The PMGU has called for solutions regarding CBAM exemptions for Ukraine

In the context of war and infrastructure destruction, this mechanism poses significant risks to Ukrainian industry

The Trade Union of Steelmakers and Miners of Ukraine (PMGU) has called for urgent solutions regarding exemptions for Ukraine from the application of the European Cross-Border Carbon Adjustment Mechanism (CBAM).

Corresponding letters have been sent to the heads of Ukraine’s state bodies, including Prime Minister Yulia Svyrydenko and relevant ministers, National Security and Defense Council Secretary Rustem Umerov, Federation of Trade Unions of Ukraine (FTU) Chairman Serhiy Byzov, as well as EU Ambassador to Ukraine Kateryna Maternova and IndustriALL General Secretary Atle Høie.

The PMGU, together with the Federation of Trade Unions of Ukraine, notes that in peacetime, the CBAM is an important instrument of European climate policy; however, at present, it poses significant risks to Ukrainian industry. The latter is operating under conditions of war and the destruction of energy and production infrastructure, so manufacturers lack the resilience needed to adapt.

As evidence of the critical nature of the situation, the PMGU cites the difficult situation at ArcelorMittal Kryvyi Rih. The introduction of the CBAM leads to a loss of competitiveness for Ukrainian steel due to rising production costs and a decline in exports—for the company, this could amount to half of its annual production. The crisis is exacerbated by energy supply issues and rising electricity prices.

The union points out that all of this is leading to a shutdown of production facilities, specifically the forced suspension of operations at AMKR’s subsidiary, Casting and Mechanical Plant LLC. According to information from the primary organization of the PMGU “ArcelorMittal Kryvyi Rih,” if economic conditions continue to deteriorate, a significant number of jobs could be at risk, creating serious social risks for employees and the industrial region as a whole.

Under these circumstances, the Trade Union of Metallurgists and Miners of Ukraine once again draws the attention of the state and international partners to the need to find a solution to preserve employment in Ukraine’s mining and metallurgical complex.

As a reminder, the Ukrainian Union of Industrialists and Entrepreneurs (UUIE) previously stated that the implementation of CBAM without a transition period for Ukraine creates systemic risks to the country’s economic stability amid a full-scale war.