Several scrap metal exporters in Ukraine are taking legal action to overturn government-imposed restrictions on the export of strategic raw materials. These exporters, led by the company “Zakhidvtorlom,” argue that the zero export quotas are detrimental to their business.
Dmytro Kysylevskyi, deputy head of the Ukrainian Parliament’s Committee on Economic Development, revealed that these exporters have approached the Kyiv District Administrative Court multiple times in an effort to block the quotas. He expressed concerns over potential manipulation of the judicial system, noting that the exporters have withdrawn previous claims after judges were appointed.
“Experienced lawyers and anti-corruption advocates recognize this as a sign of searching for a ‘favorable’ judge,” Kysylevskyi stated.
The zero quotas were implemented by the government as a measure to protect national security, as Kysylevskyi emphasized the importance of ensuring that the metallurgical industry has access to scrap metal for economic stability.
Additionally, he pointed to the exporters’ tendency to exploit loopholes in customs regulations, particularly concerning the EUR.1 certificate, which allows for duty-free shipments outside the EU. Kysylevskyi highlighted that these schemes cost the state approximately 3.5 billion hryvnias last year.
“These schemes for evading customs duties have led to significant losses for the state, and those profiting from them are fighting to maintain their operations,” he asserted.
Kysylevskyi also raised alarms about a potential alliance between Ukrainian shadow operators and pro-Russian forces abroad. He noted that representatives from the Polish party “Confederation,” which has been labeled toxic even within Poland, have come out in support of unrestricted raw material exports.
The deputy remarked that these politicians previously organized protests involving the dumping of Ukrainian grain at the border, suggesting a serious threat posed by this new coalition of Ukrainian shadow businesses and Polish political agents.
“When illicit businesses exploit customs loopholes, it appears to be an internal issue. The government’s decision to impose zero export quotas was necessary to close these loopholes. However, the involvement of Russian political agents complicates the situation significantly,” Kysylevskyi noted.
He concluded by stressing that preventing the illicit scrap metal trade from gaining ground is now a matter of national security. Kysylevskyi called for a departure from the shadowy business practices that flourished during former President Yanukovych’s tenure, asserting that the economy must move away from a reliance on raw material exports.
Ukrainian scrap metal exporters are challenging government restrictions on exports, citing economic impacts. Officials warn of potential manipulation of the judicial system and the involvement of foreign political agents in this issue.