CBAM: Ukraine seeks a compromise with the EU on steel industry during wartime

CBAM: Ukraine seeks a compromise with the EU on steel industry during wartime facebook.com/UA.EU.NATO
Hanna Velyka

Domestic companies are already losing customers and contracts worth millions due to the EU's carbon border adjustment mechanism

The Ukrainian steel industry is not asking for an exemption from European regulations or climate goals; rather, it is already aligning with EU standards and investing in the decarbonization and modernization of its production facilities.

This was emphasized by Taras Kachka, Ukraine’s Deputy Prime Minister for European and Euro-Atlantic Integration, during a meeting with Karin Karlsbro, Vice-Chair of the European Parliament’s Committee on International Trade.

He stressed that all new steel production facilities in Ukraine are being built with the involvement of European technologies and companies.

The Deputy Prime Minister identified the main task today as finding the most effective model for the gradual integration of the Ukrainian metallurgical industry into the single European market, taking into account the conditions and challenges of the war. He highlighted the extremely difficult conditions under which the Ukrainian steel industry is currently operating:

“Some enterprises are located just a few kilometers from the active front line and are under daily fire from artillery, FPV drones, and Russian missiles. Despite this, the enterprises continue to operate, preserve jobs, and support the Ukrainian economy.”

During the dialogue with the European Parliament representative, Ukrainian officials paid particular attention to the issue of the consequences of applying the CBAM mechanism to Ukraine and new quota restrictions on steel. The Deputy Prime Minister emphasized the critical need to support the metallurgical industry under the extremely difficult conditions of a full-scale war.

“A strong Ukrainian steel industry is a matter not only for Ukraine’s economy but also for the economic resilience and strategic autonomy of all of Europe,” Taras Kachka is convinced.

Recently, EcoPolitic reported that Members of the European Parliament called on the European Commission to review its approach to applying the CBAM mechanism to Ukraine due to the full-scale war. They have proposed to separately discuss the possibility of a special regime for our country.

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