Losses in Ukraine's mining sector reach US$1.7 trillion since start of full-scale invasion

During the three years of Russia's full-scale war against Ukraine, Ukraine's mining sector has lost about US$1.7 trillion.

Source: Svitlana Hrynchuk, Minister of Environmental Protection and Natural Resources of Ukraine, in an interview with Reuters

Details: About half of Ukraine's strategically important material resources are located in the temporarily occupied territories.

Hrynchuk said that a large part of coal deposits, some lithium, manganese and other mineral deposits remain in the temporarily occupied territories.

She expressed hope that a joint recovery fund with the United States would significantly increase the potential of the mining industry.

"Currently, our natural resources sector accounts for 4% of gross domestic product, but the potential is much greater... We sincerely hope that the agreement will draw more attention to this sector and make foreign investment more transparent and attractive," Hrynchuk said.

She stressed that Ukraine is radically reforming its mining sector in an effort to attract billions of dollars in investment under an agreement with the United States on mineral extraction.

The country is focused on improving access to information and data on geological exploration, reducing bureaucracy and finalising lists of critical and strategic minerals that are crucial to the economy.

Background:

• On 1 May, Ukrainian Economy Minister Yuliia Svyrydenko and US Secretary of the Treasury Scott Bessent signed an agreement on minerals.
• On 8 May, the Ukrainian parliament voted to ratify an agreement on the creation of a joint investment fund between Ukraine and the US.
• On 12 May, Zelenskyy signed the ratification of the subsoil agreement with the US.
• Earlier, it was reported that 20,000 deposits had been explored in Ukraine, but only about 3,500 deposits were being developed. New deposits are practically not being explored, and there is an acute problem of "dormant" licences, when no work is being carried out on explored and promising sites.
• The Cabinet of Ministers of Ukraine has expanded the list of minerals of national and local importance. 

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