In four months, more than in the entire previous year: how much did Ukrzaliznytsia earn from scrap metal sales?
28 April 16:02
In the first four months of 2026, Ukrzaliznytsia generated more revenue from the sale of ferrous metal scrap than it did in all of 2025.
This was reported by Dmytro Kysilevsky, deputy chairman of the Verkhovna Rada Committee on Economic Development, according to "Komersant Ukrainian".
“Specifically, as of April 28, Ukrzaliznytsia had sold 69,700 tons of ferrous metal scrap for a total of 439.9 million hryvnias. This exceeds the annual figures for 2025 by 16.7% and 10%, respectively,” he noted,” the MP wrote.
According to him, 100% of the scrap sold was purchased for domestic processing at metallurgical and foundry enterprises. Ukrzaliznytsia is directing the proceeds toward rolling stock upgrades and improving its financial condition.
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What influenced the profits
Kysilevsky emphasized that the growth in scrap sales by Ukrzaliznytsia was driven by two factors.
“First, the government introduced a zero export quota on scrap metal. This eliminated any uncertainty regarding state policy in the market for this raw material and put an end to speculation by traders,” he noted.
Last year, when scrap metal was being exported on a massive scale, Ukrzaliznytsia failed to meet its sales target and did not receive the planned funds, the deputy emphasized.
Second, according to him, Ukrzaliznytsia’s management began to bring order to the auctions. They became more transparent and understandable.
“The policy of shipping scrap by truck—which was absurd for the railway—has also been discontinued; UZ has returned to shipping by railcar. This is not only understandable to buyers but also beneficial for UZ, since freight rates constitute the railway’s revenue,” Kysilevsky noted.
The sale of scrap metal is an important source of revenue for improving UZ’s financial condition. At the same time, it will kickstart production chains for steelmakers, which in turn will generate additional freight traffic, the MP explained.
As a reminder, in January, the Ukrainian metallurgical industry and the country’s main carrier, Ukrzaliznytsia, announced that they were launching a new phase of cooperation. The parties agreed on changes regarding the sale of scrap metal that will improve the results of the railway operator’s auctions.
The main change concerned logistics conditions. Now, 80% of the scrap will be sold with delivery directly to the buyer (FCA), and only 20% will be left for self-pickup.
Decommissioned railcars: from a burden to a profit
Another agreement concerns the sale of entire decommissioned railcars. The railway has thousands of them, but lacks the capacity to cut them up.
“We have many railcars that we cannot cut up, but we want to sell on the market,” explained Alexander Pertsovsky, Chairman of the Board, at the time.
One of the business’s main requirements was accurate weight measurement to avoid paying for coal residue or debris that had accumulated over decades of operation.
In 2025, Ukrzaliznytsia was able to ship only one-third of the volume sold, while over 91,700 tons of ready-to-sell resources had accumulated at its sites.
As a reminder, on December 31, 2025, the government approved a decision to extend the licensing regime with zero quotas on exports of unprocessed timber, firewood, as well as ferrous metal and copper scrap, which will remain in effect throughout 2026. This will allow Ukraine to retain strategic raw materials and direct them toward domestic processing needs.
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