Ukraine requires the establishment of special conditions with a prolonged transitional period to adapt to the implementation of the European CBAM (Carbon Border Adjustment Mechanism), as its rapid introduction could negatively impact the export of Ukrainian steel products. This was discussed at the Business Wisdom Summit 2025, where the head of the Metinvest group, Alexander Mironenko, emphasized that more time is needed for the modernization of metallurgical enterprises than what the new regulation allows.
This is reported by Business • Media
Impact of the CBAM on Ukrainian Exports and the Need for State Support
According to Mironenko, the launch of the CBAM is scheduled for January 1, 2026, but Ukrainian producers currently do not have access to special financing conditions or grants for modernization, while European companies are receiving such advantages.
“Modernizing a facility takes 3-4 years from decision to launch. We cannot invest in modernization due to the war, and this significantly complicates the process”
— noted the head.
He emphasized that it is crucial for Ukrainian metallurgists to receive a postponement in the implementation of environmental requirements in order to update production and strengthen their competitiveness. Estimates suggest that the modernization of a plant requires effort and time, and its completion may take several more years even after the relevant decisions are made.
Consequences of the Mechanism’s Implementation and the Need for State Support
According to experts, if a carbon tax is introduced in 2028 and the war ends in 2025-2026, Ukrainian producers will simply not have enough time to adapt to the new requirements. As a result, this could lead to significant economic losses — according to the Federation of Employers of Ukraine, the country’s GDP could decrease by 4.8–6.1% between 2026 and 2030. This is a serious issue for the wartime and post-war economy, which requires special conditions and a prolonged transitional period for stabilization.
Alexander Mironenko stressed: “We really need state support to postpone these requirements and gain time for modernization. After the war ends, at least three to four years are needed to update production, and it is important that we are given the opportunity to implement these plans.”
Previously, analysts updated their estimates of the impact of the cross-border carbon adjustment mechanism (CBAM) on Ukrainian exports to the EU, forecasting that export losses for 2026-2030 could exceed $4.7 billion, considering that in 2024 Ukraine exported goods to the EU worth $24.8 billion, of which 14.5% falls under the CBAM regulations.