Poland Seeks EU Intervention on Scrap Metal Exports
Poland's Ministry of Economic Development and Technology has lodged an official appeal with the European Commission, seeking urgent intervention regarding Ukraine's zero export quota on ferrous scrap. The ban, which effectively halted shipments of the critical raw material from January 1, 2026, has sparked concerns in Warsaw over potential disruptions to its industrial supply chains and the competitiveness of its steel sector.
The Polish government argues that the measure, implemented by Ukraine's Cabinet of Ministers, constitutes a de facto export prohibition that falls under the EU's common commercial policy and risks fragmenting the single market.
Economic Repercussions for Polish Steel Industry
The restrictions are expected to have a substantial impact on Poland's steel industry. The Ministry of Economic Development and Technology warned that a shortage of ferrous scrap could lead to higher production costs, a decline in competitiveness, and a tangible risk of production cuts and job losses.
Poland is identified as Ukraine's largest EU customer for steel scrap, with approximately half of Poland's steel output produced in electric arc furnaces that heavily rely on this raw material. Industry representatives, such as Mirosław Motyka, President of the Polish Chamber of Commerce and Industry, stated that Polish producers will now need to find alternative suppliers, which will inevitably increase raw material and logistics costs.
Ukraine's Justification for the Export Ban
Ukrainian authorities have defended the zero export quota as a necessary measure to bolster its domestic steel industry amidst ongoing wartime economic pressures. According to Dmytro Kysilevsky, deputy chairman of the Verkhovna Rada Committee on Economic Development, retaining scrap metal within the country is profitable, generating significant tax revenues from processed finished products.
The Ukrainian government also highlighted that domestic processing provides jobs, tax revenues, and essential products for defense and reconstruction efforts. Furthermore, the measure aims to prevent the circumvention of export duties and aligns with environmental requirements, particularly in anticipation of the EU's CBAM carbon duty set to be introduced from 2026, as scrap metal is crucial for smelting steel with lower CO2 emissions.
Strained Relations Amidst Allied Support
The dispute emerges at a sensitive time, as Poland has been one of Ukraine's staunchest allies, providing significant political, financial, and military support following Russia's full-scale invasion. However, trade tensions, including those over agricultural products and transit transportation, have increasingly strained relations between the two nations.
Prior to the ban's implementation, Poland's Ministry of Development and Technology had formally requested Ukraine to reconsider the restrictions in December 2025, but the appeal reportedly went unanswered. This lack of response prompted Warsaw to escalate the issue to the European Commission, emphasizing the need for urgent intervention to prevent adverse effects on EU member states.
5 Comments
Africa
Ukraine is at war; they need to prioritize their own economy and defense. Poland should understand.
Donatello
It's a tough situation where both countries have legitimate interests. Ukraine needs to rebuild, but Poland's industrial stability is also crucial for European economic resilience. The EU's role here is to mediate, not just enforce.
Leonardo
Ukraine is trying to rebuild and create jobs. This is a sovereign decision, not Poland's business.
Donatello
Poland is being selfish. Ukraine's survival is far more important than cheap scrap metal.
Michelangelo
On one hand, Ukraine is fighting for its existence and needs to maximize internal resources for recovery and defense. On the other hand, cutting off a key raw material from an ally like Poland without consultation seems counterproductive to long-term trust and cooperation. Better communication was needed.