Ukraine is preparing to formally appeal to the European Commission to postpone the impact of the Carbon Border Adjustment Mechanism on Ukrainian exports. According to Ukrainian Trade Representative Taras Kachka, the Cabinet of Ministers plans to initiate the formal appeal process to the European Union on this issue.
The CBAM provides for the introduction of additional duties based on carbon emissions of imported products and is expected to come into full force from January 1, 2026. The mechanism particularly affects energy-intensive sectors such as metallurgy, cement and chemicals. According to preliminary calculations, the introduction of CBAM could cost Ukrainian producers more than EUR 1 billion a year.
ULIE has warned since last year that the implementation of CBAM without a transitional period or exemptions for Ukraine would be an economic disaster for the industry. It was recalled that in March, with the support of the business community and experts, the government was once again challenged.
Anatolii Kinakh, President of ULIE, pointed out that Ukrainian industry is operating under extraordinary conditions. "Companies are being devastated by Russian shelling, struggling with a lack of working capital, losing markets and having to take measures against energy shortages. In these circumstances, additional carbon taxes would directly undermine the competitiveness of our exports.”
ULIE emphasized that CBAM should not create a new “trade wall” between Ukraine and the EU and called on European partners for economic solidarity, not just political. He added: ”Ukraine is not only defending its own security, but also the security of Europe. It is therefore legitimate to provide economic exemptions in wartime conditions,"
ULIE announced that it is preparing a targeted meeting with the EU in the framework of the decarbonization policy, together with the General Center for Combating the Crisis and other industrial associations, established to preserve economic stability.
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