Ukraine Targets 39 Inactive Mining Licenses for Potential Revocation

Ukraine's Crackdown on Resource Extraction

According to Кабмін: The Ukrainian government is intensifying oversight of its mining and resource extraction sector, with 39 so-called 'dormant' licenses now under review for potential cancellation. This move is part of a broader effort to reform the country's critical minerals industry and attract responsible investment. The Ministry of Economy and the State Service of Geology and Subsoil of Ukraine have conducted an audit of active extraction licenses, revealing that:

• 29 licenses for strategic minerals have either not been acted upon or are in violation of their approved work programs;
• 10 licenses for oil and gas resources are also failing to meet the conditions stipulated in their programs.

Half of these licenses were issued more than a decade ago.

Sanctions and Government Initiatives

As part of this initiative, the Ukrainian government is aligning its sanctions policy with that of the United Kingdom. This includes pursuing additional restrictions against businessman Dmytro Firtash. Furthermore, a legal basis has been established to revoke three special permits in the Zhytomyr and Dnipropetrovsk regions. Sanctions have also been applied to LLC 'Tiberius Plus,' a company linked to the Malyshevskoye deposit.

Prime Minister of Ukraine Yuliia Svyrydenko emphasized that the country is moving toward building a modern ecosystem for the extraction, processing, and production of value-added goods from critical minerals.

"We have something to offer partner countries and must manage our subsoil resources effectively," she noted.

Svyrydenko also stated that strategic assets will be transferred to new investors through transparent auctions, a process designed to simplify attracting investment into the sector.

This initiative signals the Ukrainian government's intent not only to improve oversight of natural resource use but also to ensure a more transparent and effective mechanism for attracting investment into the extractive industry. Strengthening license control and sanctions policy will help boost Ukraine's investment appeal, a crucial step for the country's economic development amid current challenges. Attracting new investors through transparent auctions could also catalyze the modernization of the industry and enhance its competitiveness on the international market.