Latest news with #Hrynchuk
Yahoo
2 days ago
- Business
- Yahoo
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. Support Ukrainska Pravda on Patreon!
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Business Standard
2 days ago
- Business
- Business Standard
Ukraine revamps minerals sector, eyes billions in investment from US deal
Ukraine is overhauling its minerals sector, which has been pounded by three years of war, in the hope of unlocking potential and attracting billions of dollars of investment from a minerals deal with the U.S., its ecology minister said. The country has deposits of 22 of 34 minerals deemed as critical by the European Union for industries such as defence, high-tech appliances and green energy, as well as ferro alloy, precious and non-ferrous metals used in construction, and some rare earth elements. However, much of the sector is underdeveloped, weighed down by Soviet-era bureaucracy and lack of investment. After months of fraught negotiations, Kyiv and the United States agreed a minerals deal in April that was heavily promoted by U.S. President Donald Trump. It created a fund, which became active on May 23, that will receive money from new mining licences in Ukraine and invest in minerals projects. Ecology Minister Svitlana Hrynchuk told Reuters in an interview that Ukraine hoped the fund would significantly increase the mineral industry's potential, noting extraction was a capital-intensive and long-term task. "Currently, our natural resources sector's share of gross domestic product is 4%, but the potential is much greater," she said late on Monday, without giving projections. "We really hope the agreement will draw more attention to this sector and make foreign investment more understandable and more attractive." With the conflict still ongoing, about half of the country's mineral wealth and a fifth of its territory are now under Russian occupation. Ukraine has lost most of its coal deposits, as well as some lithium and manganese deposits and other minerals. Hrynchuk estimated that the sector had suffered losses of about 70 trillion hryvnias ($1.7 trillion) due to the occupation of Ukrainian territory and combat action along a more than 1,000 km (621 miles) frontline. Ukraine updated its strategy for its resources sector at the end of last year and was now focusing on improving access to information and data on geological exploration, reducing bureaucracy and finalising the lists of critical and strategic minerals crucial for the economy, she said. The work is also part of Ukraine's push to move closer to the European Union, which Kyiv hopes to join in 2030. UNDERDEVELOPED AND UNEXPLORED Hrynchuk said the government was working with the European Commission and the European Bank for Reconstruction and Development on a multi-year project to digitise up to 80% of Soviet-era geological data. That task is about 40% complete, she said. The government was also working to review an existing 3,000 mining licenses. Hrynchuk estimated that about 10% of them could be dormant. "We are not interested in taking away assets if there is a potential for them to work," she said. "We are interested for those assets which are... valuable for the state and have not been working for 10 years or more, to make appropriate managerial decisions about them. And to launch them back into circulation." The licence review will be done this year and next, she said. Despite wartime challenges, the government continued to auction mining licenses and last year raised 2.4 billion hryvnias from auctioning 120 mining licenses. It hopes to get a similar amount into the state coffers this year and has already awarded 32 licenses, with the majority for building sector materials, including clay, sand, marble, granite, but also amber. Investors, who at present are predominantly domestic, were mostly interested in licenses for oil and gas exploration, as well as minerals such as titanium, graphite and manganese, she said. The U.S. minerals deal was agreed despite a clash between President Volodymyr Zelenskiy and Trump during their meeting in the White House in February. Final documents to enable the joint investment fund to operate were exchanged last week, but projects will take time to materialise, Ukrainian officials said. The minerals deal, which U.S. Treasury Secretary Scott Bessent termed as a full economic partnership, hands the United States preferential access to new Ukrainian minerals accords and will help to fund Ukraine's reconstruction.
