Speaking at the roundtable “The impact of CBAM on Ukraine’s economy and iron and steel sector 2026-2030,” organized by the GMK Center, Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih, the Ukrainian subsidiary of Luxembourg-headquartered ArcelorMittal, has stated that the company has lost approximately 300,000 mt of steel exports in the January-March period of this year. The decline is linked to the implementation of the Carbon Border Adjustment Mechanism (CBAM), which has introduced additional costs (CBAM cost $60-90/mt) and administrative burdens for exporters supplying steel to the EU. The company had initially planned to ship 1.2-1.25 million mt of steel to Europe in 2026, accounting for nearly half of its total production.
Export decline reflects broader market pressures
The reported loss of export volumes highlights the growing pressure on Ukrainian steelmakers as they navigate both regulatory changes and ongoing market challenges.
EU market access for the company deteriorated despite prior expansion. Following the outbreak of the war, ArcelorMittal Kryvyi Rih had shifted its focus toward the EU market, gradually building a presence over three years.
In 2025, the company exported around 920,000 mt of long products to the EU. However, the continuation of these shipments has become uncertain, with long products identified as the segment most affected by CBAM.
Production cuts and job losses accelerate
As a direct consequence of the new regulatory environment, ArcelorMittal Kryvyi Rih has taken significant operational measures. During the first quarter of 2026:
- At least 3,400 jobs were cut,
- Several production units ceased operations, including its blooming mill, as SteelOrbis previously reported.
The company has reported operating losses for five consecutive years and continues to rely on support from its parent group.
Industry warns of long-term market loss
According to the company’s assessment, Ukrainian producers could lose access to the EU market within five years if CBAM is applied without adjustments. The inability to redirect volumes to alternative markets increases the risk of further production cuts and economic disruption, particularly in industrial regions such as Kryvyi Rih.
Noting that the Ukrainian government must protect the real economy from the pressure of the CBAM and dumped imports, and stabilize electricity prices, Mr. Longobardo urged the European Commission to postpone the application of the CBAM to Ukrainian exporters for at least three years.
