Intl cooperation is crucial for strengthening sanctions against aggressor, preparing Ukraine for CBAM – Metinvest CMO
International cooperation is crucial for strengthening sanctions against the aggressor and preparing Ukraine for CBAM - a cross-border carbon adjustment mechanism.
This opinion was expressed by Chief Marketing Officer (CMO) of Metinvest Group Volodymyr Zhukov during the Ukrainian-Japanese Forum on Promoting Ukraine's Economic Recovery in Tokyo.
According to him, after the loss of the enterprises in Mariupol, Metinvest continues to operate, but with smaller production volumes. Currently, the company generates about 70% of its business income from exports of products, and 30% from the domestic market. Steel consumption is gradually recovering, including thanks to infrastructure projects in which Metinvest has strong expertise and is a steel supplier.
He added that compared to 2021, the company significantly reduced investments, focusing on supporting current activities and implementing small investment projects in the field of energy generation and production.
"However, our strategy has not changed - to be a producer and supplier of high-quality iron ore raw materials and steel with low emissions. After all, new technologies for production of low-carbon steel require precisely such ore, and Ukraine has an advantage here due to significant reserves and potential for their extraction and enrichment," Zhukov said.
He noted that to restore the product line, which is missing after the loss of the Mariupol plants, the company will need additional steelmaking and rolling capacities.
"The implementation of these plans will largely depend on how successfully we manage to maintain current production volumes," stated the marketing director of Metinvest.
Among the challenges for such an export-oriented company as Metinvest, he highlighted the numerous restrictive measures being implemented in the world, in particular in Europe, to support local producers.
"CBAM has been introduced, which will enter into full force 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 explained.
The top manager clarified that in order for Ukraine to obtain maximum value from its ore reserves through production of high-value-added products, international cooperation in the field of investment and financing, as well as support in stopping the aggressor, is needed.
"Although there are economic sanctions against Russia, unfortunately, there are exceptions that allow steel to be sold to the European Union. The income from this goes to the aggressor's budget and finances the war. This is where the international community should play a major role," the marketing director believes.
The CMO also shared the company's experience in attracting financing during the war. According to him, the 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 tools to ensure more affordable credit rates.
At the same time, Minister of Economy, Environment and Agriculture of Ukraine Oleksiy Sobolev noted that one of the tools for reducing country risk is insurance against war threats. A draft law has already been registered in the parliament, which provides for the creation of an agency that will compensate for the costs of such insurance through global reinsurers for companies operating in Ukraine.