Ukraine\u2019s steel industry risks losing billions of dollars and a key export market due to the full implementation of the EU\u2019s Carbon Border Adjustment Mechanism (CBAM).<\/p>\n
It is noted that the new environmental levy has already begun to apply to Ukraine. And despite the fact that the country is entitled to a deferral, it has so far been impossible to secure one.<\/p>\n
Steel producers are already reporting the first consequences. In particular, ArcelorMittal Kryvyi Rih has shut down one of its rolling mills, citing rising costs caused by CBAM. The tax in the EU can reach \u20ac86\u2013100 per ton of emissions, while in Ukraine the emissions fee is about 30 hryvnias per ton.<\/p>\n
According to estimates by GMK Center, Ukraine could lose up to $5 billion in export revenues over five years. The problem is that most Ukrainian plants operate with outdated equipment, and there are no opportunities for rapid modernization under wartime conditions.<\/p>\n
Experts stress that the only realistic way to reduce CBAM payments is large-scale modernization. However, according to Dragon Capital analyst Denys Sakva, full decarbonization requires billions of dollars in investment and years of work \u2014 something currently out of reach for Ukrainian companies.<\/p>\n
The situation is further complicated by the structure of exports: about 80% of Ukrainian metal is shipped to the EU, while metallurgy together with the mining sector accounts for around 7% of GDP, 15% of exports, and up to 30% of freight transport turnover. Metinvest notes that Ukrainian producers are in worse conditions than other exporters to the EU and have no alternative capacity to redirect high-emission products to third markets.<\/p>\n
The company emphasizes that it is critically important for Ukraine to secure a special or transitional CBAM regime from the EU.<\/p>\n
The government confirms that dialogue with the European Commission is ongoing, and that Ukraine is analyzing documents on the mechanism\u2019s economic impact. A meeting with EU climate commissioner Wopke Hoekstra is also planned, though no specific timeline has been announced. Meanwhile, it is not only steelmakers preparing for potential losses: CBAM will also cover the cement and chemical industries, as well as aluminum producers and electricity generation.<\/p>\n
\u201cWithout systemic solutions and financial support, the risk of losing the EU market could turn into large-scale economic consequences for the country,\u201d journalists warn.<\/p>\n
It is known that the European Commission\u2019s new proposal to strengthen CBAM still does not include an exemption for Ukraine despite the war. The Commission has said the impact of CBAM on Ukraine\u2019s economy will be \u201cminimal.\u201d However, these assessments are detached from reality, says Stanislav Zinchenko, director of GMK Center and head of the EBA Industrial Ecology Committee: Ukraine remains the largest exporter of CBAM-covered goods to the EU by physical volume. Overall, CBAM goods account for about 2% of Ukraine\u2019s GDP.<\/p>\n
In turn, Ukrainian business ambassador and economic expert Andrii Zablovskyi has stated that despite the European Commission\u2019s formal refusal to postpone the CBAM eco tariff for Ukraine, the country still has a full and legal right to such a deferral and should intensify negotiations with the Commission to exercise this right.<\/p>\n","protected":false},"featured_media":151104,"menu_order":0,"template":"","newscat":[9],"newstag":[],"issues":[],"class_list":["post-151103","news","type-news","status-publish","has-post-thumbnail","hentry","newscat-novosti"],"_links":{"self":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news\/151103","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media\/151104"}],"wp:attachment":[{"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/media?parent=151103"}],"wp:term":[{"taxonomy":"newscat","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newscat?post=151103"},{"taxonomy":"newstag","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/newstag?post=151103"},{"taxonomy":"issues","embeddable":true,"href":"https:\/\/ldaily.ua\/en\/wp-json\/wp\/v2\/issues?post=151103"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}