Economy

EBA urges Ukraine to keep scrap export ban in 2027

EBA urges Ukraine to keep scrap export ban in 2027

The European Business Association (EBA) urged the government to keep the zero quota on ferrous scrap exports, which effectively bans scrap exports in 2027, or, if it is scrapped, to set an export duty of EUR 180 per tonne for all destinations, taking into account Ukraine's international obligations, the association said in a statement.

"Domestic processing of scrap metal in Ukraine allows value added to be created, jobs and tax revenue to be supported, and steel and finished metal products to be supplied with raw material. Using scrap also helps reduce energy costs and CO₂ emissions in steelmaking, which takes on added importance with the EU's application of CBAM," it said.

EBA member companies appealed to the Cabinet of Ministers and the Economy Ministry, it said.

Recently, after most Ukrainian steelworks stopped because of massive Russian attacks, scrap collection companies called on the government to review the restrictions on scrap exports. Scrap collectors had earlier advocated abolishing the de facto export ban and introducing quotas of 200,000 tonnes a year for supplies to EU countries.

The Cabinet of Ministers set a zero quota on scrap exports effective January 1, 2026, to ensure that Ukrainian enterprises have this raw material.

Ferrous scrap exports from Ukraine grew 53% in 2025 from 2024 to 448,680 tonnes, the EBA said. It said easing the current restrictions could lead to higher exports and a raw material shortage for Ukrainian producers.

Ukraine produced 4.3 million tonnes of steel in January-August 2026, compared with 7.41 million tonnes in 2025, UAVtormet said. Steelworks received 925,400 tonnes of scrap, compared with 1.56 million tonnes in 2025, and scrap procurement totaled 971,700 tonnes, compared with 2.11 million tonnes, it said. Preliminary forecasts call for steel production of 6.4-6.5 million tonnes in 2026, scrap supplies to steelworks of 1.2-1.25 million tonnes and scrap procurement of 1.22-1.25 million tonnes, it said.

Ukrainian enterprises cut ferrous scrap exports by 95.1% year-on-year in January-August to 13,860 tonnes from 283,060 tonnes, and to $3.93 million from $85.4 million in monetary terms. January exports of 9,310 tonnes, made because of the completion of last year's contracts, compared with 68,520 tonnes in December 2025. There were no exports in February-May, 4,080 tonnes were sold abroad in June, 315 tonnes in July and 157 tonnes in August.

The Cabinet of Ministers amended Annex 1 to its Resolution No. 1795 of December 31, 2025, by Resolution No. 563 of April 29, 2026, allowing scrap exports under licenses issued by the Economy Ministry to foreign trade entities that won electronic auctions for the sale of such goods held in December 2025. The auctions were held under the Procedure for the Alienation and Leasing of Property of Business Entities in which the state or a legal entity wholly owned by the state holds more than 50% of the charter capital.

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