Observer
3 days ago
- Business
- Observer
Ukraine eyes billions in investment from US deal
Ukraine is overhauling its minerals sector, which has been pounded by three years of war, in the hope of unlocking potential and attracting billions of dollars of investment from a minerals deal with the US, its ecology minister said. The country has deposits of 22 of 34 minerals deemed as critical by the European Union for industries such as defence, high-tech appliances and green energy, as well as ferro alloy, precious and non-ferrous metals used in construction and some rare earth elements. However, much of the sector is underdeveloped, weighed down by Soviet-era bureaucracy and lack of investment. After months of fraught negotiations, Kyiv and the United States agreed a minerals deal in April that was heavily promoted by US President Donald Trump. It created a fund, which became active on May 23, that will receive money from new mining licences in Ukraine and invest in minerals projects. Ecology Minister Svitlana Hrynchuk said in an interview that Ukraine hoped the fund would significantly increase the mineral industry's potential, noting extraction was a capital-intensive and long-term task. "Currently, our natural resources sector's share of gross domestic product is 4 per cent, but the potential is much greater," she said late on Monday, without giving projections. "We really hope the agreement will draw more attention to this sector and make foreign investment more understandable and more attractive." With the conflict still ongoing, about half of the country's mineral wealth and a fifth of its territory are now under Russian occupation. Ukraine has lost most of its coal deposits, as well as some lithium and manganese deposits and other minerals. Hrynchuk estimated that the sector had suffered losses of about 70 trillion hryvnias ($1.7 trillion) due to the occupation of Ukrainian territory and combat action along a more than 1,000 km frontline. Ukraine updated its strategy for its resources sector at the end of last year and was now focusing on improving access to information and data on geological exploration, reducing bureaucracy and finalising the lists of critical and strategic minerals crucial for the economy, she said. The work is also part of Ukraine's push to move closer to the European Union, which Kyiv hopes to join in 2030. Hrynchuk said the government was working with the European Commission and the European Bank for Reconstruction and Development on a multi-year project to digitise up to 80 per cent of Soviet-era geological data. That task is about 40 per cent complete, she said. The government was also working to review an existing 3,000 mining licenses. Hrynchuk estimated that about 10 per cent of them could be dormant. "We are not interested in taking away assets if there is a potential for them to work," she said. "We are interested for those assets which are... valuable for the state and have not been working for 10 years or more, to make appropriate managerial decisions about them. And to launch them back into circulation." The licence review will be done this year and next, she said. Despite wartime challenges, the government continued to auction mining licenses and last year raised 2.4 billion hryvnias from auctioning 120 mining licenses. It hopes to get a similar amount into the state coffers this year and has already awarded 32 licenses, with the majority for building sector materials, including clay, sand, marble, granite, but also amber. Investors, who at present are predominantly domestic, were mostly interested in licenses for oil and gas exploration, as well as minerals such as titanium, graphite and manganese, she said. The US minerals deal was agreed despite a clash between President Volodymyr Zelenskiy and Trump during their meeting in the White House in February. Final documents to enable the joint investment fund to operate were exchanged last week, but projects will take time to materialise, Ukrainian officials said. The minerals deal, which US Treasury Secretary Scott Bessent termed as a full economic partnership, hands the United States preferential access to new Ukrainian minerals accords and will help to fund Ukraine's reconstruction. Olena Harmash The writer is Ukraine economics and finance correspondent for Reuters
Yahoo
3 days ago
- Business
- Yahoo
Ukraine revamps minerals sector, eyes billions in investment from US deal
By Olena Harmash KYIV (Reuters) -Ukraine is overhauling its minerals sector, which has been pounded by three years of war, in the hope of unlocking potential and attracting billions of dollars of investment from a minerals deal with the U.S., its ecology minister said. The country has deposits of 22 of 34 minerals deemed as critical by the European Union for industries such as defence, high-tech appliances and green energy, as well as ferro alloy, precious and non-ferrous metals used in construction, and some rare earth elements. However, much of the sector is underdeveloped, weighed down by Soviet-era bureaucracy and lack of investment. After months of fraught negotiations, Kyiv and the United States agreed a minerals deal in April that was heavily promoted by U.S. President Donald Trump. It created a fund, which became active on May 23, that will receive money from new mining licences in Ukraine and invest in minerals projects. Ecology Minister Svitlana Hrynchuk told Reuters in an interview that Ukraine hoped the fund would significantly increase the mineral industry's potential, noting extraction was a capital-intensive and long-term task. "Currently, our natural resources sector's share of gross domestic product is 4%, but the potential is much greater," she said late on Monday, without giving projections. "We really hope the agreement will draw more attention to this sector and make foreign investment more understandable and more attractive." With the conflict still ongoing, about half of the country's mineral wealth and a fifth of its territory are now under Russian occupation. Ukraine has lost most of its coal deposits, as well as some lithium and manganese deposits and other minerals. Hrynchuk estimated that the sector had suffered losses of about 70 trillion hryvnias ($1.7 trillion) due to the occupation of Ukrainian territory and combat action along a more than 1,000 km (621 miles) frontline. Ukraine updated its strategy for its resources sector at the end of last year and was now focusing on improving access to information and