---
title: "\"Gray\" Schemes and Deficit Risk: Scrap Metal Export Without Revenues for Ukraine Will Undermine Metallurgy"
description: "Ukrainian metallurgists insist on maintaining a zero scrap export quota until strict duties or transparent auctions are introduced, warning of deficit risks and shadow schemes."
date: 2026-10-12T09:28:00.000Z
lang: en
url: https://xab.info/en/posts/gray-schemes-and-deficit-risk-scrap-metal-export
tags: [metallurgy, scrap-metal, economy, ukraine, exports]
publisher: "XAB.info"
---

# "Gray" Schemes and Deficit Risk: Scrap Metal Export Without Revenues for Ukraine Will Undermine Metallurgy

![Metallurgical plant and scrap metal recycling in Ukraine](https://xab.info/media/2026/10/12/serie-shemi-i-risk-defitsita-eksport-metalloloma/serie-shemi-i-risk-defitsita-eksport-metalloloma-1.webp)

## 🎯 Key Points

- Ukrmetallurgprom demands maintaining a zero quota or imposing 180 euro/t duties on scrap exports.
- Metallurgical plants are forced to increase scrap usage due to pig iron and coal supply issues.
- A significant portion of scrap collection operates in the "shadow" sector, depriving the budget of taxes.
- Unrestricted raw material exports will lead to severe domestic shortages and falling currency earnings.

The Ukrainian metallurgical industry is facing serious challenges associated with the potential resumption of raw material exports abroad. Representatives of the industry association "Ukrmetallurgprom" insist on the need to maintain strict restrictions or introduce prohibitive duties. The situation is complicated by the fact that many key enterprises in the sector were forced to suspend or reduce their activities due to infrastructure damage and energy problems. However, experts emphasize that the domestic raw material market must remain a priority for the state, as the recovery of the entire production chain depends on it.

### Strategic Importance of Raw Materials for Recovery

According to Oleksandr Kalenkov, President of Ukrmetallurgprom, the resumption of operations at large metallurgical plants directly depends on the ability to purchase scrap metal domestically. In conditions of changing technological processes, enterprises such as "Zaporizhstal" and "Kametstal" are forced to work out options to minimize the use of pig iron — in particular, due to the loss of control over the Pokrovsk coal group. In this situation, maximizing the use of scrap metal becomes a critical technological solution to maintain finished product output.

### Environmental Standards and Resource Scarcity

The transition to electrometallurgy is viewed as an inevitable step for Ukrainian industry in the context of compliance with European environmental requirements, including the Carbon Border Adjustment Mechanism (CBAM). Electrometallurgical processes significantly reduce carbon dioxide emissions, but they require constant and guaranteed access to quality raw materials. The resource of scrap metal in Ukraine is limited, and experts warn that premature opening of exports will inevitably lead to domestic scarcity in the medium term.

### Shadow Turnover and Budget Financial Losses

Special attention in the expert community is paid to the shadow component of the scrap procurement market. A significant part of this business operates through schemes involving individual entrepreneurs (IEs), resulting in minimal tax deductions to the state budget. In addition, foreign exchange earnings from such export operations are not always returned to the country. As a result, the state loses billions in revenues that could be used to support the economy.

### Potential Ways to Resolve the Export Issue

Experts see the only economically sound solution for resuming foreign supplies as creating mechanisms where the budget is guaranteed to receive revenues. Two main scenarios are being considered: returning to export duties at 180 euros per ton applied to all destinations, including the European Union, or introducing transparent quotas through the Prozorro electronic auction system. Without implementing these measures, raw material exports will bring zero benefit to the state treasury but will permanently undermine the prospects of domestic metallurgy.

## 🔍 Fact-Check Verification

- ["Серые" схемы и риск дефицита: экспорт металлолома без доходов для Украины подорвет металлургию](https://www.rbc.ua/ukr/news/siri-shemi-ta-rizik-defitsitu-eksport-metalobruhtu-1791797141.html) - Основной источник колонки Александра Каленкова.
- ["Пошлина должна распространяться без исключений." "Укрметаллургпром" назвал условие для ...](https://gordonua.com/section-worldnews/news-myto-maye-poshyryuvatysya-bez-vynyatkiv-ukrmetalurhprom-nazvav-umovu-dlya-eksportu-brukhtu-metaliv-28-09-2026.html) - Подтверждает позицию по пошлинам и условиям экспорта.
- [Кабмин принял экономически обоснованное решение, запретив экспорт металлолома в 2026-м, - Каленков](https://www.unian.net/economics/other/kabmin-prinyal-ekonomicheski-obosnovannoe-reshenie-zapretiv-eksport-metalloloma-v-2026-m-kalenkov-13243917.html) - Подтверждает статус нулевой квоты в текущем периоде.
- ["Укрметаллургпром" назвал нулевую квоту на экспорт лома государственным решением правительства](https://delo.ua/ru/news/ukrmetallurgprom-nazval-nulevuyu-kvotu-na-eksport-loma-gosudarstvennym-reseniem-pravitelstva-457807/) - Отражает позицию правительства и бизнеса.

## ❓ FAQ

### Q: Why are metallurgists opposed to scrap exports?
**A:** Exporting raw materials deprives domestic plants of necessary resource support and creates a threat of internal deficit.

### Q: What solutions does Ukrmetallurgprom propose?
**A:** It is proposed to establish an export duty of 180 euros per ton or introduce quotas via Prozorro auctions to replenish the state budget.