The government has set zero quotas for scrap exports from Ukraine for 2026

On December 31, the government set zero export quotas for 2026 on the export of ferrous metal scrap (code 7204) and copper scrap (code 7404 00) from Ukraine. This was announced by Dmytro Kysilevsky, deputy chairman of the Verkhovna Rada Committee on Economic Development.

According to the parliamentarian, it is profitable for the state to keep all scrap metal within the country. One ton of scrap metal processed in Ukraine into finished products generates approximately UAH 15,000 in taxes. One ton of exported scrap metal without customs duties does not actually generate taxes (within UAH 100 per ton), since scrap metal collection remains largely a shadow business.

«The export of scrap metal to the EU is de facto a scheme to circumvent customs duties, with losses to the budget amounting to almost UAH 3.5 billion per year, since customs duties to the EU are currently 0, while to other countries they are €180. Scrap metal from Ukraine is mainly re-exported outside the EU. If the 380,000 tons of scrap exported in 2025 were processed in Ukraine, the state would receive UAH 5.7 billion in taxes,» explained Dmytro Kysylevsky.

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, as scrap metal is a scarce raw material for smelting steel with lower CO₂ emissions.

The MP stressed that one of the tasks of the Verkhovna Rada for 2026 is to enshrine the decision to restrict the export of strategic raw materials in law. The restrictions should remain in place as long as external circumstances and recovery needs require.

As reported by GMK Center, back in April 2025, the Ministry of Economy of Ukraine was considering the possibility of introducing a zero quota on scrap metal exports. The reason for the need to introduce such a restrictive measure was that this strategic raw material is supposedly exported from Ukraine to the European Union, but in fact it is re-exported to third countries, in particular Turkey, which have a competitive advantage and provide various forms of preferences to their producers and protection of the domestic market.

It should be recalled that the volume of ferrous metal scrap collection in Ukraine in 2024 increased by 37% y/y and amounted to over 1.7 million tons. Scrap supplies to steel enterprises amounted to 1.34 million tons (an increase of 30% y/y). In the first 11 months of 2025, collection increased by 17.3% y/y  – to 1.88 million tons, and deliveries to consumers increased by 14.2% y/y – to 1.4 million tons.