Business news from Ukraine

Business news from Ukraine

Cabinet of Ministers of Ukraine has extended restrictions on export of timber and scrap metal for 12 months

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.

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Ukrzaliznytsia is preparing new model for scrap metal auctions

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.

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Ukraine exported nearly $50 mln worth of scrap metal in January-May

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.

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Ukrzaliznytsia successfully resumed online scrap metal auctions

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.

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Ukraine increased scrap metal exports by 45% in four months

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.

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Ukrzaliznytsia sells 12,000 tons of scrap metal through Prozorro

JSC Ukrzaliznytsia (UZ) has listed 27 of 30 planned scrap metal lots with a total value of UAH 77.12 million on the Prozorro.Prozori system.

The size of the lots offered for sale ranges from 130 to 700 tons, and UZ plans to sell a total of 12,000 tons of scrap metal in thirty lots, the company’s press service reported on Friday.

The auction will take place on May 26. All lots will be sold in three rounds in the English format (by increasing the price).

The scrap metal is located in the Kyiv, Kharkiv, Lviv, Poltava, Odesa, and Chernihiv regions. A single loading cost per railway car has been set for all lots at 1,344.5 UAH/ton (including VAT), UZ reported.

“It is fundamentally important for us that the auction takes place with maximum competition, participation, and results. For our part, we have done the preparatory work, including switching to the updated DSTU, reducing the number of shipping points, etc.,” said Yevgeny Shramko, a member of the UZ board (Repair and Production), as quoted by the company’s press service.

Earlier it was reported that after a nearly two-year hiatus, UZ plans to resume auctions in the Prozorro.Prozori system. The company said it was ready to put up for sale about 160,000 tons of scrap metal for gradual sale in separate lots.

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