Sanctions on products originating in Russia

21-09-2023

From 30 September 2023, EU restrictions applied to the import and purchase of certain iron and steel products processed in third countries using Russian-origin iron or steel. The measures introduced additional origin-evidence requirements for importers, including businesses operating within the fastener supply chain. Until now, sanctions for the fasteners sector focused specifically on products from Russia. The sanctions do not affect intra-EU trade and do not cover goods within the EU before 30 September.

In the restrictive measures against Russia, the EU imposed a far-reaching ban on importing and purchasing certain steel products processed in third countries. By third countries, we mean all countries other than EU member states and Russia.

Evidence Requirements for Importers

The importer must provide proof of the country of origin of the iron and steel inputs used to process the product in such a third country. As an importer of the goods in question to the EU, Fabory immediately carried out its due diligence. We have engaged with all our suppliers and service providers to ensure they provide sufficient proof of the steel's country of origin to EU authorities at the time of import.

Impact on the Fastener Supply Chain

The sanction requires the fastener industry to move to a new level of transparency. This will impact the required paper trail at each outsourced production stage. The required proof will affect small producers/distributors and significantly impact low-rotation and niche products.

Maintaining Continuity of Supply

Fabory is well positioned to comply with EU regulations and ensure continuity of supply. Although we anticipate some market disruption and scarcity for the affected items, the impact will be limited for most customers. In the coming period, we will continue to work with the partners who have indicated their commitment to comply with the EU regulations.

Fabory's Approach to Russian-Origin Products

Russian entities have never been part of Fabory's supplier base, and we do not stock or trade products or services of these origins. We believe sanctions help restore peace in Ukraine and the region. Along with other EU policies, sanctions are a concrete means of upholding EU values of human dignity, freedom, democracy, the rule of law, and human rights.

Related regulatory information: Learn how the Carbon Border Adjustment Mechanism affects fastener importers and customers.