The Cabinet of Ministers has introduced a zero export quota for 2026 on the export of ferrous scrap (scrap metal), a strategic raw material for the metallurgical industry.
The relevant changes are set out in its Resolution No. 1795 “On the approval of lists of goods subject to licensing for export and import, and quotas for 2026” dated December 31, 2025.
According to the document, the quotas for goods whose export is subject to licensing are listed in Appendix 1. In particular, a zero quota has been set for ferrous metal waste and scrap; ferrous metal ingots for remelting (charge ingots) under code 7204 (according to the Ukrainian Classification of Goods for Foreign Economic Activity). Zero quotas are also set for copper waste and scrap under code 7404 00 and for electrical and electronic waste and scrap used primarily for the extraction of precious metals under codes 8549 21 00 00 and 8549 29 00 00.
Dmytro Kysilevsky, deputy chairman of the Verkhovna Rada Committee on Economic Development, welcomed the government’s decision in a comment on his Facebook page, noting that strategically important raw materials should be processed in Ukraine, rather than being exported abroad without control, and should create jobs, added value, and tax revenues here.
According to the expert, this principle is one of the fundamentals of economic success, as proven by dozens of developed countries. Ukraine also has successful experience in implementing it: duties on sunflower seeds and a moratorium on roundwood once created entirely new industries and attracted billions in investments. And the recently introduced duties on soybeans and rapeseed have already significantly increased the volume of domestic processing, the deputy head of the parliamentary committee emphasized.
“The government’s decision to set zero export quotas for industrial timber and scrap from Ukraine for 2026 is an important example of the implementation of this principle. I would like to thank Prime Minister Yulia Svyrydenko and Minister of Economy Oleksiy Sobolev for their position and understanding of national economic interests,” wrote the MP.
Kysilevsky explained that it is profitable for the state to keep all scrap metal within the country, since 1 ton of scrap metal processed in Ukraine into finished products generates approximately UAH 15,000 in taxes. On the other hand, 1 ton of exported scrap metal without customs duties actually generates no taxes (within 100 hryvnia per ton), since scrap metal procurement remains largely a “shadow” business.
He noted that scrap metal exports to the EU are de facto a scheme to circumvent customs duties, with losses to the budget amounting to about UAH 3.5 billion per year. Currently, the customs duty in the EU is 0, while in other countries it is EUR 180. Scrap metal from Ukraine is mainly re-exported outside the EU. If the 380,000 tons of scrap metal exported in 2025 were processed in Ukraine, the state would receive UAH 5.7 billion in taxes.
“From 2026, the EU will introduce the so-called CBAM ”carbon duty.” From the point of view of Ukraine’s accession to the EU and compliance with environmental requirements for industry, it is important to keep all scrap metal within the country. After all, scrap metal is a scarce raw material for smelting steel with lower CO2 emissions. Ferrous and non-ferrous scrap metal is a strategic raw material for ferrous and non-ferrous metallurgy, which are important basic sectors of the economy. Of course, companies that want to profit from the uncontrolled export of raw materials are opposed to these decisions. But raw material exports are a niche for poor countries. Ukraine has abandoned this model, hopefully for good,” Kysilevsky emphasized.
The MP added that one of the tasks for the Verkhovna Rada in 2026 is to enshrine the decision to restrict the export of strategic raw materials in law. These restrictions should remain in force as long as external circumstances and the need for recovery require it.
As reported, in May 2025, the Ministry of Economy of Ukraine initiated the introduction of a licensing and quota regime for the export of ferrous metal scrap (scrap metal) with a zero quota. The relevant provision was included in the draft government resolution “On Amendments to Appendix 1 to the Resolution of the Cabinet of Ministers of Ukraine No. 1481 of December 24, 2024,” which was then published by the Ministry of Economy for public discussion.
Deputy Director of the state-owned enterprise “Ukrpromzovnishchexpertiza” Serhiy Povazhnyuk, in an interview with telegraf.com.ua, said that Ukrainian metallurgical enterprises could increase steel production by 17% in 2026, to 8.9 million tons from 7.6 million tons in 2025, provided that the scrap metal shortage is overcome. At the same time, he noted that the Ukrainian metallurgical industry is experiencing an acute shortage of ferrous metal scrap, in particular due to the growth in the volume of this raw material being exported abroad.
