The government has extended the ban on raw material exports: focusing on processing and defense
1 January 15:27
The Cabinet of Ministers of Ukraine has decided to extend restrictions on the export of unprocessed timber, firewood, and scrap ferrous metals and copper until the end of 2026.
This was announced by Prime Minister Yulia Svyrydenko, according to "Komersant Ukrainian".
Formally, this involves a licensing regime with zero quotas, which effectively means a ban on exporting these raw materials abroad.
According to Svyrydenko, the decision aims to preserve strategic raw materials in Ukraine and direct them toward domestic processing.
Particular emphasis is placed on scrap metal. The Prime Minister stressed that this is a critically important raw material for the metallurgy and foundry industries, which also serve defense needs.
Despite the existing export duty, scrap metal exports have been increasing—often transiting to third countries without creating added value for Ukraine.
According to the government’s assessment, domestic processing means jobs, tax revenue, products for reconstruction, and reduced carbon emissions.
Restrictions on timber exports were an extension of decisions adopted in late October.
Due to the war, logging volumes have declined, and wood processing enterprises are facing a shortage of raw materials.
In addition, for many communities, especially in frontline regions, firewood remains a key resource for heating.
The government believes that extending the restrictions:
- supports Ukrainian production,
- reduces pressure on the environment,
- strengthens communities’ energy security.
What this means for the market
The decision confirms the state’s commitment to protectionism in strategic sectors—metallurgy, wood processing, and energy—amid the war and post-war reconstruction.
At the same time, it may exacerbate tensions between the interests of exporters and domestic processors, especially against the backdrop of upcoming reforms and Ukraine’s commitments to the EU.
In April 2025, Ukrzaliznytsia announced its readiness to put the first batches of scrap metal up for sale; auctions on the Prozorro.Sales platform were scheduled for May.
