“According to her, the effects of CBAM introduction without delay or special conditions for Ukraine may be catastrophic.”, – WRITE: www.unian.ua
According to her, the effects of CBAM introduction without delay or special conditions for Ukraine may be catastrophic.
Photo ReutersThe introduction of a mechanism of border carbon adjustment (CBAM) to the European Union has significant economic risks for Ukraine, in particular in wartime. This was emphasized by the founder of the National Association of the Mining Industry Kseniy Orinchak.
In her speech, she called on all the branches of the executive to strengthen the dialogue with European partners on the conditions of CBAM application for Ukraine.
“I urge the government, the President’s office. The whole government, all agencies, all ministries, first of all, is the Ministry of Economy, the Ministry of Finance, the Viceremier’s Office, both one and the other. The Ministry of Economy, the European Integration Office, and so on, to start talking to European partners more.
According to her, the consequences of the introduction of CBAM without delay or special conditions for Ukraine may be catastrophic:
“Because it is a year to understand for yourself, about one and a half billion dollars or euros … We will only spend, for example, on the fact that it will not come to return foreign exchange earnings to the state, and we will not be able to survive as enterprises in the markets of the European Union.”
Orinchak stressed that Ukraine has a legal basis for initiating CBAM deferral:
“There is such an article 30.7 on delaying the use of force majeure. And there are countries that use it. This is a military time, it is a force majeure. And Ukraine must require such negotiations.”
She also warned that the delay in negotiations could have consequences not only for the economy but also for the country’s defense capability:
“Because billions of dollars are at stake in order for them to help our military mother better weapons, survive as a country. We, unfortunately, can lose it. It is actually a trade war with the European Union.”
Earlier, the experts of the largest business association of energy companies Energy Club emphasized that CBAM has potential risks for the Ukrainian economy – from reducing exports and foreign exchange revenues to additional burden on industrial enterprises.