Ukrainian Industry's Apprehension
Oleksandr Vodoviz, a representative of the Metinvest Group, has raised concerns about potential risks to Ukrainian industry stemming from new European Union mechanisms, specifically the Carbon Border Adjustment Mechanism (CBAM) and the broader decarbonization process. He has called for financial support to modernize Ukrainian production facilities, similar to the aid provided to industry in Poland. Vodoviz argued that if the EU requires the implementation of stringent environmental laws, it should logically also provide financial assistance to help Ukrainian enterprises comply.
Unfair Competition and the Need for Aid
Speaking at the 'Dialogues on the Future: Business and European Integration' event in Kyiv, organized by NV, Vodoviz stressed that the new rules could create an uneven playing field for Ukrainian producers compared to their European and Russian counterparts. Within the EU, Emission Trading Systems (ETS) price one ton of CO₂ emissions at 100–120 euros. For context, an average European steel plant receives around 1 billion euros in decarbonization aid, highlighting the critical need for similar support for Ukrainian firms.
Oleksandr Vodoviz also noted that the issue of carbon adjustment extends beyond the steel sector to affect farmers, fertilizer producers, and other exporters.
This is an issue for everyone—for farmers, for fertilizer producers, for all exporters. Everyone will have to undergo verification and then pay the corresponding fees.- Oleksandr Vodoviz
Since the start of the war in Ukraine on February 24, 2022, the Metinvest Group, led by Rinat Akhmetov, has invested over UAH 28 billion in developing its production facilities. In 2025, Metinvest companies paid UAH 18.7 billion in taxes and fees to budgets at all levels. Vodoviz believes that strengthening sanctions could increase exports of Ukrainian mining and metallurgical products to the EU by more than 1 billion euros over four years.
The concerns expressed by Oleksandr Vodoviz point to the significant challenges facing Ukrainian industry as it adapts to the EU's new environmental standards. Financial support for modernization is a crucial factor for maintaining the competitiveness of Ukrainian enterprises in the European market, especially under the CBAM framework. Success in this area could also provide a substantial boost to Ukraine's economy by increasing budget revenues through higher exports to the EU. The situation underscores the broader economic pressures Ukraine faces while defending itself against Russian aggression.
As Ukrainian industries face significant challenges due to new EU carbon regulations, understanding the broader context of the country's wartime economy becomes crucial. The ongoing resilience and recovery efforts are not only vital for the industrial sector but also for the overall economic stability of Ukraine. For a deeper insight into how these dynamics are playing out amid current challenges, you can read more about Ukraine's wartime economy.