CBAM Emerges as a Major Hurdle for Ukraine in EU Relations: Metinvest’s Proposed Solutions

Yuriy Ryzhenkov’s Address at the 2026 EU-Ukraine Business Summit

According to Главком: At the 2026 EU-Ukraine Business Summit held in Brussels, Metinvest CEO Yuriy Ryzhenkov identified the CBAM carbon border adjustment mechanism as one of the most pressing challenges in Ukraine’s relationship with the European Union. Metinvest, which has been operating with the EU for roughly two decades, now sends about half of its total output to European customers. Since 2022, the company has effectively become an integrated part of the EU’s single steel market.

Ryzhenkov stressed that the CBAM framework presents serious difficulties for the firm. He stated:

'CBAM poses major challenges for us. We saw this coming and began preparing early: back in 2021, we announced two decarbonization projects in Ukraine. However, the ongoing war in the country makes large-scale investments impossible, putting us at a clear disadvantage compared to our European rivals.' - Yuriy Ryzhenkov

He also noted that 'combined with the global energy crisis, logistics bottlenecks, and the tough business environment in Ukraine, CBAM significantly worsens our operating conditions.'

In response to these obstacles, Ryzhenkov proposed exploring options such as deferring CBAM payments or channeling the revenues generated by the mechanism toward modernizing and decarbonizing Ukraine’s industrial sector. 'We’re not asking for special treatment-we’re asking for time to get our internal processes in order,' he added.

Backing for Ukrainian Industry

The summit brought together more than 140 speakers, including high-ranking officials from the European Commission and the Ukrainian government. The event was organized by the European Commission, the governments of Ukraine and Poland, and European Business Summits. Speaking about EU integration, Ryzhenkov expressed confidence that Ukraine would become a full EU member within the next decade. He remarked:

'It’s essential that both the EU and Ukraine view each other as partners and recognize the mutual benefits of Ukraine’s European integration. We want our company to be seen as a collaborator in new projects and growth areas. With that mindset, we can move forward.' - Yuriy Ryzhenkov

Notably, Metinvest ranks among the top three largest investors in Ukraine. Over the past four years, the company has poured 37.8 billion UAH into sustaining and developing its Ukrainian operations.

Ryzhenkov’s remarks highlight the real-world challenges Ukrainian companies face amid European integration, especially when it comes to new environmental standards. The CBAM mechanism could significantly affect the competitiveness of Ukrainian enterprises, particularly during wartime and economic uncertainty. The solutions he proposed may serve as a vital step in supporting Ukrainian industry as it adapts to the evolving demands of the European market.

As the implications of the European carbon tax on Ukrainian exports continue to unfold, the challenges highlighted by Ryzhenkov at the summit underscore the urgent need for a coordinated response. Without such measures, the ability of Ukrainian businesses to compete in the EU market may be severely compromised.