Granite export duty during the war: €300 per tonne and a difficult transition to processing

Ukraine is introducing an export duty on certain types of natural stone: €0.30 per kilogram of net weight, equivalent to €300 per tonne. The changes are provided for by Law No. 4903-IX of 9 June 2026, published on 22 October. For the granite industry, the decision changes the economics of export shipments and intensifies the debate about the conditions needed to develop Ukrainian stone processing during the war. ^{[1], [2], [3]}

The law generally entered into force on 23 October, but a separate timetable applies to the duty rates: 45 days from the day following publication. A calendar calculation gives 7 December 2026. The rates are provided for a ten-year period; the end of martial law is not, in itself, specified as a ground for terminating them. ^{[2], [3]}

The provision covers three commodity codes:

Simply sawing a block into slabs therefore does not guarantee that the product falls outside the duty. The determining factors are the characteristics of the goods and their customs classification. It would also be incorrect to extend the new rate to all natural-stone products. ^[3]

An illustrative calculation shows the scale of the burden: applying the full rate to a shipment with a net weight of 24 tonnes would mean €7,200 in duty. This is an additional amount on top of production and transport costs. Because the rate is based on weight, its relationship to the value of the product varies: at an assumed price of €300 per tonne, the duty would equal the price of the goods; at €1,000 per tonne, it would represent 30%. These examples explain how the rate works; they are not estimates of market prices or any particular company’s contracts.

Supporters link the decision to the development of domestic processing. The National Association of Extractive Industry of Ukraine justifies its support for the duty by the potential to increase finished-product output, employment and tax revenue. This is an intended outcome of the policy, dependent on investment and the actual operation of businesses. ^[4]

In the industry debate, producers and exporters warn that the additional burden could arrive before processing opportunities are available. At a round table hosted by Ukrinform on 19 June, business representatives highlighted staffing difficulties and the challenges of implementing investment projects during the war. The Association of Producers of Non-metallic Building Materials of Ukraine separately questioned the justification for the rate and its ten-year duration. These are market participants’ positions, rather than established consequences of the new duty. ^{[5], [6]}

The wartime context makes the relationship between the burden and the ability to adapt particularly important. Establishing a stone-processing operation requires equipment, a prepared site, electrical capacity, water supply, staff and orders. There is a period of expenditure between the decision to invest and the first paid delivery of finished products. Throughout that period, a quarry must maintain extraction, repair machinery and pay its workforce. If block exports provide this funding, lower export profitability could also constrain the resources available for modernisation.

Additional processing increases the need for a reliable energy supply. For a business assessing a new line, available power capacity, the ability to operate continuously and the cost of backup power all matter. Wartime risks also require allowance for equipment protection, possible downtime and a longer investment payback period. The economic case for moving into finished products cannot therefore be determined solely by the difference between block and processed-stone prices: processing costs, material losses, financing and sales absorb part of that difference.

Staffing also affects the pace of the transition. A new production line requires operators, machine setters, production technologists and quality-control staff. In the NBU’s survey for the third quarter of 2026, respondents from the extractive industry had the strongest expectations of further reductions in employee numbers. This is an industry-wide sentiment indicator, rather than a forecast for every granite quarry, but it describes the environment in which businesses are being encouraged to expand processing. ^[7]

A separate risk arises in relations with overseas buyers. The ability to increase prices depends on demand for the particular stone, contract terms and the availability of alternatives. If a buyer does not agree to cover the duty, part of the burden may remain with the Ukrainian supplier, or the order may be lost. For a business operating during the war, such a loss would reduce current cash flow just when funding is needed to keep production resilient.

The move from selling blocks to exporting finished products also changes the sales market itself. A raw-material buyer has its own processing operation and corresponding production needs. Selling cladding, stairs or other finished products requires different specifications, quality control, packaging, commercial relationships and customer work. Having a deposit and being able to buy a machine do not, by themselves, ensure orders for a new production operation.

Possible effects also extend to the domestic market. If some export blocks remain in Ukraine, processors could gain a broader choice of raw material and better purchasing terms. However, if their capacity or orders are insufficient, additional supply could put pressure on quarry prices. These are possible scenarios, rather than confirmed outcomes: their scale will depend on demand, available financing and businesses’ ability to increase output.

For the state, assessing the effect also requires accounting for changes in business behaviour. Multiplying the rate by past export volumes gives only an illustrative calculation assuming unchanged shipments. If shipments decline, actual duty revenue will differ. A full assessment must consider employment, payments by operating businesses, foreign-currency earnings and the pace at which new processing capacity is established. During the war, preserving these sources of economic resilience has value in its own right.

International trade commitments remain a further question. In its comments on the draft law, the Main Legal Department of the Verkhovna Rada Secretariat identified an inconsistency between the proposed duty and Article 31(1) of the EU–Ukraine Association Agreement, and recommended removing the provision. The law was adopted with the stone provision included. The department’s comments do not, by themselves, repeal it or establish an exemption for any particular shipment; its practical application to trade with the EU requires separate legal clarity. ^{[3], [8]}

For granite-block producers, including businesses with a profile such as NIVEN’s, the decision matters beyond a single customs payment. It affects potential sales channels, cooperation with processors and investment calculations. The specific effect on a business depends on its products, markets and terms of sale.

Developing Ukrainian stone processing requires alignment between trade restrictions and production capabilities. Access to finance, energy resilience, workforce training and time to establish new markets will determine how far the duty contributes to modernisation. Without sufficient conditions for that transition, revenue from block exports could fall before businesses can offset the loss through sales of more extensively processed products.