Alexander Vodoviz, head of the office of the CEO of the Ukrainian steel group Metinvest, warned that the EU Carbon Border Adjustment Mechanism (CBAM), which is due to come into force on January 1, 2026, could cause a serious economic shock to the Ukrainian economy.
Speaking at the conference "Towards Integration: Dialogue between Government and Business for Ukraine's EU Membership" in Kyiv, Mr Vodovis said the EU's decarbonisation policy had moved from protecting the environment to protecting the market, warning it could undermine Ukraine's post-war industrial recovery.
Research by British audit and consultancy firm Ernst & Young and the Ukrainian Federation of Employers shows CBAM could cut Ukraine's GDP by up to five percent in 2026 and up to 10 percent by 2030 if it is implemented as planned.
Call for delay and alternative solutions
Vodovis called on the Ukrainian government and the EU to explore options for deferring CBAM obligations or providing alternative routes to compliance until after the war. “We appeal to the government: this is a serious blow to our economy. We need to jointly look for a solution on how to postpone this period, because there is a war in the country. Or what alternative commitments we can make to the European Union to avoid the introduction of the tax on January 1,” Vodovis said.
He noted that while EU steelworkers receive billions in grants
