Restrictive measures, challenges with securing financing, and protective tariffs like the European CBAM are the factors currently hindering the recovery of Ukrainian industry, which has suffered from Russia’s military invasion.
This was reported by Volodymyr Zhukov, Marketing Director of the Metinvest Group, during the Ukraine-Japan Forum on Promoting Economic Recovery in Tokyo.
Among the challenges for an export-oriented company like Metinvest, he primarily highlighted the numerous restrictive measures being introduced worldwide, especially in Europe, to support local manufacturers.
“CBAM has been introduced, which will come into full effect on January 1, 2026. We must be prepared to avoid its negative consequences. In this context, international cooperation and the participation of the global community working on this issue are extremely important,” Zhukov noted.
In his opinion, for Ukraine to gain maximum value from its ore reserves through the production of high value-added products, international cooperation in investment and financing is needed, as well as support to stop the aggressor.
“Although economic sanctions are imposed on Russia, unfortunately there are exceptions allowing steel sales to the European Union. The revenues from this go to the aggressor’s budget and finance the war. This is where the international community must play a leading role,” Zhukov added.
The Metinvest Marketing Director also shared the company’s experience with securing financing during the war. According to him, a determining factor is the cost of financing, which remains high due to country risk and accordingly increased interest rates. International cooperation helps find solutions and instruments to ensure more affordable loan rates.
“This year, we secured financing for one of the projects we are implementing together with a Finnish equipment supplier. The funds were obtained through the Finnish export credit agency. This is a great example of international cooperation with significant potential for scaling,” Zhukov said.
Meanwhile, Ukraine’s Minister of Economy, Environment and Agriculture Oleksiy Sobolev noted that one of the instruments to reduce country risk is insurance against war risks. A bill has already been registered in parliament providing for the creation of an agency that will compensate the costs of such insurance through global reinsurers for companies operating in Ukraine.
Recall that according to a study by the Federation of Employers of Ukraine, if CBAM is introduced already in 2026, Ukraine could lose 4.6% of GDP.
