Alexander Vodoviz, Head of the Office of Metinvest Group CEO: Metinvest.
At the Kyiv International Economic Forum (KIEF), Aleksandr Vodoviz, Chief Executive Officer of Metinvest Group, shared his vision of the key challenges and opportunities for the Ukrainian steel industry in the context of European integration. He emphasised the need for a level playing field in the European market and highlighted the risks associated with EU environmental policy and the importance of supporting Ukrainian producers. This was reported by TimeUkraineIsrael, citing the company’s press service.
The KIEF, one of the largest economic forums in Eastern Europe, brought together more than 100 experts, including representatives of business, government and society, to discuss the strategic directions of Ukraine’s accession to the EU. One of the central topics was the issue of creating fair conditions for Ukrainian companies in the European market.
Aleksandr Vodoviz took part in a panel discussion on “How Ukraine can become part of the EU and protect its economic interests”, where he stressed the importance of equal access for Ukrainian steelmakers to the EU market, which is the most prestigious and competitive in the world. According to him, joining the EU will open up significant opportunities for Ukrainian producers, but there are a number of complex issues that need to be addressed.
The importance of a level playing field
“Why do we aspire to the EU? Because it is the best market for manufacturers. This is what we have to strive for, as Europe offers huge opportunities and experience for Ukrainian companies,” Vodoviz said. However, he stressed that in order for Ukraine to become part of this market, Ukrainian companies need to have equal conditions to compete with European producers.
Risks and environmental standards
One of the main risks faced by the Ukrainian steel industry is the EU’s Carbon Border Abatement Measure (CBAM). Vodoviz noted that Ukraine needs support at the state level to effectively implement environmental standards, as the EU allocates billions of dollars to modernise its plants, while Ukrainian enterprises do not receive adequate financial assistance to meet these standards.
“Europe is ready to help its producers through grants for environmental modernisation. In Ukraine, however, companies are offered loans at high interest rates, which creates an unequal playing field,” said the head of Metinvest’s CEO’s office. Vodoviz stressed that without support in the form of grants or favourable conditions for modernisation, the Ukrainian steel industry will not be able to compete on equal terms with European companies.
Competition with Russian producers
Mr Vodoviz also expressed concern about competition with Russian steel companies, which are actively supplying their products to the European market despite the sanctions. He noted that, despite the sanctions, Russian producers remain strong players, while Ukrainian companies face great difficulties due to the inability to access cheap slabs purchased by European producers.
“We have to compete on fair terms, as Europe does not currently provide us with the same opportunities as other producers, including Russians,” he stressed.
Prospects and recommendations
Vodoviz called for the creation of a level playing field for Ukrainian steelmakers in the European market. He believes that if Ukraine is granted access to the EU market on the same terms as European companies, Ukrainian producers will be able to successfully compete, develop their products and increase exports.
“We need to create fair rules of the game so that we can work on an equal footing with European companies. Otherwise, without government support and proper financial conditions, we will not be able to realise our potential in the European market,” Vodoviz concluded.
