EU sanctions on Russia aim to reduce Kremlin revenues and limit resources available for financing the war against Ukraine. However, an investigation by SVT News shows that Russian steel continues to enter the European Union through existing exemptions. Around 3.7 million tons of Russian steel slabs were imported into the EU during 2025. The trade continues despite broader restrictions on Russian steel imports.
The Long-Term Costs of Sanctions Exemptions
Torbjörn Becker, Director of the Stockholm Institute of Transition Economics (SITE) at the Stockholm School of Economics, warns that such exemptions are costly over time. He argues that individual companies can benefit financially while European taxpayers carry wider costs. These include increased defense spending and continued support for Ukraine.
The Economic Case for Tighter Sanctions
The economic balance, Becker argues, strongly favors tighter sanctions. He estimates that replacing cheap Russian steel slabs could cost the EU around €100–200 million. At the same time, Russia could lose between €1 billion and €2 billion in export revenues.
In other words, the economic impact on Russia could be roughly ten times the cost to Europe. Becker therefore stresses that policymakers should consider more than the immediate European costs of sanctions. They should also assess the long-term price of allowing Russian export revenues to continue.
The EU has reached a political agreement to end the steel exemption after 2028, although the decision is not yet binding.
To explore the full analysis and Torbjörn Becker’s commentary on EU sanctions and Russian steel imports, read the complete SVT News article.
Explore the Sanctions Hub
For further analysis of Russia sanctions, visit the Sanctions on Russia & Russian Economic Retaliation portal. The platform brings together data, research, and expert analysis for researchers, journalists, and policymakers.
Explore the Sanctions Timeline for a chronological overview of Western sanctions and Russian countermeasures.
Visit the Evidence Base for the latest publications and research reports examining sanctions, economic developments, and policy impact.
The Media Highlights section features the latest media commentary from Torbjörn Becker and other members of the expert team.
Further Reading on Sanctions Against Russia
For a broader perspective on the effectiveness and economic impact of sanctions, read the FREE Policy Brief Sanctions on Russia: What Have We Learned?. The analysis examines how sanctions have affected Russia since its full-scale invasion of Ukraine. It also discusses lessons for sanctions design, implementation, and enforcement.
