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 decided to extend restrictions on the export of timber and scrap metal until the end of 2026, Prime Minister Yulia Svyrydenko announced.
“The decision provides for a licensing regime with zero quotas for the export of unprocessed wood, fuel wood, as well as ferrous metal and copper scrap. This allows Ukraine to preserve strategic raw materials and direct them to domestic processing needs,” Svyrydenko wrote on Telegram following Wednesday’s government meeting.
According to her, scrap metal is a critically important raw material for the Ukrainian metallurgical and foundry industries.
“Despite the export duty, scrap exports have been growing, often in transit to third countries without creating added value for Ukraine. Domestic processing, on the contrary, provides jobs, tax revenues, and products necessary for defense and recovery. Also, the use of scrap in metallurgical production reduces CO2 emissions, which is important given the EU requirements,” the prime minister added.
As for timber, she said the government had extended some of the restrictions introduced at the end of October.
During the full-scale war, logging volumes have significantly decreased due to hostilities. At the same time, woodworking enterprises are facing a shortage of raw materials and are forced to idle, while for many rural communities, firewood remains a key resource for heating in winter,” she wrote.
Svyrydenko noted that the extension of restrictions on raw material exports supports Ukrainian production, reduces pressure on the environment, and strengthens the energy security of communities.
CABINET OF MINISTERS, EXPORTS, FOREST, RESTRICTIONS, SCRAP METAL
Ukrzaliznytsia plans to introduce fixed-term contracts for the sale of scrap metal in order to increase buyer interest and ensure predictable revenue for the company itself, according to Yevhen Shramko, head of Ukrzaliznytsia’s Repair and Production Division.
“Currently, lots consist of 300 tons, 400 tons, and 1,000 tons. We will prepare a legal basis for putting up scrap metal that will still be processed. It is not yet physically on site, but we will cut and process it in order to ship it to the buyer,” Shramko said at a meeting with associations and businesses in Kyiv on Thursday.
According to him, this will enable buyers to have predictable scrap metal supplies and work on large contracts.
According to an Interfax-Ukraine correspondent, during the meeting, it was reported that between June and August 2025, 77 auctions were successfully held, and 28,200 tons of scrap metal were sold. Currently, 95,500 tons are ready for sale, including 22,600 tons put up for auction. An additional 131,000 tons are being prepared for sale.
Shramko also said that the single price for loading services had been reduced to UAH 1,143,000 including VAT, but now the company is offering scrap metal at a price that varies depending on the loading point and loading method.
At the same time, the price does not currently depend on the type of scrap metal, but this may change in the future.
As reported, in June this year, Ukrzaliznytsia held its first successful online auctions for the sale of scrap metal after a pause of more than a year and a half.
Ukrainian enterprises increased exports of ferrous metal scrap by 45.5% in January-May this year compared to the same period last year, from 102,366 tons to 155,809 tons.
According to statistics released by the State Customs Service (SRS) on Friday, 28,600 tons were exported in May, 46,321 tons in April, 39,908 tons in March, 25,284 tons in February, and 15,696 tons in January.
In monetary terms, scrap metal exports in January-May increased by 46.4% to $48.127 million from $32.872 million.
Ukrzaliznytsia (UZ) held its first successful online scrap metal auctions after a hiatus of more than a year and a half, according to the Prozorro.Prozori system.
According to a press release on Friday, June 5, Ukrzaliznytsia held online auctions for the sale of scrap metal on the state electronic trading system Prozorro.Prozori. These are the first auctions after a hiatus of more than a year and a half.
It is specified that of the 33 lots of ferrous metal scrap put up for auction, seven were distributed, with participants competing for them. On average, three participants competed for Ukrzaliznytsia’s scrap.
The cost of the lots at the auction started at almost UAH 11.9 million, and according to the results of the auction, the winners will have to pay almost UAH 13 million for them. Ukrzaliznytsia will receive the most money from the sale of 300 tons of scrap from railway wheel axles – over UAH 2.3 million.
