Ukraine's Verkhovna Rada has increased scrap ferrous metal exports duty from EUR 10 per tonne to EUR 30 per tonne for one year and annulled the registration of imports contracts.
248 lawmakers approved the proposal of the Ukrainian president who blocked the previous version of the bill on the three-year increase of the duty.
"This is a compromise that creates the best possible conditions today [for metal companies]," Deputy Economic Development and Trade Minister Maksym Nefyodov said.
He said that the previous version of the bill (No. 3868) passed on April 21 and vetoed by the president violated Ukraine's liabilities to the World Trade Organization (WTO) and the EU. It also threatened with antidumping investigations, while the revised bill meets all rights of the state to react to threats to national security. Nefyodov said that the market faces a shortage of scrap metal, especially in the past two years due to the annexation of Crimea and war in eastern Ukraine.
Head of the parliamentary profile committee Viktor Halasiuk said that the president's proposals to revoke quotas are not in the interests of Ukrainian industry.
"However, it is better to have something than nothing," he said, adding that profile associations confirmed the same position at consultations.
Currently, Ukrainian metal companies face an acute shortage of scrap metal. The scrap metal shortage on the domestic market in 2015 was 855,000 tonnes or 22% of the need (3.92 million tonnes).