Exporting scrap to Transnistria is unacceptable for Ukraine – Ukrmetprom

The Ukrainian Association of Secondary Metals (UAVtormet) has asked the State Customs Service of Ukraine to officially clarify the customs clearance procedure for scrap (HS 7204) when exporting it to the pro-Russian enclave of Transnistria. This is stated in an official letter from the president of UAVtormet, Volodymyr Bubley, to the acting head of the State Customs Service of Ukraine, Serhiy Zvyagintsev, according to Rail.Insider.

According to the document, the association requests a list of documents required for customs clearance, an explanation of any restrictions or additional requirements, and information on whether export duties apply.

“Given the significant interest of exporting companies in this issue and its direct impact on foreign economic activity, we request an official response as soon as possible. We are working for victory!” Vladimir Bubley noted in the letter.

In turn, the president of Ukrmetprom, Oleksandr Kalenkov, stressed that all attempts by UAVtormet to facilitate and assist scrap exporters in establishing and significantly increasing the supply of raw materials to the pro-Russian enclave of Transnistria should be classified by the competent authorities as treason.

«Currently, the Ukrainian steel industry is in an extremely difficult situation. Perhaps the most pressing issue is the shortage of scrap, without which no enterprise in the industry can operate. Not only are exports of this strategic raw material breaking all records, and the state budget does not receive any profit from this, because Ukraine has a free trade zone with the European Union, the scrap association is trying to lobby and simplify the export of scrap to the pro-Russian enclave of Transnistria, which is not recognized by anyone,» he said.

Kalenkov also noted that after the large-scale invasion, the scrap industry faces many challenges. In particular, there is a shortage of labor, a list of available processing capacities, and accurate forecasting of the scrap industry’s ability to supply scrap to steel enterprises.

“By the way, UAVtormet has not yet provided the Cabinet of Ministers with data on the balance of scrap demand and consumption, which is required by law,” Kalenkov emphasized.

He recalled that in August, when information appeared in the media about the resumption of scrap supplies to Transnistria, UAVtormet issued a statement condemning the very fact of the publication, but at the same time did not express any condemnation of the actions of scrap exporters who had actually started trading with the aggressor.

«At the same time, Ukrmetprom has repeatedly emphasized that supplying scrap to Transnistria is tantamount to trading directly with the aggressor and financing the war against Ukraine. This is absolutely unacceptable, and therefore I hope that the special services will classify all these actions and intentions as treason,» Kalenkov concluded.

According to Olexander Myronenko, Chief Operating Officer of Metinvest Group, the uncontrolled export of ferrous scrap is one of the biggest problems facing the Ukrainian steel industry. While at the beginning of the war, exports amounted to only 4,000 tons per month, they have now grown to 50,000 tons. At the same time, Ukraine loses about $800-900 in foreign exchange earnings with every ton of scrap exported.