Ukrainian cement exports to the EU are nearly blocked with the implementation of the second phase of the CBAM (Carbon Border Adjustment Mechanism); our country must take a proactive stance in supporting its own producers, emphasized Lyudmila Kripka, Executive Director of the “Ukrcement” Association.
“The conditions that the Ukrainian cement industry faced at the start of the second phase of the CBAM, that is, at the beginning of this year, can be more realistically described not as a ‘barrier’ but as an ‘embargo.’ We were assigned default CO2 emission values for cement from Ukraine at 1,518 kg/t of clinker, which is nearly double the actual figures, even using 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 (a mandatory requirement in the first year) is unlikely due to the high level of security risks.
“Under such conditions, exports are impossible in principle! And we see the consequences: cement production has decreased, 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 on its own and together with partners whose products fall under the CBAM mechanism, appealed throughout 2025 to the government, the EC, and all stakeholders regarding the application of the declaratory principle for the duration of the war and reconstruction (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 them that the impact of the CBAM’s implementation on the Ukrainian economy would be minimal. First-quarter results showed that the impact is significant, effectively blocking exports.
“Currently, the EC acknowledges that the default value is incorrect; they also see a problem with the certification of verifiers, which concerns not only Ukraine but also EU countries. They promise to correct these issues within a month,” Kripka said.
According to her, these encouraging statements have prompted companies to resume exports, but the risk of catastrophic sanctions remains for companies and dealers that made these shipments.
At the same time, the cement industry is one of the leaders in domestic industry in terms of systematic preparation for the full launch of the CBAM.
“We have made significant progress in the use of alternative fuels, have concrete examples of launching our own ‘green’ power generation, conduct continuous emissions monitoring (CEM), and have verified these emissions using verifiers available in the country,” Kripka said.
Therefore, she emphasized, in response to the question “what is holding back the development of exports to EU countries,” one can point to “uneven competitive conditions.”
“We see that the world is shifting toward a model of economic pragmatism and the protection of domestic markets. Under these conditions, 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 tons. Poland produced 17.7 million tons of cement that year. In fact, exports from Ukraine accounted for 3.7% of Poland’s production. Meanwhile, front-page headlines in the press spoke of the “disappearance of Polish cement plants,” and an inter-factional parliamentary group called “Support for the Development of Poland’s Cement Industry” was established in the Polish Sejm.
Kripka emphasized that in order not to be left behind in industrial competitiveness, our country must take a proactive stance in supporting its own producers.