data on geological exploration, reducing bureaucracy and finalising the lists of critical and strategic minerals crucial for the economy, she said. The work is also part of Ukraine's push to move closer to the European Union, which Kyiv hopes to join in 2030. UNDERDEVELOPED AND UNEXPLORED Hrynchuk said the government was working with the European Commission and the European Bank for Reconstruction and Development on a multi-year project to digitise up to 80% of Soviet-era geological data. That task is about 40% complete, she said. The government was also working to review an existing 3,000 mining licenses. Hrynchuk estimated that about 10% of them could be dormant. "We are not interested in taking away assets if there is a potential for them to work," she said. "We are interested for those assets which are... valuable for the state and have not been working for 10 years or more, to make appropriate managerial decisions about them. And to launch them back into circulation." The licence review will be done this year and next, she said. Despite wartime challenges, the government continued to auction mining licenses and last year raised 2.4 billion hryvnias from auctioning 120 mining licenses. It hopes to get a similar amount into the state coffers this year and has already awarded 32 licenses, with the majority for building sector materials, including clay, sand, marble, granite, but also amber. Investors, who at present are predominantly domestic, were mostly interested in licenses for oil and gas exploration, as well as minerals such as titanium, graphite and manganese, she said. The U.S. minerals deal was agreed despite a clash between President Volodymyr Zelenskiy and Trump during their meeting in the White House in February. Final documents to enable the joint investment fund to operate were exchanged last week, but projects will take time to materialise, Ukrainian officials said. The minerals deal, which U.S. Treasury Secretary Scott Bessent termed as a full economic partnership, hands the United States preferential access to new Ukrainian minerals accords and will help to fund Ukraine's reconstruction. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Ukraine revamps minerals sector, eyes billions in investment from US deal
By Olena Harmash KYIV (Reuters) -Ukraine is overhauling its minerals sector, which has been pounded by three years of war, in the hope of unlocking potential and attracting billions of dollars of investment from a minerals deal with the U.S., its ecology minister said. The country has deposits of 22 of 34 minerals deemed as critical by the European Union for industries such as defence, high-tech appliances and green energy, as well as ferro alloy, precious and non-ferrous metals used in construction, and some rare earth elements. However, much of the sector is underdeveloped, weighed down by Soviet-era bureaucracy and lack of investment. After months of fraught negotiations, Kyiv and the United States agreed a minerals deal in April that was heavily promoted by U.S. President Donald Trump. It created a fund, which became active on May 23, that will receive money from new mining licences in Ukraine and invest in minerals projects. Ecology Minister Svitlana Hrynchuk told Reuters in an interview that Ukraine hoped the fund would significantly increase the mineral industry's potential, noting extraction was a capital-intensive and long-term task. "Currently, our natural resources sector's share of gross domestic product is 4%, but the potential is much greater," she said late on Monday, without giving projections. "We really hope the agreement will draw more attention to this sector and make foreign investment more understandable and more attractive." With the conflict still ongoing, about half of the country's mineral wealth and a fifth of its territory are now under Russian occupation. Ukraine has lost most of its coal deposits, as well as some lithium and manganese deposits and other minerals. Hrynchuk estimated that the sector had suffered losses of about 70 trillion hryvnias ($1.7 trillion) due to the occupation of Ukrainian territory and combat action along a more than 1,000 km (621 miles) frontline. Ukraine updated its strategy for its resources sector at the end of last year and was now focusing on improving access to information and data on geological exploration, reducing bureaucracy and finalising the lists of critical and strategic minerals crucial for the economy, she said. The work is also part of Ukraine's push to move closer to the European Union, which Kyiv hopes to join in 2030. UNDERDEVELOPED AND UNEXPLORED Hrynchuk said the government was working with the European Commission and the European Bank for Reconstruction and Development on a multi-year project to digitise up to 80% of Soviet-era geological data. That task is about 40% complete, she said. The government was also working to review an existing 3,000 mining licenses. Hrynchuk estimated that about 10% of them could be dormant. "We are not interested in taking away assets if there is a potential for them to work," she said. "We are interested for those assets which are... valuable for the state and have not been working for 10 years or more, to make appropriate managerial decisions about them. And to launch them back into circulation." The licence review will be done this year and next, she said. Despite wartime challenges, the government continued to auction mining licenses and last year raised 2.4 billion hryvnias from auctioning 120 mining licenses. It hopes to get a similar amount into the state coffers this year and has already awarded 32 licenses, with the majority for building sector materials, including clay, sand, marble, granite, but also amber. Investors, who at present are predominantly domestic, were mostly interested in licenses for oil and gas exploration, as well as minerals such as titanium, graphite and manganese, she said. The U.S. minerals deal was agreed despite a clash between President Volodymyr Zelenskiy and Trump during their meeting in the White House in February. Final documents to enable the joint investment fund to operate were exchanged last week, but projects will take time to materialise, Ukrainian officials said. The minerals deal, which U.S. Treasury Secretary Scott Bessent termed as a full economic partnership, hands the United States preferential access to new Ukrainian minerals accords and will help to fund Ukraine's reconstruction. Sign in to access your portfolio
