Karin Karlsbro, Vice-Chair of the European Parliament’s Committee on International Trade, recently visited Ukraine to witness firsthand the challenges facing the nation’s metallurgical sector amid the ongoing war. According to the Metinvest press service, the discussions focused on the Carbon Border Adjustment Mechanism (CBAM) and its disproportionate impact on Ukrainian exporters.
Operating under constant shellings, energy infrastructure destruction, and disrupted logistics, Ukrainian steelmakers are struggling to remain competitive in the European market. Karlsbro acknowledged that European institutions have not fully grasped the magnitude of these obstacles. “My goal is to see the real picture. While forming the political agenda in the European Parliament, we must realize that Ukraine is in the same boat as a European state,” she stated.
The core of the issue is that CBAM, intended to prevent carbon leakage, creates significant financial and technical barriers for Ukrainian manufacturers during wartime. Metinvest proposes a temporary exemption from the financial component of CBAM for Ukrainian goods during the period of martial law. The company suggests that instead of immediate payments, these funds could be redirected after the war toward financing decarbonization and purchasing European equipment for “green steel” production.
Karlsbro emphasized that European institutions must recognize the strategic role of Ukrainian metallurgy. By protecting its economic resilience, the Ukrainian industry also contributes to the collective security of Europe. The visit highlighted the urgent need for a specialized regime or specific exceptions for a country suffering from unprovoked aggression.
As Ukraine continues its path toward full EU integration, finding a balance between stringent climate goals and the survival of a war-torn economy is crucial. The dialogue between Kyiv and Brussels on this issue is not merely a technical trade dispute; it is a test of European solidarity. Moving forward, the European Parliament will likely revisit the CBAM framework, seeking ways to support Ukraine without compromising the long-term environmental targets of the EU. The resilience shown by Ukrainian enterprises serves as a cornerstone for post-war reconstruction and long-term economic integration within the European Union.