Members of the European Parliament raised Ukraine's Carbon Border Adjustment Mechanism situation in a formal committee meeting for the first time in May 2026, challenging the European Commission's refusal to grant a war-time exemption. Rapporteur Mohammed Chahim called for a separate resolution on Ukraine, while the Commission declined to comment. Ukraine's steel sector faces carbon costs of up to one hundred and forty euros per metric ton of steel exported to Europe. Ukrainian analysts warn of a real GDP drop of up to six point four percent, far exceeding the Commission's own projections.