Ukrainian mining and steel group Metinvest has called on the EU to take Ukraine's wartime conditions into account when implementing steel import quotas and the Carbon Border Adjustment Mechanism (CBAM), warning that the country's steel industry is facing severe pressure from Russian attacks, production disruptions and restricted access to the European market.
According to Metinvest head of the CEO's office Oleksandr Vodoviz, Ukraine's major integrated steel plants have been severely affected by Russian attacks. Zaporizhstal has remained idled following repeated missile strikes, while Kametstal subsequently suspended production following an attack on September 5. Vodoviz stated that Metinvest's current priority is to preserve its production capacity and workforce. Vodoviz also warned that declining domestic steel production could increase Ukraine's dependence on imports from Turkey and South Korea, which he said can offer more competitive prices than EU suppliers.
Regarding access to the European market, Vodoviz criticized the EU's steel quota system, stating that Ukraine has been allocated a quota of 600,000 mt. He argued that the EU should take the impact of the war on Ukrainian production into account when reviewing future quota volumes, particularly since reduced output and exports during the current period could affect the basis for subsequent quota decisions.
Temporary CBAM relief for Ukraine sought
Metinvest also called for temporary relief for Ukraine from CBAM. Vodoviz stated that Ukrainian steelmakers are willing to reduce their emissions but currently lack the financial resources and access to financing required for large-scale decarbonization investments while their production facilities remain exposed to attacks. According to Vodoviz, preserving Ukraine's steel industry is also important for the country's public finances and its future economic recovery. He stated that Metinvest's losses since the beginning of the war amount to billions of dollars and argued that Ukrainian large industrial companies currently have limited access to government support programs.
Meanwhile, Metinvest has put potential European expansion projects on hold. Vodoviz stated that the group had previously been prepared to invest €200 million in Poland's Huta Częstochowa but did not proceed with the acquisition. He also indicated that potential opportunities such as an acquisition in Košice, Slovakia, are no longer an immediate priority. According to Vodoviz, Metinvest is currently focused on maintaining its existing operations and production capacity and may reconsider European investment opportunities depending on how conditions develop.
