Problems of legislative regulation of circulation of recycled materials discussed during roundtable at Verkhovna Rada Committee for Economic Policy
10 April 2015, 10:46
Participants of the roundtable expressed opinion as to trends of improvement of the legislative fundamental for exportation of scrap metal from Ukraine, ways to protect Ukrainian market of metallurgy and jobs created in this field, trends of retention and development of raw material base of the state and field of scrap collection, which ensures delivery of foreign currency profits from exportation of scrap metal to the state budget.
According to member of the Committee Hennadii Chekita, who initiated the roundtable, today Ukraine should as soon as possible elaborate a legislative mechanism to stimulate the development of national production taking in account interests of all market participants.
Participants of the roundtable paid attention to the fact that the necessity for legislative regulation of problems of metallurgical industry and associated sector of scrap collection is a result of discussion of the Verkhovna Rada-registered draft law No. 2012 on introduction of amendments into Article 9 of the Law of Ukraine “On scrap metal” as to termination of contracts on exportation, which envisions cancellation of quotas for exports of scrap metal set by the Economic Development and Trade Ministry.
In words of representatives of metallurgical sector, Ukraine suffers lack of scrap ferrous metal therefore, the abolition of its exportation may stop the production and affect mining, metallurgical and associating sectors employing 500,000 people, which are over 10% of the country’s GDP and about 25% of the total Ukrainian export.
Scrap metal collectors also pointed to corruption in current system of validation of quotas for exportation of scrap metal. They also noted that the Economic Development and Trade Ministry has not approved the balance as to provision of scrap metal to Ukrainian metallurgical enterprises for 2015.
Chekita also noted that to retain the resource base of Ukraine it is impossible to implicitly abolish the quotas for exportation of scrap ferrous metals. “They should be retained, and make the process as transparent and efficient as possible. To do that we have to have rational legislative basis that would create balance of interests of branches, where the Ministry of Economy will occupy the consolidating position,” Chekita noted.
He also expressed confidence that the position of the core Verkhovna Rada Committee will first of all base on the protection of national interests of Ukraine and effective European practice in regulation of scrap metal market. “Last year, Ukraine validated the quotas for exportation of scrap metal at 1,250 tons. At present, it is planned to set the three-month quota at about 400 tons,” the parliamentarian specified.
In compliance with conclusions of the roundtable, it was decided to establish a workgroup of people's deputies, representatives of central executive bodies, Federation of Metallurgists of Ukraine, Ukrainian Scrap Metal Export Association, enterprises engaged in respective sectors to analyze national legislation in the field of handling of recycled material and to elaborate proposals as to legislative grounds for formation of target market of ferrous metals and retention of strong resource base for the development of metallurgical sector of Ukraine.
Participant of the roundtable were Verkhovna Rada deputies, Deputy Economy Minister Maksym Nefiodov, experts, representatives of the Ukrainian Steel Workers Federation, Ukrainian Scrap Metal Exporters Association, and enterprises engaged in respective sectors.
