Negotiations with the European Commission will test whether tailored CBAM measures can shield Ukrainian exporters while upholding EU climate commitments.

Ukraine continues negotiations with the European Commission on implementing a special approach within the Cross-Border Carbon Adjustment Mechanism (CBAM), which affects producers and the export of Ukrainian products to the EU.

At the briefing, this was confirmed by Ivan Nahorniak, adviser to the Deputy Prime Minister for European and Euro-Atlantic Integration of Ukraine.

According to him, a full exemption of Ukraine from CBAM is currently unlikely, as during discussions in the European Council the main emphasis is on possible implications for the EU’s internal market.

We should not speak merely about excluding Ukraine, but about a special approach for candidate countries that are already in the negotiation process for EU membership and are fulfilling their commitments under the European Union’s climate policy, particularly regarding the implementation of the emissions trading system

– Ivan Nahorniak

The impact of CBAM on the metallurgical sector and Ukraine’s economy

Oleksandr Kalenkov, deputy president of the Ukrainian Association of Metallurgical Enterprises “Ukrmetallurgprom,” noted that the CBAM mechanism, in combination with new tariff restrictions, is already exerting negative pressure on the operation of Ukraine’s mining and metallurgical complex. According to him, some enterprises have been forced to suspend deliveries to the EU, reduce production, and move toward workforce optimization.

Kalenkov emphasized that data commissioned by the industry indicate a substantial negative impact of CBAM on Ukraine’s economy, and by 2030 losses could reach several percent of gross domestic product.

He added that due to the full-scale war, Ukrainian enterprises are operating in survival mode and lack sufficient financial resources and security guarantees for large-scale modernization and decarbonization of production.

Measures by the government and ministries to minimize the impact

Representatives of the Ministry of Economy together with the Ministry of Environment and Agricultural Policy urged Ukrainian business to provide updated data on the economic consequences of CBAM for the first half of the year. Such materials are planned to be used during further consultations with the European Commission to reduce the mechanism’s negative impact on the national economy.

According to government sources, CBAM became fully operational on January 1, 2026, and provides for carbon adjustments to imports into the EU of cast iron, steel, cement, fertilizers, aluminum, electricity, and hydrogen from countries, including Ukraine.

Negotiations continue to find compromise options that will reduce the burden on Ukrainian producers, taking into account the EU’s climate policy commitments.

The government continues to coordinate with European partners to mitigate CBAM’s impact on the national economy and exports.

Overall, the stability of Ukraine’s exports to the EU in the context of meeting climate standards, as well as the prospects for modernizing Ukraine’s industry to meet new market requirements, depend on the consideration of these issues.