The export of scrap from Ukraine must be banned, Ukraine loses money every day, – the expert The expert stressed that the EU is going to ban the export of scrap in order to provide its industry with raw materials, focused on reducing emissions /Photo: freepik.com
Ukraine should immediately reduce scrap metal exports in order to preserve its metallurgy and fulfill its commitments to reduce emissions – whether it be locked for exports or increased duties.
< p>This is reported by RBC-Ukraine with reference to the statement of Igor Guzhva, head of the Analytical Center for the Development of Market Economy of SMD Ukraine.
“Of course, it is preferable to introduce a complete ban on exports. And when we ban the export of scrap metal, our metallurgical enterprises will receive hope, confidence in the financial model of their enterprise. Because it turns out that enterprises sign a long-term contract with someone for the supply of finished products and then it cannot be fulfilled. Why? Because raw materials are leaving, “Guzhva explained.
He recalled that now strategically important raw materials for metallurgy are exported from the country in huge volumes, and the established export duty is no longer fulfilling its function. Therefore, the only way to stop the export of scrap is to either prohibit exports or significantly increase the export duty. But the duty should be raised immediately, as Ukraine has already lost a lot of time.
“The peak load on the export of scrap metal is traditionally October-November-December. And if the duty were introduced now, we would not have stopped export completely. But a good fiscal stimulus would have worked. That is, even if scrap metal was exported, at least the budget would win – after all, the revenue from the duty would have increased 4 times, “the expert explained.
If the protective measures are not introduced, the domestic metallurgical plants will have to be stopped. But scrap processing in Ukraine will give much more for the economy and budget than its export.
“Now, on the export duty, we receive UAH 1.9 thousand from the export of scrap metal. And when processing steel, we get UAH 10.5 thousand – only in the form of taxes from metallurgical enterprises. Therefore, our strategy and our tactics is to recycle scrap metal here”, – Guzhva emphasized.
In his opinion, Ukraine should follow the example of the EU, which is going to impose a ban on the export of scrap in the near future in order to provide its industry with raw materials, focused on reducing emissions.
” Ukraine has undertaken very ambitious decarbonization commitments. We must in a certain way reduce our emissions by 2030, and from 2050 or 2060 we must be a carbon-neutral economy in general. This is normal, the whole world is moving towards this, and we are going there, “he summed up Guzhva.
Earlier, Andrey Tarasenko, chief analyst at CMK Center, said that Ukraine should impose a ban on the export of scrap metal in order to support domestic metallurgists and ensure the implementation of the strategic plan. to reduce emissions.