Regulatory Compliance updates June 2025

July 3, 2025

CBAM: Deal with Council to simplify EU carbon leakage instrument

Parliament and Council today agreed on changes to the CBAM. These changes are part of the “Omnibus I” simplification package presented on 26 February 2025, which aims to simplify existing legislation in the fields of sustainability and investment. Co-legislators supported a new de minimis mass threshold whereby imports up to 50 tonnes per importer per year will not be subject to CBAM rules. It replaces the current threshold exempting goods of negligible value. The new threshold exempts the vast majority (90%) of importers − mainly small and medium-sized enterprises and individuals − who import only small quantities of CBAM goods. The climate ambition behind the mechanism remains unchanged, as 99% of total CO2 emissions from imports of iron, steel, aluminium, cement and fertilisers will still be covered by the CBAM. The co-legislators included safeguards to ensure this figure and to prevent circumvention of the rules. Co-legislators also agreed on changes to simplify imports covered by the CBAM such as the authorisation process, the calculation of emissions and verification rules as well as the financial liability of authorised CBAM declarants, while strengthening anti-abuse provisions. Source

EU mission proposes a plan to phase out Russian gas and oil imports

The Commission has put forward a proposal to gradually and effectively stop the import of Russian gas and oil into the EU by the end of 2027. This will help the EU become more energy independent, improve the security of the energy supply, and boost the Union's energy independence and competitiveness. This proposal follows the REPowerEU roadmap, the EU’s strategy to completely remove Russian oil, gas and nuclear energy imports from EU markets. It includes steps for phasing out pipeline gas and liquefied natural gas (LNG), as well as measures to facilitate the complete stop of Russian oil imports by the end of 2027. The remaining Russian gas volumes will be phased out as follows:

  • Russian gas imports under new contracts will be prohibited as of 1 January 2026
  • Imports under existing short-term contracts will be stopped by 17 June 2026
  • An exception is made for short-term contracts for pipeline gas delivered to land-locked countries and linked to long-term contracts. These will be allowed until the end of 2027.
  • Imports under long-term contracts will be stopped by the end of 2027

For oil, EU countries still importing Russian oil will need to prepare diversification plans to phase out all remaining oil imports, in view of a complete stop by the end of 2027.

The phase-out of Russian fossil fuels will make an important contribution to the clean energy transition and the EU’s overall competitiveness. It is possible because the EU has sufficient alternative suppliers in the global gas market, a well interconnected Union gas market and the availability of sufficient import infrastructure in the EU. In addition, today's proposal has built-in safeguards to respond to the reality of the gas markets while providing companies with a solid legal framework. Source

EU Commission restricts Chinese participation in medical devices procurement

The European Commission decided to exclude Chinese companies from EU government purchases of medical devices exceeding €5 million. This measure follows the conclusions of the first investigation under the International Procurement Instrument (IPI), and allows no more than 50% of inputs from China for successful bids. This response is proportionate to China's barriers, while ensuring that all the necessary medical devices are available for the EU healthcare system. Exceptions will be in place where no alternative suppliers exist. The measures are consistent with the EU's international obligations, including under the WTO framework, as the EU has no binding procurement commitments vis-à-vis China. The measure seeks to incentivize China to cease its discrimination against EU firms and EU-made medical devices and treat EU companies with the same openness as the EU does with Chinese companies and products. This is a response to China's longstanding exclusion of EU-made medical devices from Chinese government contracts. Source

EU Commission fights circumvention of tariffs on imports of graphite electrode systems

The European Commission countered the circumvention of anti-dumping measures on imports of graphite electrode systems from China by extending their application to imports of artificial graphite in blocks or cylinders. Graphite is a critical material for helping the EU to achieve its digital and green technology transitions. The level of duty to be applied on imports of artificial graphite from China is 74.9%. The application of the anti-dumping measures is being extended following a Commission investigation, which found that the measures applied to graphite electrode systems (GES) from China were being circumvented by imports of artificial graphite – the main input material – from China into the EU. The artificial graphite was then further processed into GES. Little economic justification was found for this practice other than the avoidance of anti-dumping duties on imports of GES from China. The extension only applies to artificial graphite that is used to produce GES. Hard blocks and cylinders are the textures and forms of artificial graphite used to produce GES. Artificial graphite in powder or paste forms used in other applications, including in lithium-ion batteries for electric vehicles and in consumer electronics such as smartphones and PCs, will not be subject to the extended measures. Source

EU acts against unfairly subsidised optical fibre cables from India

Today the Commission imposed countervailing duties ranging from 3.7% to 8.1% on imports of optical fibre cables from India. The measures aim to protect from unfair trading practices the EU’s optical fibre cable industry, which employs over 5,000 people across the European Union and is crucial for advancing our digital agenda.  Today’s countervailing measures were imposed after an anti-subsidy investigation found that unfairly subsidised imports from India were harming EU producers. The duties come on top of anti-dumping measures on optical fibre cables from India, as well as both anti-dumping and countervailing measures on the same product from China. Optical fibre cables make high-speed internet possible and as such are critical for the EU’s transition to advanced electronic communications. The European optical fibre cable industry has a key role to play in the implementation of the EU’s digital agenda. The measures imposed today, as well as the previously imposed ones, aim to ensure that the EU optical fibre industry is not weakened by unfair trading practices and that it can continue to compete on an equal footing. Source