According to his calculations, 1 ton of scrap metal, which is processed into metal products at Interpipe’s facilities, for which scrap is the main raw material, brings the state UAH 7,500 in taxes. In addition, 1 ton of scrap metal used at Metinvest Group’s plants generates about UAH 9,300 in tax revenues to budgets at all levels.
As Povazhnyuk emphasized, this is a direct benefit that the state receives by keeping all scrap metal in the country and processing it into steel. In addition, such processing has a multiplier effect on the entire economy, as it stimulates growth in related industries, such as the production of iron ore raw materials, coke, and ferroalloys.
“According to our data, in 2024, the largest exporting companies, which accounted for almost 90% of Ukrainian scrap metal exports, exported a total of 247,000 tons of raw materials abroad, paying a total of only UAH 12.3 million in taxes. Thus, the state received an average of UAH 50 in taxes for each ton of scrap metal exported. The official number of employees in these companies was only a few dozen people,” the expert said.
As reported, in January-November 2025, scrap metal collection companies in Ukraine increased their exports of ferrous metal scrap by 45.3% compared to the same period in 2024, from 261,578 tons to 380,165 tons.
In 2024, Ukraine’s scrap metal collection companies increased their exports of ferrous metal scrap by 60.7% compared to 2023, to 293,190 thousand tons from 182,465 thousand tons. In monetary terms, scrap exports for the year increased by 73.2% to $91.311 million from $52.723 million.
Earlier, Valentin Makarenko, chairman of the board of Interpipe Vtormet, said in an interview with Interfax-Ukraine that ferrous metal scrap exports have always been and remain a threat to the Ukrainian metallurgical industry, as they exacerbate the shortage of this raw material on the domestic market. In addition, this problem is compounded by the fact that during the war, the area suitable for scrap collection is shrinking.
“At present, I do not see any other effective mechanisms for stabilizing the market and reducing scrap exports, except for an administrative ban on the export of this strategic raw material outside Ukraine at the state level,” the chairman of the board concluded.
The Cabinet of Ministers has extended the ban on imports of goods originating from Russia into the customs territory of Ukraine until December 31, 2026.
According to Resolution No. 1707 of December 24, the government amended Cabinet Resolution No. 1147 of December 30, 2015, which is updated annually.
In addition, by Resolution No. 1706, the government extended the term of Resolution No. 1146 of December 30, 2015, which establishes import duty rates on goods originating in the Russian Federation, for another year, until December 31, 2026. These instruments have been in effect since 2015 as countermeasures in response to economic pressure that has been going on for many years.
As reported, in 2015, the Cabinet of Ministers adopted two resolutions restricting trade with Russia in response to the actions of the aggressor state against Ukraine, in particular, the unilateral termination by the Russian Federation of the Agreement on the Free Trade Area within the CIS with regard to Ukraine and the introduction of bans on the import of a number of goods of Ukrainian origin from January 1, 2016. The validity of these acts is extended every year in December.
The moratorium on the export of unprocessed timber from Ukraine, which was introduced on November 1, 2015, for 10 years, has been temporarily extended by a decision of the Cabinet of Ministers of Ukraine until the end of the year in the form of a zero export quota.
“At the request of businesses, the government has made an important decision to temporarily ban the export of unprocessed timber. This is a necessary step to take care of people in winter, preserve the work of our enterprises, and reduce the burden on the environment,” Ukrainian Prime Minister Yulia Svyrydenko wrote on Friday on Telegram following her trip to the Rivne region.
She noted that the volume of logging in Ukraine has significantly decreased during the full-scale invasion by the Russian Federation. “Enterprises that could be operating are idle or working at minimum capacity due to a lack of wood. The army needs wood for its own needs. Life in rural communities, where firewood is a key resource for heating in winter, depends on the availability of wood,” the head of government wrote.
In addition, according to Svyrydenko, the war has caused significant damage to the environment, as part of the forests are temporarily occupied or damaged by hostilities. “Therefore, timber exports will create an additional burden on the environment,” the prime minister noted.
“The decision provides for export licensing – a zero quota until the end of the year. We continue to work on further steps to systematically address the timber shortage,” Svyrydenko said.
The head of the State Forest Resources Agency of Ukraine, Viktor Smal, previously told the agency that according to the law adopted in 2015, the moratorium on the export of unprocessed timber of all tree species, except pine (a 10-year moratorium was introduced for pine on January 1, 2017), will end on November 1, 2025.
