preserving jobs and maintaining Germany's industrial base.

As the summit approaches, the German government reiterates its intent to provide supportive conditions and significant investments to stabilize the steel sector. In turn, companies are being urged to invest in local production and demonstrate a clear commitment to both the domestic market and their workforce.