Thursday, December 21 2023 13:02

ArmInfo. Armenia will extend the ban on scrap metal exports for six months, which expires on January 28, 2024. A resolution extending the ban until July 28, January 2024 was adopted at a meeting of the government of the republic on December 21.

As stated in the explanation to the document, by Decree of the Government of the Republic of Armenia dated June 22, 2023 N 994-N "On the application of a temporary ban on the export of a number of goods from the Republic of Armenia" a temporary ban (for a period of 6 months) was applied to the ban on the export of scrap and non-ferrous metal waste This was done in order to enable local industrial enterprises to develop their own production using scrap and waste non-ferrous metals and alloys.

It is noted that scrap and metal waste are strategically important raw materials for Armenia, given the fact that the country has no natural reserves of ferrous metals. "As for working with metal imported by industrial enterprises in the absence of local scrap and waste, in this case the cost of the products of these companies increases several times, which makes the latter's products uncompetitive," the document says.

As noted by the Ministry of Economy, after the ban came into force (from 2020), local production volumes increased significantly. In particular, according to the Statistics Committee, in 2021 the production volume of steel rolling rolls amounted to more than 115.2 thousand tons, an increase of 8.4 times (compared to 2020), and in 2022 - more than 119.6 thousand tons , which is 3.9% more than in 2021, and production volumes of steel pipes, hollow frames and fittings for them in the first half of 2023 increased by approximately 56%, amounting to 52.2 thousand tons.

As a result of government measures taken in the metallurgical industry (including foreign ones), investments were made in 2022-2023: According to our forecasts, the total investment in the above projects will be $100 million, as a result of which 550-750 new jobs will be created, there will be an increase in the use of local scrap ferrous and non-ferrous metals by 65-70%, bringing the annual volume of scrap consumption to 250 thousand tons," noted the authors of the bill.

The ban is extended for 6 months, since according to the agreement on the Eurasian Economic Union, restrictions by one of the union countries on the export or import of goods cannot be established for a longer period. The decision will come into force on January 29, 2024 and will be valid until June 28.