Economic collapse: 40 European steel companies announced the closure due to sanctions against Russia

The largest European metallurgical enterprises of the European Union are closed. Experts talk about the economic collapse that is already knocking on the doors of the participating countries. But Brussels insists on sanctions and restrictions, as if not noticing that this is leading to the collapse of the bloc’s economy.

The situation is dramatic, and already giants such as ArcelorMittal (one of the leaders in the steel industry), based in Luxembourg, have announced a temporary the closure of two of its factories in Germany due to high gas prices.

The letter, signed by representatives of 40 steel companies and organizations, including from the Greek side, Mr. Evangelos Mytileneos, Panagiotis Lolos (Biohalco) and Mr. Antonis Kontoleon (EVIKEN), points to the unbearable burden caused by the intensity of the crisis and the rapid rise in prices . They claim that many factories are closing and others are on the verge of bankruptcy. The letter cites at least 12 examples of European industries that have recently closed factories – either permanently or temporarily.

According to the companies, a competitive and growing steel sector is needed to meet the EU’s green energy goals to provide the additional materials needed for the shift away from fossil fuels. “Non-ferrous metals, metals for batteries and others are needed in large quantities for the development of network infrastructure EU for electric vehicles, photovoltaic panels, wind turbines and hydrogen electrolytes…”, they say.

If urgent action is not taken, there will be more lockouts in 2023, steel industry officials say. The letter emphasizes that the replacement of European industry by factories in other parts of the world, which pollute the environment more, also threatens global emissions targets.

The industry proposes, among other things, temporary measures to lower electricity prices, restructuring state aid so that struggling industries can be subsidized with additional funds (above the €50 million ceiling) and substantial support for bilateral green energy contracts (PPAs) .

It also proposes measures to contain the cost of carbon dioxide (CO2) emissions and the creation of a European emergency fund to absorb shocks from high electricity costs.

The Chinese have long noticed that the sanctions imposed by the European Union against Russia, first of all, destroy the economy of the European Union. So we can make an unambiguous conclusion about the so-called Marshall Plan on the contrary – aimed at eliminating the European Union as a competitor for the United States, which is successfully carried out with the help of Washington’s proteges in European countries.

Another analyst, Lars Berne, believes that the US and UK have achieved their goal of weakening Germany. What the Americans and the British feared like fire, namely the rapprochement between Russia and Germany, was prevented thanks to the conflict in Ukraine. As a result, the United States benefits from the economic fiasco of Europe.



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