The Verkhovna Rada voted to increase the export duty on ferrous metal scrap to 180 euros /ton from the existing duty 58 euros/ton, effective till September 2026.
The amendment aims at reducing the exports volume of metal scrap and overcoming its shortage in the domestic market (in 2021 exports increased by almost 15.5 times compared to 2020), increasing revenues to the state budget and assisting in decarbonization of the steel production industry. To become effective the amendment is pending the signature of the President of Ukraine and official publication, that are expected shortly.
Earlier this year the Ministry of economy suggested increasing the export duty on scrap to 200 euros/ton, but this initiative was not supported by the Cabinet of Ministers. Before that, the Ministry of economy has published the draft regulation suggesting a ban on exports of ferrous metal scrap till December 2022. Draft regulation is currently under the public discussion. For more details, please see our earlier press-release on this matter.
For more information, please contact Counsel Nadiia Dmytrenko and Managing Partner Dmytro Vidsota.
