4 August 2022 – MMK, one of the world’s largest steel producers, has been placed on the sanctions list by the US government. And more and more proceedings against attempts to circumvent anti-dumping and anti-subsidy measures. Associations warn. In the end, there is the threat of heavy fines and, in the worst case, many years of imprisonment.
Russian steel group facing US sanctions
The United States recently sanctioned the Russian steel producer Publichnoe Aktsionernoe Obschestvo Magnitogorskiy Metallurgicheskiy Kombinat (MMK). MMK operates a large steel production complex in Magnitogorsk that covers the entire production chain from the preparation of iron ore to the further processing of rolled steel. The group is not only one of the largest steel producers in the world, but also one of Russia’s most important taxpayers.
Other companies and owner of MMK affected
At the same time, Russian businessman Viktor Filippovich Rashnikov (Rashnikov), the majority owner and chairman of MMK’s board of directors, has been hit with sanctions. Rashnikov is already on the sanctions lists of Australia, Canada, the European Union, Switzerland and the United Kingdom.
Companies associated with the group and its owner, MMK-Finans and Turkey’s MMK Metalurji (steel products manufacturing) are also subject to US sanctions.
Increased focus on circumvention measures
Recent months have shown that there is an increasing number of attempts to circumvent anti-dumping and anti-subsidy measures, e.g. in the United States and the European Union. This can be seen in the increase in anti-circumvention investigations alone.
Association warns against circumvention attempts
The German association FDS – Fachverband des Schrauben-Grosshandel (Professional Association of Screw Wholesalers) has also recently pointed out the great dangers that threaten to arise from attempts to circumvent anti-dumping measures. And how important it is to avoid them. https://www.fastenerandfixing.com/insight/the-german-distribution-market/
Specifically with regard to stainless steel fasteners, in 2022 the EC had initiated an anti-circumvention case against Malaysia and China.
Hot-rolled stainless steel from Turkey
Most recently, the Directorate General Trade of the European Commission launched a case against hot-rolled stainless steel imports from Turkey at the instigation of EUROFER. There are concrete suspicions that large-scale attempts have been made to conceal the actual origin of the material.
Misleading certificates of origin
In view of the increase in anti-circumvention investigations and also the statement of the FDS, it cannot be pointed out enough how important this issue is and how buyers are misled with adjusted certificates of origin.
Because in the end, there is the threat of proceedings for customs offences. Customs offences are no trifling matter and can be punished with heavy fines and long prison sentences.
Tip: Check from whom or through whom you buy
Therefore, our urgent request: check from whom or through whom you are buying. Even if it costs you one or two dollars/euros more. So that in the end you get from your supplier what you have ordered and paid for.
- Steel industry expects stable demand, iron ore prices rising
- Growing demand for raw materials in emerging countries
- Nickel futures up almost 30% since mid-July 2022
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.