The EU’s Carbon Border Adjustment Mechanism (CBAM) is set to create significant challenges for Ukraine’s steel industry, according to Oleksandr Vodoviz, head of the CEO’s office at Ukrainian mining and steel producing company Metinvest Group. Speaking during a dialogue on Ukraine’s EU integration, Mr. Vodoviz said the upcoming regulation could have a substantial impact on the country’s industrial competitiveness and economic outlook.
According to estimates cited during the discussion, the mechanism could lead to a GDP decline of around five percent initially and up to 10 percent by 2030.
He emphasized that uncertainty remains over the actual cost burden for Ukrainian exporters, stating that companies still lack clarity on the level of payments required under the new system.
The Metinvest executive highlighted that CBAM could significantly weaken the position of Ukrainian steel producers in the EU market, which is a key export destination. He noted that European steelmakers benefit from substantial financial support for decarbonization, including grants and emissions allowances, while Ukrainian companies face limited access to similar funding.
Vodoviz called for a postponement of CBAM implementation for Ukraine, particularly given the ongoing war and its impact on industrial operations.
