EU paid Russia 682 million euros for steel in eight months, with slab loophole keeping money flowing, and big consumers lobbying to keep it open — analysis

Four years of sanctions have not closed the door through which Russian metal still reaches Europe. The EU imported 1.6 million tons of Russian iron and steel products in the first eight months of 2026, paying 682 million euros, down 54% in value year on year, GMK Center, a Ukrainian-based consulting company, reports, citing Eurostat data.

Every euro spent on Russian metal is revenue for a state waging war on Ukraine, and the EU has banned most of it: pig iron, direct-reduced iron, iron ore and ferroalloys. Yet one category still flows almost untouched: semi-finished steel, mostly slabs, which made up 97.8% of the imports, or 1.56 million tons worth 670 million euros.

Volumes dropped 55% year on year after the full ban on Russian pig iron and DRI took effect on 1 January 2026, and no pig iron, ferroalloys, iron ore, or DRI reached the EU from Russia in the period, the center found. Iron ore and ferroalloys fall under sectoral limits, and the largest Russian producers are subject to corporate sanctions.

The slab loophole that keeps the money flowing

Slabs are the gap in the wall. Belgium took 767,700 tons of Russian semi-finished steel, nearly half the EU total, and Italy 191,800 tons, the center said.

Demand still outstrips the rules, with a slab quota for the year to September 2026 standing at nearly 3 million tons and effectively used up within four months, the data showed. Scrap was the only other notable inflow, at 41,300 tons worth 11.7 million euros, down about a third.

A ban that keeps getting postpone

The door is closing slowly, and not without a fight. The quota falls to 2.6 million tons for the year to September 2027б and to 2 million for the following year, the center added, yet attempts to halt Russian slab imports early have failed because the biggest consumer countries lobby against it.

Earlier, the Kiel Institute for the World Economy reported that the EU paid Russia €317 billion in goods since February 2022. The sum is €116 billion more than the €201 billion the bloc extended to Ukraine in financial aid over the same period.