Dpty PM: European Commission makes mistake regarding CBAM for Ukraine
The European Commission made an error in its calculations regarding the application of the Carbon Border Adjustment Mechanism (CBAM) to Ukraine from January 1, 2026. The practical results of the first quarter of 2026 have confirmed this mistake, and it must be corrected. Relevant negotiations are currently underway at the level of the European Commission, Deputy Prime Minister for European and Euro-Atlantic Integration of Ukraine Taras Kachka said.
"This is what we are discussing [with the European Commission]. I think we will find a solution that will satisfy the Commission," he said during a discussion at the Third EU-Ukraine Business Summit, taking place in Brussels on April 22-23.
According to Kachka, a "good discussion" took place in Brussels with Gerassimos Thomas, Director-General of the Directorate-General for Taxation and Customs Union (DG TAXUD).
"And we see that we are capable of finding common ground on how to correct something technical that led to this mistake," the deputy prime minister said.
Minister of Economy, Environment and Agriculture Oleksiy Sobolev, who also took part in the meeting with Thomas, was more blunt during the discussion: he described the interaction between Ukraine and the EU on CBAM issues as "strange." "Sometimes it feels a bit like gaslighting," the Economy Minister said.
He recalled that throughout last year, especially in its second half, the Ukrainian side had expressed concern that CBAM would create many problems for Ukraine and had provided the relevant calculations.
"And it's not that the EU said this was unimportant. They said it would not happen. They had calculations showing there would be no impact. Now we are seeing a really, really big impact. And… this is news for the EU: … 'oh, this is much worse than we expected.' This is very unusual. We usually do not have such disagreements with the EU in other sectors… And yes, we need to resolve this," Sobolev said during the discussion at the business summit.
On Facebook, he clarified that due to the objective impossibility of verifying emissions during the war, losses in Ukrainian metallurgy exports in the first quarter of 2026 ranged from 17% to 93%, depending on the sector.
According to the minister, it was agreed that DG TAXUD would accelerate the process of verifying Ukraine's emissions and propose practical solutions for business.
"Also tomorrow [April 23] we will raise the discussion to the political level for further resolution," Sobolev said.
In Kachka's view, the problem that has arisen with CBAM is a manifestation of a strategic issue.
"For the [European] Commission, it is important to treat Ukraine as part of its own market, rather than as a trading partner," the Deputy Prime Minister said.
According to him, Ukraine is not simply a foreign market, a "third country," because the EU and Ukraine have signed an Association Agreement, Ukraine is a candidate for EU membership, and such application of CBAM is discriminatory.
"I think strategically this is also a message for business: Ukrainian business and European business must understand how we treat one another… We need to begin to understand that there was a mistake, at least one or several, in the assumptions that were made last year, and how we can correct it this year before the damage to Ukrainian industry becomes irreversible. Because this is not only about direct damage. It is also about undermining trust in one another," Kachka believes.
He was supported by CEO of pipe and wheel company Interpipe Luca Zannotti. He said a general picture of cooperation with the EU is needed, on the basis of which companies can develop their policies.
The head of Interpipe stated that the CBAM situation is hitting Ukrainian producers even when they have low emissions, because they have no way to verify them.
Earlier, representatives of the energy sector also complained about the impossibility of avoiding payment at the maximum CBAM rate due to the lack of verification.
"That is, everyone in Europe who had the courage to buy electric power [from Ukraine], even from a solar power plant, has to pay EUR 68 for every MWh at the end of the quarter," Head of Kyiv office of Energy Community Secretariat Oleksiy Orzhel, who headed the Energy Ministry in 2019-2020, at the end of March.
He explained that this "carbon price" is calculated as the product of the CO2 emissions price, which is currently above EUR 70, and a coefficient which, for electricity, equals 0.9.
Orzhel told Interfax-Ukraine that CBAM verification of generating capacities in Ukraine, where the war is ongoing, is unlikely to take place this year or at the beginning of next year, because demand for this service is currently very high, including among Balkan countries, which have also been badly hit by the introduction of this mechanism.
"We stressed that in wartime conditions Ukraine's industry faces exceptional challenges, and we need practical, timely solutions to ensure fair treatment, predictability and continued economic resilience. Also agreed to continue technical work on improving access to actual values and verification, as well as reviewing the application of default values. A more predictable and balanced approach is essential," Kachka summed up on social media platform X following the meeting with DG TAXUD Director-General Thomas.
