In 2025, the global metallurgical business under sanctions is experiencing tectonic shifts: according to Worldsteel data, in the past year alone, more than 18% of global metal export transactions have been directly or indirectly restricted, and the overall volume of the EU and NSDC sanctions lists has grown by nearly one-third. Unexpected fact: as a result of new sanctions from the European Commission and synchronized regimes with Ukraine, more than 70% of companies that previously considered themselves “low-risk” are now facing the need for urgent transformation of corporate structures and compliance processes.
Owners, top managers, and compliance officers face a challenge: how to not only survive but also maintain export margins under sanctions, minimize sanction risks for metallurgy, and ensure sustainability under new conditions.
In this article, I, Nikita Veremeev, share the experience of COREDO: we will analyze key changes for metallurgical companies in 2025, show how regulations in the metallurgical business and metallurgy compliance become strategic assets, and offer practical solutions for adapting to the new realities. If you want not just to follow trends but to manage them, I recommend reading the material to the end.
Changes for metallurgy in 2025: sanctions, regulation
Changes for metallurgy in 2025 are largely defined by the tightening of sanctions and increased government regulations from key global economies. New trade restrictions, updated sanctions lists, and regulatory barriers significantly change the working conditions of metallurgical companies, requiring the industry to adapt to new risks and challenges.
Expert summary: what is it?
EU sanctions against Russia: 18th package and Ukraine
The 18th EU sanctions package against metallurgy became the largest in recent years: the EU and NSDC sanctions lists were expanded, new restrictions were introduced on the export of steel, aluminum, rare earth metals, and stricter control over transactions with precious metals and stones was enforced. The synchronization of EU and Ukrainian sanctions means that even transactions through third countries now require deep partner verification and the integration of sanctions lists into business processes.
The COREDO team implemented projects to adapt metallurgical holdings’ corporate structures to new requirements:
In the face of tighter regulation, this requires even more attention to complying with AML and KYC standards, which are becoming an integral part of metallurgical companies’ operations.
AML and KYC requirements in metallurgy
Starting in 2025, updated FATF standards and EU directives on AML for metallurgical companies came into force: now KYC procedures are mandatory for all new partners, as well as regular monitoring of operations with precious metals, investment coins, and bullion.
ESG and supply chain transparency
In 2025, ESG requirements and new reporting standards become mandatory for metallurgical companies operating in the EU, UK, Singapore, and Dubai. International reporting standards require transparency of the corporate structure, disclosure of ultimate beneficiaries, and control of the entire supply chain from ore extraction to the export of finished products.
Metal exports under sanctions: risks and markets
Metal exports under sanctions inevitably face new risks and a forced reorientation of markets. Tough restrictions from the EU and other countries require companies to seek alternative routes and reduce export margins, changing the usual industry structure.
Expert summary: what is it?
Export restrictions: countries, products, banks
Sanctions 2025 metallurgy introduces direct and indirect restrictions on the export of steel, aluminum, nickel, as well as products with high rare earth metals content. Particular attention is paid to the control of counterparty banks in metal transactions:
The COREDO team successfully implemented projects to structure cross-border metal transactions through SPVs and holding companies in the EU and Asia, allowing clients to minimize the risks of payment blocking and maintain access to international supply chains.
Rules for deals with gold and diamonds 2025
Control over transactions with precious metals in 2025 has tightened: now deals with gold, diamonds, investment coins, and bullion require mandatory compliance checks and monitoring of operations with precious metals. New rules for gold and diamond transactions have been introduced, including control of jewelry operations, mandatory disclosure of ultimate beneficiaries, and integration of data into international registries.
Circumventing sanctions: alternative markets
In the context of the 2025 sanctions, metallurgy is actively seeking alternative markets: Asia, Africa, and the Middle East are becoming new centers of demand for metal products. However, schemes for bypassing sanctions in metallurgy require special caution: structuring transactions through “nesting doll” firms, alternative supply routes, and using SPVs must be accompanied by thorough due diligence and legal audits.
Sanctions risk verification: due diligence and automation
Sanctions risk verification today requires not only deep due diligence but also modern automation tools to identify potential threats at the early stages of working with counterparties.
Below are the key stages of comprehensive verification and the role of the expert summary in this process.
Expert summary: what is it?
Sanctions risks for metallurgy in 2025 demand not just formal compliance but comprehensive risk management: from counterparty checks to automation of compliance processes and integration of digital platforms for transaction monitoring.
Counterparty verification, new rules and methods
Counterparty verification metallurgy: a key element of managing sanctions risks. New requirements include mandatory compliance checks for metal transactions, integration of the EU and NSDC sanctions lists, and the use of digital platforms for counterparty verification (e.g., LIGA360).
