The SVAM tax does not benefit the environment, but is an option to influence trade, experts say.
Ukraine is suffering huge losses due to the implementation of European carbon CBAM duty mechanisms European CBAM duty. The authorities have to negotiate with the EU leadership about the postponement because of the war. It was discussed at the round table How SWAM will undermine the Ukrainian economyreports Interfax-Ukraine.
As GMKCenter’s chief analyst Andrey Glushchenko said, the costs for SVAM will grow for the Ukrainian economy every year, and may significantly weaken it. In the first year, the economic loss from the additional tax will be $202 million, and by 2030 it will increase to $1.44 billion.
Tarasenko believes that the Ukrainian authorities should negotiate with the EU on the application of Art. 30.7 of the CBAM Regulation: it provides that “the Commission may change the approach to the application of the CBAM for countries facing an unpredictable, exceptional and unprovoked situation with devastating consequences for the economic and industrial infrastructure.”
“We have been at war for three years,” emphasized the expert.
In this regard, Olga Semkiv, Director of Sustainable Development Projects at ArcelorMittal Krivoy Rog (AMKR), said that it is not yet possible to pay attention to the direction of decarboposition, and there is also no expertise to compile appropriate reports within SVAM framework.
“We expect a postponement of obligations under NEAM, and all metallurgical companies believe that there are grounds for this – this clause should be applied due to the situation in Ukraine. We really want the dialogue with between the EU and Ukraine on law enforcement to continue,” he emphasized to Semkov.
In this regard, the representative of the parliamentary subcommittee on industrial policy of the Committee on Economic Development, Musa Magomedov, said that Ukraine needs to take the initiative in negotiations with the EU to postpone the obligations under NEAM, because the country is in the state. of war.
And Svetlana Mikhailovskaya, Deputy Director of the European Business Association (EBA), noted that, according to some experts, today CBAM does not benefit the environment, but is an option to influence trade.
Earlier, Politico reported that Europe is helping Ukraine with funding on the one hand, and on the other it is promoting SVAM’s carbon duty, which will cost Ukraine 1.4 billion euros annually. At the same time, this damage can be avoided by starting negotiations with the EU, because the CBAM law has a provision where a country can receive tax benefits if it has force majeure events. Ukraine has grounds to ask the EU for a delay in this matter because of a full-scale war with Russia. The environmental tax SVAM will take effect in 2026.
Source: korrespondent
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