Eco-duty in Ukraine: media warn about a decrease in exports

Export of Ukrainian steel to the EU is decreasing due to the new CBAM eco-tariff.

In the first quarter of 2026, exports of Ukrainian steel products to the European Union decreased by 17% compared to the previous year. This was caused by the introduction of the European CBAM eco-tariff, which has become a serious challenge for Ukraine, reports The Wall Street Journal.

The European CBAM mechanism (Carbon Border Adjustment Mechanism), aimed at reducing carbon emissions, has led to a decrease in the competitiveness of Ukrainian metallurgical enterprises in the European market. Ukraine’s Minister of Economy, Oleksiy Sobolev, noted that CBAM complicates the situation for Ukrainian exporters, as European buyers switch to other suppliers due to additional costs and uncertainty.

Ukraine is one of the largest suppliers of products subject to CBAM in the EU. However, the Ukrainian side considers the European Commission’s forecasts of minimal impact of CBAM on the Ukrainian economy to be unrealistic, as possible losses may reach 6.5% of GDP over the next 10 years.

Yuriy Ryzhenkov, CEO of the Metinvest Group, warned that without adaptation, CBAM could become a serious threat to the Ukrainian metallurgical industry. Ukraine calls for the implementation of a transition period to adapt and modernize the industry under war conditions.

Ukraine cooperates with the EU in the direction of decarbonization but insists on a specific approach taking into account the current war and infrastructural challenges. Members of the European Parliament have previously called for a revision of the approach to applying CBAM to Ukraine, considering its exceptional circumstances.