In one of the implemented COREDO projects, automatic integration of sanctions lists into the onboarding process of new partners was introduced, allowing a client from the Czech Republic to identify potential risks at the preliminary analysis stage of the deal.
Compliance and transaction monitoring automation
Modern compliance tools for metallurgy allow automating compliance processes, monitoring transactions through banks, and integrating AML/KYC procedures. Innovative risk management methods, such as automatic transaction scoring and monitoring operations with precious metals, have become an obligatory standard for companies operating in the EU, Asia, and Africa.
Fines for sanction violations: judicial practice
In 2025, judicial practice on sanction cases in metallurgy expanded significantly: the number of cases of sanction regime violations increased by 40%, and fines for violating new rules reach tens of millions of euros. Special attention is paid to the subsidiary liability of deal participants and the corporate structure of metallurgical holdings.
Business registration in metallurgy under sanctions
In the modern context, business registration in metallurgy faces serious restrictions due to sanctions imposed on key Russian industry enterprises. Understanding the nuances of legal regulation and the specifics of the current sanctions policy becomes critically important for those planning to work in this sector.
Expert summary: what is it?
Thanks to this approach, the chosen jurisdiction and company form will best match business goals, which we will consider further.
Company registration in the EU and Asia
In 2025, the registration of metallurgical companies in the EU and Asia entails the preparation of an extended package of documents: charter, information about ultimate beneficiaries, confirmation of source of funds, licenses for certain activities, and also Opening bank accounts in jurisdictions with a high level of regulation. Requirements for founders have tightened: a check for absence in sanctions lists and confirmation of the legality of capital origin are mandatory.
Tax optimization and business compliance
Tax burden optimization for metallurgical companies in 2025 is impossible without smart corporate structuring: the use of SPVs, holdings, “nesting doll” firms, and transparent ownership schemes allows minimizing risks of subsidiary liability and investment restrictions.
COREDO’s solutions include auditing corporate structure, implementing due diligence, and compliance automation, allowing clients not just reduce tax burdens but also increase transparency for international partners and banks.
Risks of new partners for business
The COREDO team has implemented cases for identifying and eliminating toxic ties in clients’ corporate structures, preventing account blocking, and maintaining access to international markets.
What metallurgical companies should do under sanctions
Sanctions continue to exert significant pressure on metallurgical companies facing new restrictions and challenges in conducting foreign economic activities. In the current situation, it is especially important to understand what metallurgical companies should do under sanctions to maintain business sustainability and find new opportunities for growth.
Expert summary: what is it?
Supply chain transparency: how to meet standards
Supply chain transparency in metallurgy: a key factor in compliance with international reporting standards and ESG.
COREDO implements solutions that allow automating the collection and analysis of data across the entire supply chain, ensuring transparency and compliance with Worldsteel, European Commission, and FATF requirements.
Technological innovations and automation
In one of COREDO’s projects for a client from the UK, an automated system for monitoring metal transactions was implemented, reducing compliance costs by 30% and increasing decision-making speed.
Short-term and long-term ROI strategies
COREDO supports clients at all stages of business scaling: from company registration in new jurisdictions to the implementation of automated compliance solutions and tax burden optimization.
Recommendations for metallurgical companies
| Key Change | Practical Actions | Main Risks | Tools and Solutions |
|---|---|---|---|
| 18th EU sanctions package | Check counterparties, update KYC | Secondary sanctions, account blockage | LIGA360, integration of sanctions lists |
| New AML/compliance requirements | Implement automation, train personnel | Fines, loss of license | Compliance platforms, training |
| Metal export restrictions | Market diversification, transaction structuring | Market loss, reduced margins | Alternative routes, SPV |
| Corporate structure requirements | Structure optimization, connection audit | Subsidiary liability | Due diligence, legal audit |
Checklist for a metallurgical company
- Conduct an audit of corporate structure and connections to ensure compliance with new sanctions requirements.
- Implement automated platforms for counterparty verification and transaction monitoring.
- Update internal AML/KYC policies and train staff on new standards.
- Ensure supply chain transparency and integrate ESG indicators into reporting.
- Develop a strategy for market diversification and transaction structuring through SPVs and holdings.
- Regularly conduct due diligence on new partners and audit toxic connections.
- Monitor judicial practice and updates of EU and NSDC sanctions lists.
If you wish to receive an individual consultation, conduct an audit, or implement a comprehensive compliance solution: the COREDO team is ready to offer the best practices and tools proven in international markets.