The European Union’s Carbon Border Adjustment Mechanism (CBAM) is already exerting a significant negative impact on Ukraine’s steel industry, with more than 1.1 million tons of export orders lost in the first quarter of 2026 alone.
At a roundtable organized by GMK Center, industry representatives warned that the policy could jeopardize the sector’s long-term viability if no mitigating measures are introduced.
Major producers reported substantial losses. Metinvest lost over 240,000 tons of orders and faces risks to a further 2 million tons of flat steel exports, while ArcelorMittal Kryvyi Rih saw 300,000 tons of orders canceled, leading to 3,400 job cuts.
Industry players also highlighted technical and structural challenges associated with CBAM implementation, including inflated default CO₂ emission values, limited access to accredited verifiers, and capital constraints due to upfront carbon cost requirements.
Projections indicate that by 2030, Ukraine’s steel sector could face $1.75 billion in export losses and €1.2 billion in CBAM-related costs, significantly affecting national economic performance.
Industry stakeholders are calling for temporary exemptions, revised emission benchmarks, and access to EU decarbonization funding, warning that without intervention, Ukraine’s access to the EU steel market could be severely restricted within five years.
VietnamSteel by Hoa Sen Group
