The Ukrainian steel association (Ukrmetallurgprom) has lauded the government’s recent decision to implement a zero export quota for ferrous metal scrap in 2026. This measure, established under Resolution 1795, aims to address a critical domestic shortage and safeguard the raw material security of the nation’s metallurgical industry.

The association said that the surge in scrap exports has previously circumvented Ukraine's €180 per metric ton export tax by using EU countries as transit points for re-export to Turkey and India. This practice has not only drained the national budget but also funneled strategic materials to foreign competitors. According to association estimates, processing one ton of scrap domestically generates up to 15,000 UAH in tax revenue, compared to a mere 100 UAH from direct export.

Beyond fiscal benefits, scrap steel is now a vital strategic asset for decarbonization. With the EU's Carbon Border Adjustment Mechanism (CBAM) fully active as of January 1, 2026, increasing scrap utilization is essential for reducing carbon intensity and ensuring Ukrainian steel remains competitive under strict EU climate mandates. By keeping scrap domestic, Ukraine aims to bolster its industrial resilience while navigating the complexities of a low-carbon transition.