Amber mining decreased: how much did ME "Volynpryrodresurs" earn and how does it operate?
The Municipal Enterprise “Volynpryrodresurs” was established in 2016 to prevent illegal amber mining. Has it managed to fulfill its function, how has the enterprise’s work changed during the full-scale invasion, and is it unprofitable?
Director of the enterprise, Anatolii Kapustiuk, answered these and other questions for Suspilne.
Amber Extraction and Its Sale
– Has illegal amber mining decreased?
Over the past nine years, there have been no reports in the media about illegal diggers extracting amber in Volyn. Regarding this matter and for a more complete answer and assessment of the situation, Anatolii Kapustiuk recommended contacting the authorized holders of this information — the Main Department of the National Police in Volyn region and the Volyn Regional Prosecutor’s Office.
– How many employees work at the Municipal Enterprise “Volynpryrodresurs”? What is the gender distribution? Has the full-scale war affected the number of employees? What is the situation with deferments (reservations)?
By order of the Volyn Regional Military Administration, the Municipal Enterprise “Volynpryrodresurs” has been designated as critically important for the functioning of the regional economy, which allowed the reservation of 50% of the staff among employees liable for military service.
The enterprise employs 17 workers. We strive to create equal conditions for all employees regardless of gender, ensuring a fair distribution of opportunities for career growth, professional development, and decent remuneration. However, given the physical demands of the work areas, the ratio of men to women at the enterprise is 65/35% — 11 men and 6 women, who are mostly engaged in administrative work.
– If we compare the economic indicators of the enterprise’s activity in 2023 and 2024, did amber extraction increase or decrease?
In 2024, the Municipal Enterprise “Volynpryrodresurs” extracted 6,754.524 kg of amber, which is significantly less compared to 14,667.280 kg extracted in 2023.
In 2023, according to official reports of the State Service of Geology and Subsoil of Ukraine (Derzhgeonadra), the enterprise “Volynpryrodresurs” became the leader in Ukraine in terms of the amount of amber extracted. Reports of Derzhgeonadra on amber extraction for 2024, broken down by other companies, have not yet been published.
– Has the cost of amber of different fractions and quality groups, according to the prices approved by the classifier of the State Gemological Center of the Ministry of Finance of Ukraine in 2025, changed compared to 2023 and 2024?
The cost of amber has not changed during this period, as it is regulated by the current version of the Classifier of the State Gemological Center of the Ministry of Finance of Ukraine from September 2022.
– What was the amber extraction in 2024? Why is it less than in 2023?
In 2024, ME "Volynpryrodresurs" extracted almost 7 tonnes of amber, which is half the amount extracted in 2023. The main factor influencing the reduction in extraction volumes was a six-month downtime related to the process of formalizing forest land plots and clearing them of forest plantations. This temporarily limited the possibility of conducting work, which led to a decrease in the amount of amber extracted. Despite this, the decrease in amber extraction did not affect the profitability of the enterprise, as we increased the sale of peat briquettes and milling peat, which allowed us to significantly exceed the financial plans for 2024 approved by the Volyn Regional Council.
– How much amber did the enterprise sell in 2024? Was it less or more than in 2023? What was the situation before the full-scale war?
In 2024, 6,754.524 kg of amber were extracted, and 6,246.120 kg of amber were sold for a total of UAH 58.859 million.
In 2023, 14,667.280 kg of amber were extracted, and 15,939.789 kg were sold for a total of UAH 114.252 million.
In 2022, 4,710.430 kg of amber were extracted, and 3,247.923 kg were sold for a total of UAH 43.1 million.
In 2021, 6,854.697 kg of amber were extracted, and 6,432.619 kg were sold for a total of UAH 97.065 million.
In 2020, 2,061.520 kg of amber were extracted, and 375.527 kg were sold for a total of UAH 5.907 million.
“Volynpryrodresurs” received special permits for amber extraction in 2017, but actual mining operations began only in 2020. Before the full-scale war (before 2022), the volume of amber sales was lower than in 2023. Overall, since the enterprise began operations, 35,048.451 kg of amber have been extracted and sold for a total of UAH 319.183 million.
Rent and Taxes
– The enterprise transfers royalties from mineral extraction to the budgets of territorial communities. How much was paid in 2024 and to which communities?
Загальна рента від видобутку бурштину, сплачена з 2020 по 2024 роки – 28 240 017,51 грн.
The total royalties from amber extraction paid between 2020 and 2024 amounted to UAH 28,240,017.51.
