Only 3,500 of 20,000 mineral deposits are being developed in Ukraine

The signing of the U.S.-Ukraine Reconstruction Investment Fund Agreement has sparked hope for real investment in Ukraine's geological exploration and subsoil use sector, according to Pavlo Zahorodniuk, President of the Ukrainian Association of Geologists.

At present, exploration of new mineral deposits in Ukraine is nearly non-existent, with a growing problem of "dormant licenses"—cases where no work is being conducted on known or prospective sites.

"Thanks to the effective work of geological services, Ukraine has discovered around 20,000 deposits and occurrences of 105 types of minerals," Zahorodniuk stated during the VII Congress of Ukrainian Geologists, titled ‘Ukrainian Geology in the Context of Modern Geopolitical Challenges’."Of these, about 3,500 have been developed since Soviet times. Many of them have since been privatized, primarily by private enterprises. However, exploration of new deposits has all but stopped."

Currently, Naftogaz of Ukraine is the only company actively engaged in the exploration of new mineral fields, Zahorodniuk noted.

"That’s why signing this agreement with the United States is so important—it provides at least a glimmer of hope that investment will finally enter this critical sector," he said.

He stressed that the geological exploration and subsoil use industry faces many obstacles.

"Every mineral developer encounters serious challenges—environmental, social, and technical. Project development is long-term, capital-intensive, and, unfortunately, not always highly profitable," Zahorodniuk explained."This is a complex industry. It’s a positive sign that American investors are taking an interest. Their involvement could revitalize the geological sector in Ukraine and improve employment opportunities for our professionals."

• The intergovernmental agreement between Ukraine and the United States foresees the inclusion of not only new licenses but also existing ‘dormant’ ones. First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko stated that the fund would be financed exclusively through revenues from new licenses—but this is not entirely accurate.
• The Ministry of Environmental Protection and Natural Resources plans to intensify efforts against dormant licenses, which currently prevent full utilization of Ukraine’s geological potential. Lists have already been compiled of licensed sites where no operations have begun or where extraction has totaled less than 1% over the past decade.