As reported by the Interfax-Ukraine agency, on June 5, 2025, an auction was held for the sale of ferrous metal scrap (type 4, lot weight – 142.608 tons) with a starting price of UAH 1 million 29 thousand. The auction was won by NDMZ LLC, and the lot was sold for 1 million 240 thousand 689.60 UAH.
In addition, on June 5, an auction was held for the sale of ferrous metal scrap (type 213, lot weight – 300 tons) with a starting price of UAH 2.80 million excluding VAT. The auction was won by ZAKHID-TEKHNOMEDBUD LLC, and the lot was sold for UAH 2 million 318.1 thousand.
An auction was also held for the sale of ferrous metal scrap (type 3 (axles), lot weight – 200 tons) with a starting price of UAH 1.520 million excluding VAT. The auction was won by ZAKHID-TEKHNOMEDBUD LLC – lot sold for UAH 1 million 790.001 thousand.
On Thursday, an auction was also held for the sale of ferrous metal scrap (type 10, lot weight – 320 tons) with a starting price of UAH 1 million 702.4 thousand excluding VAT. The auction was won by UKRPOUTBRUKHT LLC – the lot was sold for UAH 1 million 920.001 thousand.
Successful bidding also took place for other scrap lots.
In addition, it was reported that the auctions scheduled for May 26 of this year did not take place due to the lack of bids from participants.
Prozorro.Prozori is a joint-stock company, 100% of whose shares are owned by the state represented by the Ministry of Economy. Prozorro.Prozori operates an electronic trading system for online auctions for the sale and lease of public assets, including the property of Ukrzaliznytsia.
In January-April this year, Ukrainian companies increased exports of ferrous metal scrap by 45.5% compared to the same period last year, to 127,209 tons from 87,414 tons.
According to statistics released by the State Customs Service (SCS) on Tuesday, 46,321 thousand tons were exported in April (16.1% more than in March), 39,908 thousand tons in March (an increase of 57.8% compared to February), in February – 25,284 thousand tons of scrap metal (an increase of 61% compared to January), and in January – 15,696 thousand tons.
In monetary terms, scrap metal exports in January-April increased by 39.4% to $39.247 million from $28.155 million.
During the period in question, scrap metal exports were formally carried out mainly to Poland (86.96% of shipments in monetary terms), Greece (6.60%), and Germany (3.09%).
In the first four months of the year, Ukraine imported 33 tons of scrap metal worth $12,000 from Poland (54.55%), the Seychelles (36.36%), and the British Virgin Islands (9.09%).
According to data from the Verkhovna Rada Committee on Economic Development, last year almost 300,000 tons of ferrous metal scrap were exported from Ukraine to the EU with zero customs duties. The lion’s share of these exports transited through Constanta and other ports to Turkey and other countries, avoiding the payment of EUR 180 per tonne in customs duties, which is about UAH 2 billion in lost revenue to the state budget.
Deputy Chairman of the Verkhovna Rada Committee on Economic Development Dmytro Kysilevsky emphasized that if this scrap had gone to Ukrainian factories, it would have created more added value in production, more taxes, and the Armed Forces of Ukraine could have received more funds to finance Ukraine’s defense needs.
Therefore, in view of this, Ukraine must begin consultations with its European partners on their ability to track the end user of raw materials, as well as on other more practical measures to ensure that these scarce raw materials remain and are processed in the country (…) Ukraine must be as firm as possible in defending its national interests,” the parliamentarian concluded.
In addition, it was reported that due to the sharp increase in exports of strategic raw materials from Ukraine, the Ministry of Economy initiated the introduction of a licensing and quota regime for the export of scrap metal with a zero quota. A public discussion of the draft resolution is currently underway. Its implementation is expected to contribute to the smooth operation of Ukraine’s metallurgical and foundry industries, as well as to stabilize the situation with the supply of scrap metal on the domestic market of Ukraine.
In 2024, Ukraine’s scrap metal collection companies increased their exports of ferrous scrap by 60.7% compared to 2023, to 293,190 thousand tons from 182,465 thousand tons. In monetary terms, scrap metal exports for the year increased by 73.2% to $91.311 million from $52.723 million.