In 2024, the Municipal Enterprise “Volynpryrodresurs” paid UAH 6,047,965.30 in royalties to local communities. The indicators of financial and economic activity are also provided in the context of the joint activity agreement with LLC “MINERAL EXTRACTION” and the contract with LLC “Agrobiostandart” – the legal successors of the state enterprise “Volyntorf.”
Показники фінансово-господарської діяльності за 2024 рік у порівнянні з 2023 роком. КП «Волиньприродресурс»
– How much money was transferred to the regional budget from the activities of the municipal enterprise “Volynpryrodresurs”?
The total amount of dividends transferred by the municipal enterprise “Volynpryrodresurs” to the general fund of the regional budget is 15% of the net profit of the municipal enterprise, in accordance with the decision of the Volyn Regional Council. For the period from 2020 to 2024, nearly UAH 12 million was paid.
In particular, in 2020 – UAH 32,599 thousand, in 2021 – UAH 1.467 million, in 2022 – UAH 1.297 million, in 2023 – UAH 4.361 million, and in 2024 – UAH 4.790 million.
– To which countries was amber mined in Volyn exported in 2024?
VPR sells amber in accordance with the classifier of the State Gemological Center of the Ministry of Finance of Ukraine, which ensures pricing transparency and compliance with standards.
The value of amber is determined by its fraction (weight) and quality group.
In 2024, 86.76% of Volyn amber was purchased by China, 9.84% by Poland, and 3.4% by Ukraine.
How much and what kind of amber was sold by VPR
Peat Extraction and Land Reclamation
– The sale of peat and peat briquettes is also one of the enterprise’s activities. If we compare the figures for 2023 and 2024, in which year was more extracted? On which territories of the region?
Peat extraction was carried out at the “Velyke Bahno” deposit in the Kolky community, the “Koza-Berezyna” deposit in the Prylisne community, and the “Velyke Boloto” deposit in the Manevychi community.
– What extraction permits for amber and peat does the enterprise hold? How often must these documents be renewed?
On February 2, 2017, the municipal enterprise “Volynpryrodresurs” received from the State Service of Geology and Subsoil of Ukraine, with the approval of the Ministry of Ecology and Natural Resources of Ukraine:
4 special permits for the use of subsoil for amber extraction valid for 20 years,
4 special permits for the use of subsoil for peat extraction suitable for briquette production and composting valid for 20 years, and
on March 13, 2017, a special permit for the use of subsoil for complex copper ore extraction valid for 20 years.
– What do you do with the areas where extraction has been completed? How many reclaimed areas are there already in Volyn?
After the completion of mineral extraction, the municipal enterprise carries out reclamation of the disturbed lands, restoring them for further use. In particular, in the territories where amber is extracted, work is carried out to restore the landscape and ecosystem. The intermediate stage between mining-technical and full biological reclamation – forest planting – also plays an important role. For example, when work is completed in the spring and forest planting is planned for the autumn, the enterprise uses this period to create a food base for animals. In these areas, corn, rye, and wheat were sown. Afterwards, wild boars, elk, and deer appear in these territories.
The enterprise pays special attention not only to the territories where extraction is carried out, but also to the adjacent plots. This ensures a comprehensive approach to studying the impact of production activities on the environment.
– After the privatization of the state enterprise “Volyntorf,” what is the cooperation like now with the new owners, and does it exist at all?
After the privatization of the state enterprise “Volyntorf,” the new owner became the company LLC “Agrobiostandart.” Before that, “Volyntorf” closely cooperated with the enterprise “Volynpryrodresurs,” which supplied raw materials for peat briquette production. After the change of ownership, cooperation agreements were renegotiated. The work is difficult: contractual obligations regarding the annual planned extraction volumes are not being fully met, and peatland preparation works for the development of new sites have almost stopped. On the part of the Municipal Enterprise “Volynpryrodresurs,” constant claims work is being carried out to recover debts for milled peat, as well as continuous payment deferrals initiated by LLC “Agrobiostandart.”
– What are the prospects and plans for amber and peat extraction in 2025?
In 2025, the Municipal Enterprise “Volynpryrodresurs” plans to increase the volumes of amber and peat extraction.
To implement these plans, the enterprise intends to develop new sites. In addition, the enterprise plans to strengthen cooperation with local communities and expand international partnerships. An important aspect of the enterprise’s activities remains adherence to environmental standards and the implementation of land reclamation measures after extraction.
This complies with modern requirements for responsible use of natural resources and contributes to environmental preservation.
SOURCE: СУСПІЛЬНЕ ЛУЦЬК