AMCU uncovers collusion in peat auction threatening the 'Lviv Sea'
In early June, the Antimonopoly Committee of Ukraine (AMCU) fined two companies a total of UAH 69,100 for collusion during a peat extraction auction near the Gamaliyivske Reservoir, colloquially known as the "Lviv Sea."This was reported by the administrative board of the Southeastern Interregional Territorial Office of the AMCU.
In September 2023, the State Service of Geology and Subsoil of Ukraine conducted an auction and granted a special permit for subsoil use at the Gamaliyivka section of the Lvivske field, covering an area of 403.6 hectares.
The auction was initially won by Zaporizhzhia-Agroindustrial-Company LLC with a bid of UAH 6 million. However, the company was disqualified, and the permit was ultimately awarded to Grintops Energy Ukraine LLC for UAH 3.32 million. This permit grants the right to extract peat for a period of 20 years.
Although the imposed fine is largely symbolic, the confirmed collusion could serve as grounds for revoking the special permit, as highlighted by the industry publication Nadra.info.
The peat deposit lies adjacent to Lake Gamaliyivka, a 1-kilometer-long technical reservoir with an average depth of 2.1 meters, originally created to supply water to the Lviv heating system.
The reservoir is fed by the Yarychivskyi Canal, which passes through peat bogs that act as a natural filtration system, ensuring high water quality. The surrounding wetlands meet the criteria of internationally significant wetlands under the Ramsar Convention.
Local authorities and nearby communities have voiced strong opposition to peat extraction in the area.
They have proposed the creation of a protected wetland reserve around the lake and envision the site as a hub for recreation, sports, and fishing.
Peat extraction would necessitate the draining of swamps. Given the proximity of the extraction site to the lake, such activity could result in overflow and potentially lead to the reservoir’s complete desiccation.
In February 2024, members of the Lviv Regional Council appealed to the Cabinet of Ministers to annul the results of the auction, citing serious environmental and regional risks.
