The planned introduction of environmental taxes in Ukraine, linked to European legislation and the Carbon Border Adjustment Mechanism (CBAM), should be postponed at the national level to allow businesses time to adjust, according to Yulia Dankova, CFO of the Metinvest Group. Speaking at Ukraine’s XXII Annual CFO Forum, Dankova expressed concern that without a phased implementation, CBAM would put Ukrainian industries, especially steel, at a disadvantage without adequate environmental funding and infrastructure in place.

Dankova emphasized that while environmental taxes under CBAM are intended to promote accountability for emissions and climate risks, a gradual approach is necessary. She noted that incentivizing eco-friendly changes requires substantial capital. European steelmakers have benefitted from billions in government subsidies for environmental improvements—support that Ukraine's steel industry lacks, especially amid the ongoing conflict. The need for gradual implementation is underscored by findings from the GMK Center, which report that 15-17% of Ukraine’s EU exports, worth $3.6 billion in 2023, could be impacted by CBAM, with potential export losses reaching $4.6 billion by 2030.

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