Ukrainian cement exports to EU almost blocked at start of second stage of CBAM
Ukrainian cement exports to the EU are almost blocked during the implementation of the second stage of the Carbon Border Adjustment Mechanism (CBAM). Our country must take a proactive stance in supporting its own producers, emphasized Liudmyla Kripka, Executive Director of the Ukrcement Association.
"The conditions the Ukrainian cement industry faced at the start of the second phase of the CBAM, that is, at the beginning of this year, are more realistically described not as a 'barrier' but as an 'embargo.' We achieved default CO2 emissions for cement from Ukraine at 1,518 kg/t of clinker, which is almost double the actual figures, even with the wet production method," Kripka said at the "Trade wars: the art of defense" conference in Kyiv on Wednesday.
She also noted that there are currently no verifiers in the EU for the purposes of the CBAM, but even if there were, the arrival of European verifiers in Ukraine (this is a mandatory requirement in the first year) is unlikely due to the high level of security risks.
"Under these conditions, exports are fundamentally impossible! And we see the consequences: cement production has declined, budget revenues have shrunk, and foreign exchange earnings have fallen, leading to an even greater imbalance in the country's trade balance," Kripka noted.
The Ukrcement Association, both independently and with partners whose products fall under the CBAM mechanism, appealed throughout 2025 to the government, the European Commission, and all stakeholders regarding the application of the declaratory principle during the war and reconstruction period (this is possible under Part 7 of Article 30 of the CBAM Regulation on force majeure, which has devastating consequences for the economy and industrial infrastructure). However, according to Kripka, EC officials reassured the public that the impact of the CBAM implementation on the Ukrainian economy would be minimal. The results of the first quarter showed that the impact is significant, de facto blocking exports.
"The EC currently acknowledges that the default value is incorrect. They also see a problem with the certification of verifiers, which affects not only Ukraine but also EU countries. They promise to correct these issues within a month," Kripka said.
These encouraging statements have encouraged companies to resume exports, she said, but the risk of catastrophic sanctions remains for the companies and dealers that made these deliveries.
At the same time, the cement industry is one of the leaders in the domestic industry in systematic preparation for the full launch of the CBAM.
"We have made significant progress in using alternative fuels, have concrete examples of launching our own 'green' generation, conduct ongoing emissions monitoring, and have verified them with the country's existing verification systems," Kripka said.
Therefore, she emphasized, when asked "what is holding back the development of exports to EU countries," one can say "unequal conditions of competition."
"We see the world shifting to a model of economic pragmatism and protecting its own markets. Under these circumstances, Ukraine has very limited time to adapt its economy to the new reality. We must take a proactive stance in supporting our own producers," Kripka explained.
She cited neighboring Poland as an example of healthy "aggressive pragmatism." In 2024, Ukrainian cement exports to Poland totaled 854,000 tonnes. Poland produced 17.7 million tonnes of cement that year. In fact, Ukrainian exports accounted for 3.7% of total production. Meanwhile, front-page headlines in the press covered the "disappearance of Polish cement plants," and an inter-factional parliamentary group, "Support for the Development of the Polish Cement Industry," was established in the Polish Sejm.
Kripka emphasized that, to avoid being left behind in industrial competitiveness, our country must take a proactive stance in supporting its own producers.
