Ukrainian steel producers, led by Metinvest Group, are urging the European Union to delay the Carbon Border Adjustment Mechanism (CBAM) for Ukraine. The request comes as the country continues to struggle with war and limited access to modernization funding.
Ukrainian Steelmakers Struggle to Modernize Amid Conflict
Metinvest Group’s COO, Oleksandr Myronenko, stated at the Business Wisdom Summit 2025 that Ukraine cannot currently meet CBAM requirements. The EU’s carbon tax policy, set to take effect on January 1, 2026, poses a serious risk to Ukraine’s steel exports. As the war continues, raising funds for modernization has become nearly impossible.
Steel modernization takes 3–4 years, according to Myronenko. However, Ukraine faces a much tighter timeline. Without the ability to invest now, the country risks losing competitiveness in the EU market when CBAM begins.
Economic Impact Could Be Devastating Without Flexibility
According to the Federation of Employers of Ukraine, CBAM could reduce Ukraine’s GDP by 4.8–6.1% between 2026 and 2030. The war has already made the EU market crucial for Ukraine. But without transitional support, Ukrainian steelmakers may not survive the added carbon cost burden.
Metinvest and other producers stress that they are ready to modernize their operations. However, they require a longer transition period and government support to adapt. While EU manufacturers benefit from grants and financing, Ukraine’s producers do not have the same access.
The GMK Center updated its analysis of CBAM’s potential impact using 2024 data. Export losses could exceed $4.7 billion by 2030. This is particularly damaging given that 14.5% of Ukraine’s $24.8 billion exports to the EU last year fall under CBAM regulation.
Steel producers are calling on the Ukrainian government and EU institutions to create special terms. Delaying CBAM enforcement for Ukraine could support long-term recovery and help the country rebuild its economy post-conflict.
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