The Cabinet of Ministers of Ukraine has made a decision to completely restrict the export of ferrous metal scrap in 2026, establishing a zero export quota for this type of strategic raw material for the metallurgical industry.
This is reported by Finway
Benefits for the economy and budget
The association of enterprises “Ukrmetallurgprom” has supported this initiative, calling it a state-oriented step. According to industry experts, retaining the entire volume of ferrous metal scrap within the country has significant financial implications. In particular, each ton of scrap processed at Ukrainian enterprises into finished products generates approximately 15,000 hryvnias in tax revenues for the budget.
“It is beneficial for the state to keep all scrap within the country, as 1 ton of scrap processed in Ukraine into finished products generates about ₴15,000 in taxes. In contrast, 1 ton of exported scrap without duties generates virtually no taxes (around ₴100 per ton), as the collection of scrap metal largely remains a ‘shadow’ business. Due to the export of scrap to the EU, the budget loses about ₴3.5 billion annually.”
In the case of exporting metal scrap outside Ukraine, tax revenues remain minimal — around 100 hryvnias per ton. Moreover, a significant portion of this market still operates in the ‘shadow’ sector. According to estimates, the annual leakage of scrap to the EU costs the state budget around 3.5 billion hryvnias.
Impact of European requirements and further legislative steps
Starting in 2026, the European Union will implement a mechanism known as the “carbon border adjustment mechanism” (CBAM). For Ukraine, which aspires to European integration and must meet environmental standards, it is crucial to retain the scarce raw material for metallurgy — ferrous metal scrap — within the country. This resource is necessary for producing steel with lower CO2 emissions, contributing to compliance with EU environmental criteria.
The parliament is considering the possibility of enshrining export restrictions at the legislative level to strengthen control over sectors that are critical for industrial development and the preservation of national interests.
It is worth noting that during the period from January to November 2025, scrap collection enterprises in Ukraine increased the export of ferrous metal scrap by 45.3% compared to the same period in 2024, reaching a volume of 380,165 tons.