The event brought together more than 30 speakers from business, industry associations, government, the diplomatic community and the cultural sector. They discussed how Ukrainian companies can scale up exports during the war, enter new international markets and compete with global players.
Vodoviz took part in the panel “Integration into Global Markets: Lessons from Champions”. The discussion also featured Taras Kachka, Deputy Prime Minister for European and Euro-Atlantic Integration of Ukraine, and Serhii Smetiukh, Deputy CEO of Kronospan Ukraine.
Although Metinvest’s business has halved since 2022 due to the loss of control over and suspension of operations at facilities in the Donetsk region, the Group remains one of Ukraine’s largest private exporters. Its main steel markets are Europe, the Middle East and North Africa, while its iron ore is primarily exported to China.
“Everyone wants access to the European market. It is both the highest-margin market and one of the most competitive. We also want to expand our niche there,” Vodoviz added.
Export barriers
Modernised Ukrainian steel plants are already capable of competing with European producers on cost. However, because metallurgical enterprises are major employers in their regions, political considerations continue to limit competition.
“European policymakers are doing everything they can to prevent us from competing with their own major regional employers,” said Vodoviz.
Ukrainian exports are also hampered by the continued presence of Russian steel on the European market, which has led to semi-finished products being sold at dumping prices.
Another barrier is the introduction of the Carbon Border Adjustment Mechanism (CBAM), which imposes an additional levy on products with a high carbon footprint.
“Under the guise of the green agenda, a tax has been introduced that in reality has little to do with environmental protection. It is a tool for protecting the European market and stimulating European exports. As a result, we are being forced to reduce supplies because we cannot compete there. While other countries protect their markets, Ukraine is losing foreign-currency export revenues. That raises a question for the Ukrainian government: what are our joint actions, our calculations and our overall plan?” said Vodoviz.
At the same time, Taras Kachka described metallurgy as a highly competitive and politically sensitive market: “Steel, timber and agricultural products are all extremely tough markets, shaped by politics, tariffs, restrictions and other complexities.”
According to him, since 2022, the EU has lifted many restrictions on Ukrainian steel products and has not applied any anti-dumping measures.
“We are currently engaged in a delicate but constructive dialogue on preserving favourable conditions for Ukrainian steel exports to the EU. At the same time, the European steel industry has been developing through decarbonisation for almost 20 years, with fewer producers and state subsidies for those that remain. In Ukraine, by contrast, support for decarbonisation has effectively been zero,” Kachka added.
Competition
The lack of state support for decarbonisation also affects production costs, which have traditionally been a key competitive factor for Ukrainian steelmakers in the European market.
“Before the war, we were among the cost leaders thanks to the modernisation of our plants. During the war, however, costs have risen sharply because of expensive electricity, tariffs and constant shelling. At the same time, European steelmakers receive substantial subsidies for decarbonisation: EUR0.8-1.0 billion, on average. We have no such support because decarbonisation is not seen as an economic priority,” said Vodoviz.
Among the factors helping Metinvest to compete in the EU is the Group’s presence in Bulgaria, Italy, the UK, Romania and Poland.
“Today, Italy is one of our key markets: having local facilities and a team that understands both the Ukrainian context and customers’ needs really makes a difference,” he added.