How a Ukrainian Government Ban on Scrap Metal Exports is Impacting Lives.

The Story of Olga and Ihor's Family

According to TSN.ua: Olga and Ihor, displaced from Kherson and Donbas, are now struggling to survive in Kyiv. Their hardship is a direct result of a government decision to ban scrap metal exports. This policy has created a surplus of raw materials within Ukraine, leading to significant economic losses. The Cabinet of Ministers set a zero export quota for scrap metal, effective January 1, 2026, with severe consequences for businesses and workers in the sector.

Ihor, from Kherson, and Olga, from Donbas, live in a trailer on an industrial site in Kyiv. Ukraine collects approximately 200,000 tons of scrap metal each month, but domestic plants consume a maximum of 140,000 tons. Consequently, businesses involved in collecting and selling scrap are facing severe difficulties.

“We have 70 tons of scrap on our site. We aren't moving it because we bought it last year at the old price. Selling it now would mean operating at a loss,” says Maksym, an entrepreneur.

The economic toll is substantial. In January 2026 alone, lost foreign currency revenue reached €10 million. The potential income from scrap sales to the EU, now forfeited, is estimated at $150 million. Furthermore, the industry is expected to shed 4,000 jobs by this summer.

Notably, Ukrzaliznytsia (Ukrainian Railways) put 12,000 tons of scrap up for sale, but no auctions took place. According to Volodymyr Bubley, the government's decision to impose a zero quota was made 'not based on market balance, but at the request of one party.' This situation threatens not only businesses but the livelihoods of families dependent on this industry.

• The challenges faced by entrepreneurs confirm that 'we are not interested in accepting metal. The price is too low; we've already said we aren't buying.'

Thus, Olga and Ihor's family, like many others, continues to live in a state of economic instability, witnessing the real-world impact of government decisions that profoundly affect their lives.

Broader Industry Economic Issues

The export ban and zero quota highlight deep economic problems facing not just individual families but an entire industry. Amid a growing raw material surplus and falling scrap metal prices, many entrepreneurs are being forced to close their businesses, negatively impacting employment and the well-being of thousands.

Analysis of the situation shows that decisions made without considering the interests of all market participants can lead to serious socio-economic consequences. The scrap metal industry, a significant source of foreign currency and employment, is now in a precarious state due to this policy.