PJSC ArcelorMittal Kryvyi Rih (AMKR, Dnipropetrovsk region) is operating at a loss due to high energy prices, while an additional negative factor is the CBAM (Carbon Border Adjustment Mechanism) introduced by the EU starting in early 2026, the company's CEO Mauro Longobardo said in an interview with Interfax-Ukraine.

"Our goal is to bring the plant at least back to break-even. Today we are not there because of this increase in Q1. Last year we finished with extremely high utilities and energy prices. The Q1 so far is even worse. We are talking now about 30% worse, and it was not forecasted. During last year, we tried to make a budget approaching zero-level in terms of losses. Q1 was not predicted to be so devastating due to electricity prices," the CEO said.

According to him, energy resources represent a large share of costs, especially during the winter period. An additional factor that hit the company in January–March 2026 was the introduction of CBAM. Over the past several years (and especially last year), the government together with the European Commission held many discussions about obtaining preferential treatment for Ukraine, a logic that is very simple and natural given the wartime situation, Longobardo noted.

For its part, AMKR, like other companies, already had the necessary financing in 2021 to invest in modernizing the enterprise and ultimately comply with CBAM requirements. However, those investments stopped and all available funds were spent.

"Currently, we do not have any funding for investing in this type of technology. So, we were expecting (and that is not only our case) a waiver for CBAM. At least, for a certain period. This waiver would allow us, right after the war finishes, to start a normal business again and to accumulate enough finances for this type of investments," Longobardo explained.

"Finally, the EU stated that there would be no waiver for Ukraine (and for nobody). As a result, starting from January, our European customers (which we obtained so 'quickly' in the last 3 years and which, in 2025, bought 920 000 tonnes (1/3 of our production)) cancelled all the orders. They refused everything. Why? Because they need to pay from $60 to $90 additionally for each tonne of product they receive from Ukraine," the CEO explained.

The CEO clarified that the main impact of CBAM on AMKR products is that this tax is paid by the importer. Therefore AMKR began 2026 almost with "zero" orders from Europe.

"Prior to the war Ukraine had some quotas. Our sales to Europe were almost zero: from 100,000 to 150,000 tonnes per year over total production of 5.5 million tonnes. When the war broke, Europe provided Ukraine with a waiver to the quota and to any tariff to the country's product exporters. But we couldn't start selling our products immediately: we needed to qualify with the customer and convince them to choose us instead of another supplier like Egypt, Northern Africa, Algeria etc. And we achieved that: in 2025, we sold to Europe 920,000 tonnes. The customers were happy," the agency's interlocutor said.

He said that The business plan for 2026 was considering a waiver, so we thought about selling to the EU a little bit more: from 1 million to 1.2 million tonnes. "Obviously, when the customers in Europe were given information that they have to pay additional $60-$90 per each tonne from Ukraine (depending on the product), they stopped everything and we were not able to convince them. To sum it up, in Q1, I've already have unsold 300,000 tonnes of products," he said.

"To summarize, Q1 will be a nightmare for us. And it is my responsibility to discuss this problem with the Group which pays the bills on the losses thinking about the future. But when the future is becoming worse and worse right now, then, there is a problem. Because everything is based on the hope that the future will be better: reconstruction, investments, end of the war. All of this looks positive. However, if this is cancelled one-by-one, how can we persuade the Group to continue investing in Ukraine if there is no immediate or at least medium-term future for the country?" the CEO said.

He also recalled that in early February AMKR announced the closure of its blooming mill, and those plans remain in place.

"It will probably be executed at the end of May. Unfortunately, we are not able to continue operations of that mill because its ownership causes more costs than any other manufacturing route. In a situation like ours, having a manufacturing route with $50-$60 higher costs is not possible at all," the CEO said.

At the same time, he stressed that AMKR must fulfill everything that was promised to its customers. Closing by May was dictated by necessity to operate it in the first five months of the year.

"Now, maybe, it will be a little bit less because we do not operate continuously. Therefore we, probably, will need to extend a little bit to June when we will be able to roll the full amount of material - billets that we cover the needs of this year when we will proceed with the closure of that mill," Longobardo said.

ArcelorMittal Kryvyi Rih is the largest producer of rolled steel in Ukraine. It specializes in long products, in particular rebar and wire rod.

ArcelorMittal owns ArcelorMittal Kryvyi Rih, the largest mining and metallurgical plant in Ukraine, as well as a number of smaller companies, including PJSC ArcelorMittal Beryslav.