International cooperation is crucial for preparing Ukraine for CBAM – Metinvest

Such cooperation is also important for strengthening sanctions against the Russian Federation

International cooperation is crucial for strengthening sanctions against the Russian Federation and preparing Ukraine for CBAM. This opinion was expressed by Metinvest Group’s Marketing Director Volodymyr Zhukov during the Ukraine–Japan Economic Recovery Forum in Tokyo.

Currently, the company generates about 70% of its business income from product exports and 30% from the domestic market. Steel consumption is gradually recovering, partly due to infrastructure projects in which Metinvest has strong expertise and acts as a steel supplier.

The company has significantly reduced investments compared to 2021, focusing on supporting current operations and implementing small-scale projects, including those in energy generation. However, Metinvest has not changed its strategy regarding the production and supply of high-quality iron ore and low-emissions steel. Volodymyr Zhukov noted that, in the context of implementing low-carbon technologies, Ukraine has an advantage thanks to its substantial reserves of such ore and the potential for its extraction and beneficiation.

Among the challenges facing export-oriented companies, Volodymyr Zhukov highlighted the numerous restrictive measures being implemented globally, and in particular in Europe, in support of local producers.

«CBAM has been introduced and will take full effect on January 1, 2026. We must be prepared to avoid its negative consequences. In this context, international cooperation and the involvement of the global community working on this issue are extremely important», he noted.

For Ukraine to derive maximum value from its ore reserves by producing products with high added value, international cooperation in investment and financing is needed. Such interaction is also essential for strengthening sanctions against the Russian Federation.

«Although economic sanctions are in place against the Russian Federation, unfortunately, there are exceptions that allow the sale of steel to the EU. The revenues from these sales flow into the aggressor’s budget and fund the war. This is where the international community has a key role to play», the Marketing Director believes.

Regarding the company’s experience in raising funds during the war, according to Zhukov, the cost remains high due to country risk and, accordingly, increased interest rates. International cooperation also helps to find more affordable solutions. For instance, this year Metinvest secured financing for one of its projects, which is being implemented jointly with a Finnish equipment supplier – the funds were obtained through a Finnish export credit agency.

As a reminder, in 2024, Metinvest invested $170 million in environmental transformation. The Group has focused its efforts on reducing environmental impact, modernizing production, and supporting sustainable development.