The Ukrainian League of Industrialists and Entrepreneurs (ULIE) announced support for the government’s plan to request the EU delay the implementation of the Carbon Border Adjustment Mechanism (CBAM) for Ukraine. Trade Representative Taras Kachka confirmed the Cabinet of Ministers will formally appeal to the European Commission to begin negotiations.

CBAM, set to be fully enacted on January 1, 2026, is a carbon tax on imported goods such as steel, cement, and chemicals. Estimates indicate it could cost Ukrainian producers over EUR1 billion. ULIE stressed that introducing additional carbon taxes amid a full-scale war and limited resources is critical for local industry.

The organization warned that applying CBAM without transition measures would be economically harmful and emphasized the need for fair, realistic approaches. Ukrainian industries face challenges including damaged infrastructure, market losses, and the need to invest in energy autonomy. ULIE urged the EU not to let CBAM become a new trade barrier and called for economic exemptions during wartime and recovery.