The Cabinet of Ministers of Ukraine has made a decision to establish a zero export quota for ferrous scrap metal for the year 2026. This strategic decision aims to ensure the internal demand of the metallurgical industry for this important raw material.
This is reported by Business • Media
Support for Industry and Fiscal Advantages
The association of enterprises “Ukrmetallurgprom” has approved the imposed restriction, emphasizing its importance for the development of national metallurgy. It is noted that keeping all scrap metal within the country is economically viable, as processing one ton at domestic enterprises generates approximately 15,000 hryvnias in tax revenues. In comparison, exporting one ton of scrap metal without duties brings only about 100 hryvnias to the budget, as this sector often operates in the “shadow” segment.
“It is beneficial for the state to keep all scrap metal within the country, as 1 ton of scrap processed in Ukraine into finished products generates approximately ₴15,000 in taxes. In contrast, 1 ton of exported scrap without duties effectively generates no taxes (around ₴100 per ton), as scrap metal collection remains largely a ‘shadow’ business. Through the export of scrap to the EU, the budget loses about ₴3.5 billion annually.”
European Requirements and Legislative Initiatives
Starting in 2026, the European Union will introduce the Carbon Border Adjustment Mechanism (CBAM). For Ukraine, which seeks to meet environmental standards and integrate into the European space, it is extremely important to keep ferrous scrap metal within the country. This raw material is scarce for steel production with minimal CO2 emissions, aligning with modern environmental requirements. At the same time, the Verkhovna Rada plans to enshrine the export restrictions on scrap metal at the legislative level.
It is worth noting that from January to November 2025, Ukrainian enterprises collected and exported 380,165 tons of ferrous scrap metal, which is 45.3% more than in the same period of 2024. This underscores the relevance of the adopted decision for preserving strategic raw materials and the stability of national metallurgy.