Russia Challenges EU CBAM

[ABS News Service/28.09.2026]

Russia pressed ahead with its second request to establish a WTO dispute settlement panel to adjudicate against the European Union’s controversial Carbon Border Adjustment Mechanism package and the underlying export subsidy of the EU scheme for trading greenhouse gas emission allowances.

Concurring with Russia’s second request, the DSB gave the green signal for establishing the panel – the first of its kind to adjudicate on the CBAM, said a person familiar with the developments.

Russia argued that the CBAM package creates significant trade barriers for covered goods imported into the EU and is inconsistent with the EU's obligations to the WTO. Moscow further argued that the EU's allocation of allowances to certain companies under the Emissions Trading System amounts to an export subsidy designed to strengthen the competitiveness of certain domestic industries.

In a sharp response, the EU stated it is participating in the proceedings not because it views Russia’s actions as legitimate, but because it firmly supports the rules-based multilateral trading system.

Brussels maintained the situation was extraordinary, noting that the Russian Federation – which it said continues to wage a war of aggression on Ukraine in violation of international law – is seeking to rely on international law to improve access for exports into the EU market. However, the EU noted it is confident that the CBAM and ETS are WTO-compatible.