Poland is seeking urgent EU intervention after Ukraine imposed a sudden ban on exports of steel scrap to the bloc, Business Insider Polska reported Wednesday.
"A shortage of scrap may lead to higher production costs, reduced competitiveness and a real risk of production cuts and job losses," Poland's Ministry of Development and Technology told the outlet.
In late December, Kyiv introduced zero export quotas on ferrous scrap, effectively blocking shipments of a key raw material for steel production as of Jan. 1, 2026. Ukrainian officials said the move was intended to shore up the country's domestic steel sector amid wartime economic pressures.
Poland is Ukraine's largest EU customer for steel scrap. According to the Polish ministry, around half of the country's steel production relies on electric arc furnaces, which depend heavily on scrap rather than iron ore.
Polish industry representatives say local mills now face rising input costs while Ukrainian producers-now able to retain scrap domestically-stand to gain a cost advantage, potentially distorting competition within the European market.
Warsaw said it sought to avert the dispute. On Dec. 18, 2025, before the restrictions took effect, the ministry formally urged Ukraine to refrain from introducing export limits that would harm Polish businesses.
The appeal, addressed to Ukraine's deputy minister responsible for economic and industrial policy, reportedly went unanswered.
Poland has since turned to Brussels, arguing the issue falls within the EU's common trade policy and risks fragmenting the single market.
"The Ministry of Development and Technology has requested urgent intervention from the European Commission to prevent the introduction of scrap export restrictions affecting EU member states, including Poland," the ministry said.
Officials added the matter would also be raised in upcoming bilateral talks with Ukrainian counterparts.
The dispute comes at a sensitive moment as Ukraine remains heavily dependent on EU financial aid and political backing, while Poland has been one of Kyiv's strongest supporters in Europe-militarily, diplomatically and economically.
At the same time, the row underscores growing tension between wartime industrial policy and EU market rules as Ukraine seeks to protect strategic sectors while negotiating closer economic integration with the bloc.
Similar tensions could reportedly multiply as Ukraine rebuilds its economy under the strain of war, while EU industries face rising costs, competition and pressure to decarbonize.