Smal clarified that the extension of the moratorium for the duration of martial law and for another 10 years after it is provided for in the draft law on the timber market, which is currently being prepared for its first reading.
“In my opinion, 10 years is definitely enough to recover from all these shocks in terms of production and investment,” said the head of the State Forestry Agency.
He believes that the moratorium has been beneficial because a large number of production facilities have expanded and opened in Ukraine. “If we look at the structure of our exports, we will see that the depth of our wood processing leaves much to be desired. We should try to make not boards, not beams, not pallets, but cribs, kitchen chairs, tables, and export them,” Smal added.
As reported, in January-August 2025, Ukraine exported $1,131.3 million worth of wood and wood products, which is 15.5% more than in January-August 2024. However, during the same period, wood and wood products worth $160.5 million were imported, which is 8.8% more than in January-August 2024.
During this period, wood and other fibrous cellulose materials worth $186.2 million were exported (19.1% more than in January-August 2024), and $594.3 million worth were imported (1.7% less than in January-August 2024).
As part of its 19th package of sanctions, the European Union will impose a ban on transactions with five Russian credit institutions from November 12: Alfa Bank, MTS Bank, Absolut Bank, Zemsky Bank, and NKO Istina, according to an EU statement.
In addition, Belarusian Alfa Bank, Sberbank, VTB, Belgazprombank, BelVEB, as well as VTB’s subsidiary in Kazakhstan and VTB’s branch in Shanghai have been added to the EU sanctions list.
BAN, BANK, BELARUS, EUROPEAN UNION, RUSSIAN FEDERATION, SANCTION, TRANSACTION
China has unveiled a new action plan for the steel industry, which includes a set of measures to address the chronic problem of oversupply. This comes amid Beijing’s intensified efforts to end a series of price wars raging in the economy, writes the South China Morning Post.
The plan, which includes a strict ban on the commissioning of additional capacity and measures to accelerate the decommissioning of obsolete equipment, could serve as an example for other industries suffering from overproduction and excessive competition.
The document, published on Monday by the Ministry of Industry and Information Technology in conjunction with a number of other agencies, calls for strict control over steel production capacity and volumes. It stresses that “coordinated efforts on both the supply and demand sides” are needed to stabilize the industry.
The plan aims to “accelerate the transition from old to new growth drivers, develop new productive forces, and further enhance the resilience and security of industrial and supply chains.” The steel industry should strive to increase added value by approximately 4% annually over the next two years and complete the modernization of more than 80% of steel production capacity to achieve ultra-low emissions by the end of this year.
Although Chinese steel companies account for more than half of global production, the average profitability of listed companies in 2024 was minus 0.26% due to structural problems in the industry, the report said.
According to CINDA Securities, 7.44 million tons of five major types of steel products were produced in the country in the first half of September, approximately 5.8% more than in the same period a year earlier. Steel inventories increased by 12.1% to 11.01 million tons, while consumption fell by approximately 4.6% to 8.5 million tons.
The composite steel price index is currently at 3,507 yuan ($493) per ton, which is approximately 2.6% higher than last year’s figure, but approximately 14% lower than in 2023.
In 2024, China reduced steel production by 1.7% to 1.005 billion tons.
The Cabinet of Ministers has adopted a draft law “On Amendments to the Law of Ukraine ‘On Sanctions’ on the Prohibition of the Use of Software Products and Access to Electronic Information Resources,” which, in particular, proposes to ban electronic websites in Ukraine developed by foreign persons subject to sanctions, according to Taras Melnychuk, a representative of the Cabinet of Ministers in the Verkhovna Rada.
According to his message on the telegram channel, “the draft law proposes to amend the Law of Ukraine ‘On Sanctions’ by defining new types of sectoral sanctions, in particular, a ban on the distribution and use of software products on the territory of Ukraine by legal entities whose components originate in a foreign country, which has been sanctioned under the Law of Ukraine “On Sanctions”, or whose developer or copyright holder is a legal entity (individual) resident of such a foreign state or a legal entity whose share in the charter document is foreign, as well as a ban on the use of electronic websites.
In addition, it is proposed to prohibit the use of software products from entities engaged in terrorist activities, or whose developers or copyright holders are foreign legal entities or individuals subject to sanctions.
Sanctions may also be imposed on software products created using the source or object code of software products or their components subject to sanctions; access to electronic information resources on the Internet (web pages, websites, other web resources), electronic communication networks, electronic communication systems, information systems, information and communication systems may be prohibited.
