According to Alexander Vodoviz, head of the office of the CEO of the Ukrainian mining and steel company Metinvest, the EU carbon border adjustment mechanism (CBAM) will create serious problems for the steel industry in Ukraine. Speaking during the dialogue on Ukraine's integration into the EU, Mr Vodoviz said the upcoming regulation could have a significant impact on the country's industrial competitiveness and economic prospects.
According to estimates given during the discussion, this mechanism could lead to a fall in GDP of about five percent initially and up to 10 percent by 2030.
He stressed that uncertainty remains about the actual cost burden for Ukrainian exporters, saying that the company still lacks clarity on the level of payments required under the new system.
The Metinvest executive stressed that CBAM could significantly weaken the position of Ukrainian steel producers in the EU market, which is a key export destination. He noted that European steel producers are receiving significant financial support for decarbonization, including grants and emissions credits, while Ukrainian companies face limited access to similar funding.
Vodovis called for delaying the implementation of CBAM for Ukraine, especially given the ongoing war and its impact on industrial operations.
