News Global Market CBAM 1527 17 April 2026
Ukrainian steelmakers, who are working under wartime conditions, note that they need a temporary exemption from the mechanism
Ukrainian steelmakers say the EU’s new carbon tax under the CBAM is prompting European customers to cancel orders, threatening one of the country’s most important sources of export revenue. This is reported by Politico.
Ukrainian steel companies, which are grappling with the consequences of Russia’s full-scale invasion, note that they need a temporary exemption from CBAM, as the mechanism has already scared off their regular buyers.
The European Union is the largest export market for Ukraine’s steel industry, with Poland alone accounting for a third of steel product shipments.
Mauro Longobardo, CEO of ArcelorMittal Kryvyi Rih, stated at a roundtable organized by the GMK Center that the CBAM “almost instantly” cost the Kryvyi Rih-based company its market.
“Once customers learned about the additional duty [CBAM payment] of $60 to $90 per ton, they canceled all orders for the first quarter of 2026 — about 300,000 tons,” he noted.
Due to the impact of the cross-border carbon adjustment mechanism, the company shut down its blooming mill, which had been in operation since the plant’s founding, as well as its foundry and mechanical plant, since no market could absorb the exports intended for the European Union.
Metinvest Group has also reported difficulties with CBAM.
“The EU is the main market for Ukrainian steelmakers, who are operating under significantly worse conditions than their competitors,” a company spokesperson noted in an email to Politico.
He added that while CBAM formally pursues environmental goals, in practice the mechanism also functions as a tool to protect the European market.
Metinvest highlighted the conditions currently facing Ukrainian industry.
“We are operating under shelling, with disruptions to energy supply, workforce losses and constant uncertainty. Therefore, we appeal to our European partners: While Ukraine is ready to move in line with EU rules, it needs transitional arrangements and support to prepare for these requirements,” the company spokesperson noted in written comments.
The group added: The EU could consider directing potential CBAM payments for Ukrainian steel into special accounts—this would eventually help modernize Ukrainian companies while simultaneously increasing demand for European technologies.
As a reminder, CBAM will reduce exports of ferrous metallurgy products from Ukraine by 2.5 million tons by 2030, according to a study by the GMK Center. The mechanism’s overall impact on the country’s economy is estimated at -2.1% of GDP in 2030. This figure stands in stark contrast to the European Commission’s estimate of -0.01%.CBAM
