Ukraine possesses significant potential in the extractive industry, as its territory is home to deposits of 24 out of 34 critical minerals identified by the European Union. Among them are lithium, graphite, and titanium, which play a key role in modern technologies.
This is reported by Business • Media
Investment Climate and Challenges of Wartime
Despite the war, the investment attractiveness index of Ukraine’s extractive sector rose to 2.49 out of 5 possible points last year, compared to 2.44 points in 2023. This indicates a certain increase in investor confidence even in the context of a challenging security situation. However, for further development of the sector, experts emphasize the need to create a favorable environment for potential investors today, focusing on the prospects of post-war recovery of the country.
Necessary Conditions for Industry Development
For the effective operation of the extractive sector, the state must ensure:
- a predictable tariff policy for state monopolies;
- affordable prices for energy resources;
- the possibility of obtaining long-term loans;
- liberalization of currency regulation;
- an effective system of insurance against war risks;
- a favorable tax policy.
Ensuring security for businesses, cessation of hostilities, and providing reliable guarantees are important prerequisites for attracting capital.
The strategic agreement between Ukraine and the USA on the establishment of an Investment Fund for Reconstruction and the prospects for participation in European programs open new opportunities for the domestic extractive industry.
Already, global investors are showing interest in Ukrainian extraction projects, which creates a foundation for the future economic growth of the country and its integration into the global raw materials market.