Taras Shevchenko, the general director of Ukraine-based Zaporizhstal Iron and Steel Works, which belongs to Metinvest, has stated that the EU’s Carbon Border Adjustments Mechanism (CBAM) which will be effective in 2026 will make Ukraine’s economic recovery, modernization plans and decarbonization plans impossible.
He noted that experts forecast a drop in Ukraine’s GDP by 4.8 percent in 2026 alone, and so the Ukrainian economy may lose up to $2.8 billion in tax revenues and more than 73,000 jobs in processing industry enterprises.
In addition, pointing out that the mass exports of Ukrainian scrap abroad have led to an acute raw material shortage in the country, Mr. Shevchenko stated that keeping scrap metal within the country would be better for Ukraine's economy. A ton of scrap for export provides up to $350 in foreign exchange earnings, while one ton of steel from scrap brings UAH 15,000 in taxes, he noted.
