Parliament backs introduction of duty on export of unprocessed stone

The Ukrainian parliament has adopted a decision aimed at changing the strategy for the use of natural resources. The Verkhovna Rada supported a bill establishing an export duty of 300 euros per tonne for unprocessed granite, gabbro, labradorite and basalt. The main goal of this initiative is to stimulate the processing of raw materials in Ukraine, which will allow for the creation of new jobs and an increase in foreign currency inflows to the budget.

Abandoning raw material exports

Ksenia Orinchak, founder of the National Association of the Mining Industry of Ukraine, explained in an interview with the publication "Kommersant Ukrainian" why selling raw materials abroad is disadvantageous for the economy. According to her, this practice deprives domestic enterprises of a significant portion of potential profit. Instead, if the stone is processed in Ukraine, it can be sold at a higher price, which will increase tax revenues and ensure employment for the population.

The expert cites specific figures: after processing, the value of the stone can increase three to four times compared to the price of unprocessed raw material.

Where the added value remains

Today, one of the main buyers of Ukrainian labradorite is China. There, the raw material is sawn, polished and turned into expensive materials for construction and finishing. According to the data cited in the material, Ukrainian stone also reaches Russia through the Chinese market. As a result, the added value from processing, as well as the jobs created and taxes paid, remain abroad, specifically in the aggressor country.

The introduction of the duty is expected to change this situation by encouraging companies to process resources locally rather than exporting them in their primary form.

«У цьому рішенні я бачу ситуацію, вигідну для всіх: виграють і держава, і бізнес» (In this decision, I see a situation that is beneficial for everyone: both the state and business win), Orinchak noted in an interview with the publication "Kommersant Ukrainian".

Future prospects

In Orinchak's view, the future of the Ukrainian mining sector lies not only in extraction but also in building a complete production cycle — from raw material to finished product. Among the promising areas, she highlights the defence, medical, aerospace and energy industries. In particular, in her opinion, Ukrainian titanium could become the basis for the production of complex aviation equipment.

«Наступні 50 років — це лише переробка. Саме там найбільша маржа» (The next 50 years are about processing only. That is where the biggest margin is), the expert emphasised.

At the same time, the development of processing capacities requires investment and access to financial resources. As one of the solutions, Orinchak proposes cooperation between companies and the use of toll raw materials, where the owner of the resource agrees with another enterprise on its processing.

Currently, the law on the introduction of the duty is awaiting the president's signature. Thus, the new export rules have not yet come into force.