EU Customs Reform

The European Commission has put forward proposals for the most ambitious and comprehensive reform of the EU Customs Union since its establishment in 1968. The proposed measures will simplify customs requirements for businesses, better target risks at EU borders, and ensure more transparency in e-commerce. Source

EU: New import surveillance tool to help EU prevent harmful trade diversion

The European Commission has set up a new surveillance tool to help protect the EU against sudden and potentially disruptive surges in imports. This system aims to prevent harmful trade diversion, which occurs when a significant amount of goods that cannot enter other markets due to high tariffs and other restrictions are redirected into the EU. By providing fact-based information building on customs data, the surveillance tool will enable the Commission to swifty identify any such import surges and take early and effective action to protect the EU market from adverse impacts. To further strengthen this initiative, the Commission is inviting EU manufacturers, industry associations and Member States to review the import trends available on the tool website and provide further market intelligence and data on the industry's economic situation. This will further assist the Commission in identifying specific products that may be at risk due to significant import increases.

A dedicated task force to address trade diversion

The new tool builds on EU Commission President Ursula von der Leyen's initiative to set up an import surveillance task force in order to protect EU markets and industries. This group is tasked with addressing the challenges posed by trade diversion, particularly in the wake of recent turbulence in the global trading system

The task force's work is focused on providing timely and informed insights to support the Commission's decision-making process. It has previously developed an internal dashboard, which monitors all imports to the EU and, through statistical analysis, also identifies products that have seen a potentially harmful increase of imports. Focusing on the period since 1 January 2025, the task force will keep monitoring imports and other indicators on an ongoing basis, with the results published online regularly.

Additionally, the Commission is setting up a dialogue with China to track possible trade diversion and ensure that any notable developments are duly addressed. This proactive approach will enable the EU to stay ahead of emerging trends and address any emerging risks. By working closely with key partners and stakeholders, the Commission is demonstrating its commitment to safeguarding the EU's economic interests and promoting a level playing field for European industries. Source

EU Unveils 18th Sanctions Package Against Russia

On June 10, 2025, the European Commission, led by Ursula von der Leyen and High Representative Kaja Kallas, unveiled the 18th sanctions package—an expansive set of measures targeting Russia's energy revenues, financial sector, defense industry, and supply chains. The package is designed to choke Russia’s war funding—cutting energy revenues, isolating financial conduits, and disrupting military manufacturing. EU officials emphasize sanction “accumulation”: after the 17th round, oil exports dropped ~30% via targeted routes.

Summary of key sanctions:

Energy measures

  • Ban on Nord Stream 1 & 2 transactions—halting all direct or indirect dealings with the pipelines.
  • Oil price cap slashed from $60 to $45 per barrel, aimed at diminishing Russia’s oil revenues.
  • Import ban on refined products originating from Russian crude via third countries
  • Expansion of the “shadow fleet” blacklist—adding 77 oil-carrying vessels to prevent evasion of sanctions.

Financial Sector Pressure

  • Transaction bans extended to 22 more Russian banks, including those using SWIFT and financial operators in third countries.
  • Restrictions on the Russian Direct Investment Fund and related investment vehicles.

Military‑industrial & Tech Controls

  • A €2.5 billion export ban targeting machinery, metals, plastics, chemicals, and dual-use technologies pivotal for weapons and drone production. Source: European External Action Service

United Kingdom: Steel trade measures call for evidence

Steel is essential for a modern and secure economy underpinning many sectors, from construction to advanced manufacturing. The UK steel industry provides high-quality jobs in local economies (around 40,000 jobs across the country and around 61,000 jobs in the upstream supply chain in 2024) and plays a vital role in infrastructure, manufacturing and defence supply chains, which are critical for economic growth. However, the UK steel industry faces a challenging global trading landscape due to significant steel overcapacity. This artificially and unfairly lowers prices, reducing profitability and hindering investments in modern and lower-carbon technologies. In this global context, increased dependency on steel imports then impacts the security and resilience of UK supply-chains and exposes the UK to the risk of price fluctuations and disruption.

The UK government has taken steps to protect our steel industry from unfair trading practices through the use of trade remedies. This includes 15 anti-dumping and 2 anti-subsidy measures on imports from 7 individual countries, and a global safeguard measure on steel imports. This safeguard is set to expire in June 2026 in line with World Trade Organization (WTO) rules.

Stakeholders are invited to provide input on:

  • their current steel production, imports, and exports of steel products
  • the effect of the current steel safeguard on domestic production and steel imports
  • how the government should continue to support the steel industry from overcapacity

Stakeholders are not invited to provide input on the following measures as they are not within scope of this Call for Evidence:

  • the UK Carbon Border Adjustment Mechanism (CBAM) as it is an environmental policy on which the government has run separate consultation processes including with the steel industry
  • energy support for energy-intensive industries like steel

broader, non-trade-related support for the steel sector, which is being considered as part of the government’s Steel Strategy. For more details, please refer gov.uk

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