Government extends ban on raw materials exports: emphasis on processing and defense
1 January 15:27
The Cabinet of Ministers of Ukraine has decided to extend restrictions on the export of unprocessed wood, fuel wood, and ferrous and copper scrap until the end of 2026.
This was announced by Prime Minister Yulia Svyrydenko, reports "Komersant Ukrainian".
Formally, it is a zero-quota licensing regime, which actually means a ban on the export of these raw materials abroad.
Why is the government doing this?
According to Svyrydenko, the decision aims to keep strategic raw materials in Ukraine and direct them to domestic processing.
A special emphasis is placed on scrap metal. The Prime Minister emphasized that this is a critical raw material for the metallurgy and foundry industries, which also serve the defense sector.
Despite the current export duty, the volume of scrap exports has been growing, often in transit to third countries, without creating added value for Ukraine.
Domestic recycling, according to the government, means jobs, tax revenues, products for reconstruction, and reduced carbon emissions.
A word about timber
Restrictions on timber exports were a continuation of the decisions made in late October.
Due to the war, logging volumes have decreased, and woodworking companies are facing a shortage of raw materials.
In addition, firewood remains a key heating resource for many communities, especially in the frontline regions.
The government believes that continuing the restrictions
- supports Ukrainian production,
- reduces pressure on the environment,
- strengthens the energy security of communities.
What it means for the market
The decision sets out the government’s policy of protectionism in strategic sectors such as metallurgy, woodworking, and energy in the context of war and post-war reconstruction.
At the same time, it may increase the tension between the interests of exporters and domestic processors, especially against the backdrop of future reforms and Ukraine’s commitments to the EU.
In April 2025, Ukrzaliznytsia announced its readiness to put up for sale the first batches of scrap metal, with auctions in the Prozorro.Sale system scheduled for May.
Against this backdrop, the government’s decision looks like an attempt to keep raw materials inside the country and prevent them from leaking abroad during the peak demand period.
