Russian Steel Industry Faces EU Carbon Border Adjustment Impact

Trade Analysis

A comprehensive analysis reveals the potential impact of the EU's Carbon Border Adjustment Mechanism (CBAM) on Russian steel exports, with estimated additional costs of 15-22% per ton on affected products.

Key Findings

• Annual cost impact estimated at $2.1 billion for Russian steel exporters
• Severstal, NLMK, and MMK are the most exposed producers
• Redirection of exports to Asian markets partially offsets European losses
• Domestic decarbonization investments of $8.5 billion planned through 2030

Strategic Response

Russian producers are accelerating investments in hydrogen-based steelmaking and carbon capture technologies. The government has proposed countermeasures including export tax adjustments and R&D subsidies for green steel technologies.