The Association of Enterprises “Ukrmetallurgprom,” which represents the interests of Ukraine’s mining and metallurgical complex, supported the Cabinet of Ministers’ decision regarding the temporary restriction on the export of ferrous metal scrap.
This is reported by Finway
Government Decision and Its Consequences for Metallurgy
On December 31, 2025, the Cabinet of Ministers adopted Resolution No. 1795, which establishes a zero quota on scrap metal exports for 2026. This decision was a response to the rapid increase in the export of this strategic raw material, which in recent years has created a serious shortage of scrap on the domestic market and threatened the stability of domestic metallurgical enterprises.
Budget Losses and Economic Benefits
A significant portion of scrap metal exports was conducted bypassing the export duty of 180 euros per ton: the raw material was directed to EU countries, from where it was then re-exported to Turkey and India. Due to this scheme, the state budget lost several billion hryvnias annually, while Ukrainian metallurgical plants faced a shortage of raw materials. As a result, this strategic resource ended up in the hands of competitors of Ukrainian metallurgists abroad.
“On behalf of all workers in the metallurgical sector, I would like to thank the Government and Prime Minister Yulia Svyrydenko for adopting this urgent and economically justified measure. It is beneficial for the state to keep all scrap metal within the country, as metallurgical enterprises, by processing the raw material, produce finished products, generate foreign currency earnings from their export, and ensure revenue for budgets at all levels,” said the president of “Ukrmetallurgprom,” Oleksandr Kalenkov.
According to experts’ estimates, processing one ton of scrap metal into steel in Ukraine brings about 14,000–15,000 hryvnias in taxes to the state budget, while exporters, operating mostly in the shadows, pay only about 100 hryvnias per ton. Therefore, the temporary restriction on scrap metal exports is seen as an important step towards maintaining economic stability and supporting the country’s defense capability.
Special attention is given to the decarbonization of industry. Starting January 1, 2026, the European Union will implement a carbon border adjustment mechanism (CBAM), which includes duties on carbon-intensive goods, including steel. Since no exceptions are provided for Ukraine, using scrap metal in steel production will help reduce CO2 emissions and enhance the competitiveness of Ukrainian metallurgy in the international market.