Ukraine has significant potential for developing critical materials extraction, but its realization requires long-term investments and transparent market conditions. This was discussed at the conference "Strategic Resources of Ukraine: Scenarios for the Development of the Subsoil Use Industry" held on January 23, 2025, in Kyiv.
The event was organized by the think tank “We Build Ukraine” together with the National Association of Extractive Industries of Ukraine. The event brought together representatives of the government, business, foreign and Ukrainian investors, and representatives of diplomatic missions to deepen a practical dialogue on the future of Ukrainian subsoil.
According to Oleksandr Kubrakov, co-founder of We Build Ukraine, Ukraine has large reserves of uranium, titanium, lithium, graphite and beryllium, a favorable geographical location, developed logistics infrastructure and significant professional resources, but due to the closed nature of the industry, global competition and lack of effective regulation and support, the subsoil use sector has not yet been able to realize its potential.
"What is needed now is to update Ukrainian standards for reporting mineral reserves and harmonize them with internationally recognized ones, open the market for healthy competition through tenders and auctions, simplify regulation in terms of obtaining land plots for subsoil use, create a single route for Ukrainian and international investors, launch fiscal and credit incentives, support the development of R&D centers and invest in specialized education and science," commented Alexander Kubrakov.
Despite the full-scale war, the subsoil use industry remains important for the country and has the potential to compete in global markets for critical materials. Laszlo Juhasz, Managing Director of Boston Consulting Group in Central and Eastern Europe, noted that stable regulation, investment, transparency in licensing, availability of geological data, and established interaction with business are important for the development of the sector. The BCG representative also noted that subsoil use is one of the 8 priority sectors for Ukraine's economic growth.
According to Olena Kramarenko, First Deputy Minister of Environmental Protection and Natural Resources of Ukraine, at the end of last year, a state program for the development of the raw materials base was developed and the government is now working on a methodology for identifying and listing critical and strategic minerals.
In particular, the Conference raised the issues of updating the regulatory framework, working with communities and the amount of rent to local budgets, poor or outdated data on possible mineral reserves in certain deposits.
Alexander Kubrakov emphasized that our common task is not only to extract raw materials but also to create added value: infrastructure development, localization of processing and production of final products, such as components for electric cars or titanium products for medical applications. This will turn the extractive industry into a driver of economic growth and help it integrate into these global processes.