Ukraine is reforming its war-battered minerals sector in a bid to unlock its vast potential and attract billions in investment, following a landmark minerals deal with the United States, according to Ecology Minister Svitlana Hrynchuk.
The country holds deposits of 22 out of 34 minerals classified as critical by the European Union essential for defence, high-tech industries, and green energy. It also possesses ferroalloys, precious and non-ferrous metals vital for construction, and some rare earth elements. However, decades of underdevelopment, Soviet-era bureaucracy, and lack of funding have hindered growth.
After months of tense negotiations, Kyiv and Washington reached a minerals agreement in April, strongly backed by U.S. President Donald Trump. The deal established a joint investment fund activated on 23 May that will reinvest proceeds from new mining licences into Ukraine’s mineral projects.
According to Hrynchuk “The natural resources sector currently accounts for 4% of GDP, but its potential is far greater,”  adding that extraction requires significant capital and long-term commitment. She expressed hope that the deal would attract more foreign investment and provide clarity for investors.
Despite ongoing conflict, with half the country’s mineral wealth and a fifth of its territory under Russian occupation, Ukraine is pushing ahead. It has lost access to most coal reserves, along with lithium, manganese, and other critical deposits. Hrynchuk estimated the sector’s losses at around 70 trillion hryvnias (approximately $1.7 trillion).
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The government has updated its resources strategy, focusing on improving geological data access, cutting red tape, and finalising its list of strategic minerals. These reforms align with Ukraine’s broader goal of joining the European Union by 2030.
Digitisation and Licensing Drive
In partnership with the European Commission and the European Bank for Reconstruction and Development, Ukraine is digitising up to 80% of Soviet-era geological data currently 40% complete. Simultaneously, it is reviewing around 3,000 mining licences, around 10% of which may be inactive.
“We don’t aim to seize assets with potential,” Hrynchuk said. “But for those idle for over a decade, we will make strategic decisions to bring them back into circulation.”
The licence review will continue into next year. Meanwhile, the government is pressing on with auctions, raising 2.4 billion hryvnias in 2024 from 120 licences. This year, it aims to match that figure and has already issued 32 licences, mostly for construction materials such as clay, sand, marble, and granite alongside amber.
Domestic investors have shown interest in oil and gas exploration, as well as in minerals like titanium, graphite, and manganese.
The U.S. deal was finalised despite tensions between President Volodymyr Zelensky and President Trump during a February meeting at the White House. Officials exchanged final documents last week, enabling the investment fund to commence operations. While implementation will take time, the agreement described by U.S. Treasury Secretary Scott Bessent as a “full economic partnership” grants the U.S. preferential access to Ukraine’s mineral resources and supports the country’s post-war reconstruction.
