Anatolii Kapustiuk: “8 Years Since the Establishment of KP “Volynpryrodresurs”, the History of Its Foundation and Path Through Obstacles”
Recently, the ME “Volynpryrodresurs” – the largest enterprise created for the legal extraction of amber, celebrated its eighth anniversary since its founding.
Counteracting the “Amber Fever” in the Volyn Region
According to the State Service of Geology and Mineral Resources, amber deposits span an area of approximately 380,000 hectares, positioning Ukraine among the leaders in global amber reserves. While legislative regulation regarding the legal extraction of amber in Ukraine has been unfavorable and sabotaged at the state level, from 2012 to 2015, “amber fever” swept through the territories of Rivne, Zhytomyr, and Volyn regions. This phenomenon is one of the most scandalous events reflecting a terrible attitude towards the environment. The illegally extracted amber did not yield any revenue for local communities or contribute to the state treasury; instead, it ended up in the pockets of illegal miners, criminals, and law enforcement officials who “covered” this trade. Illegal miners indiscriminately dug up and washed areas in search of amber, leaving behind “lunar landscapes” where forests and meadows once thrived.
In response to the “amber fever” that hit Volyn in 2015, the then head of the regional council, Ihor Palytsia, initiated the establishment of the ME “Volynpryrodresurs” in 2016 as a solution to the problem. He believed that this would regulate the situation regarding the use of natural resources in Volyn region and increase local budget revenues. The thesis has always been unchanged: everything that is underground should belong to the people of Ukraine.
Ihor Palytsia said on April 9, 2016:
“No one, no private company will be granted permission to develop amber. Natural resources should work for the benefit of Volyn region.”
On March 10, 2016, the Volyn Regional Council of the seventh convocation, at the initiative of Ihor Palitsa, adopted decision No. 3/18 on the establishment of ME “Volynpryrodresurs” of the Volyn Regional Council. This decision united deputies from various groups and factions around the idea of creating the first municipal enterprise in Ukraine for amber extraction as a single legal option to address the problem of illegal amber mining that had emerged in Volyn. The decision was approved by a majority of the total composition: out of 52 votes cast, 46 were “for,” and there were no votes “against.” Members of the “European Solidarity” party did not vote or abstained.
Thus, the municipal enterprise “Volynpryrodresurs” was established by the Volyn Regional Council with the aim of developing mineral resources and legal extraction of amber, which was intended to create new jobs and fill the budgets of both the Volyn Regional Council and the state. The enterprise immediately began working on documentation, obtaining approvals in the process of acquiring special permits for subsoil use.
On 02.02.2017, the Municipal Enterprise “Volynpryrodresurs” of the Volyn Regional Council received from the State Service of Geology and Mineral Resources of Ukraine (Derzhheonadra), with the approval of the Ministry of Environmental Protection and Natural Resources of Ukraine:
4 special permits (No. 6172, No. 6173, No. 6174, No. 6175) for subsoil use for the purpose of amber extraction for a term of 20 years;
4 special permits (No. 6176, No. 6177, No. 6178, No. 6179) for subsoil use for the purpose of peat extraction suitable for briquette production and compost preparation, for a term of 20 years;
on March 13, 2017, special permit (No. 6189) for subsoil use for the purpose of extracting complex copper ores, for a term of 20 years.
The communal enterprise “Volynpryrodresurs” together with law enforcement agencies has become a necessary barrier against the spread of illegal mining in the region, and currently, such cases have dropped to zero. Thus, one of the main goals of creating the communal enterprise was to stop illegal amber mining and to cease causing harm to the environment and ecology as a whole. After extraction activities, “Volynpryrodresurs” fully recultivates the worked-out areas, rather than leaving behind dug-up plots and an empty treasury, as was the case during the activities of illegal miners.
Difficulties and Obstacles in the Work of the Enterprise
The lack of support for the establishment of a municipal enterprise as an effective solution to the problem of illegal amber mining by then-President Petro Poroshenko, which was clearly contrary to his vision for resolving issues related to illegal extraction, resulted in persecution by law enforcement agencies against the municipal enterprise immediately after it received licenses. Moreover, the Volyn Regional Council was accused of attempting to create a new “amber republic” in Volyn through the municipal enterprise.
Immediately after receiving special permits on February 2, 2017, for amber extraction, the Prosecutor General’s Office and the Security Service of Ukraine opened a criminal case against the municipal enterprise and officials of the State Service of Geology and Mineral Resources of Ukraine. Allegedly, the State Geology and Mineral Resources issued special permits for subsoil use for a period of 20 years to “Volynpryrodresurs,” entering into a conspiracy. On February 15, 2017, representatives from the Prosecutor General’s Office and The Rapid Operational Response Unit commonly abbreviated KORD visited with automatic weapons, visited the Volyn Regional Council, the municipal enterprise, State Geology and Mineral Resources, Ministry of Environmental, State Commission of Ukraine on Mineral Reserves, GeoInform, as well as deputies of the regional council and employees of the municipal enterprise to conduct searches and seize documents.
From 2017 to 2019, legal battles unfolded across all instances regarding the special permits for amber extraction in Ukraine. The General Prosecutor’s Office (GPO) filed a lawsuit with the Kyiv District Administrative Court seeking to annul the special permits granted to the municipal enterprise “Volynpryrodresurs.” This case eventually escalated to the Supreme Court of Ukraine.
On March 19, 2019, the Supreme Court delivered its final ruling: it dismissed the appeal of the General Prosecutor’s Office concerning the annulment of special permits for the municipal enterprise “Volynpryrodresurs” to extract amber in the Volyn region.
Through criminal cases, searches, and intimidation tactics, influential patrons in Kyiv attempted to disrupt the commencement of legal amber extraction in Volyn and effectively paralyzed the operations of “Volynpryrodresurs,” which was established as Ukraine’s sole municipal enterprise for amber extraction. At that time, however, the state did not offer a systematic alternative for amber extraction while illegal miners operated rampant across various regions. This situation primarily benefited those who were complicit in covering up illegal amber mining activities, not just in Volyn but throughout Ukraine.
Hryhoriy Nedopad, Head of the Volyn Regional Council, told VSN journalists about the difficulties and obstacles in the enterprise's work in an exclusive interview on 2 March 2024.
“At that time in 2017, the then authorities were very negative about this. I don’t know why, perhaps they did not need a controlled legal extraction process and it hindered them. So, they probably had their own benefits from illegal extraction. Therefore, they blocked the operation of the enterprise for years… – said Hryhoriy Nedopad. – This eventually led to proceedings and lawsuits that reached even the Supreme Court, in which we never lost, as all special permits for subsoil use were obtained legally. Fortunately, all this is in the past, and in 2020 the enterprise started operating.”
After three years of artificial blocking, the communal enterprise “Volynpryrodresurs” was able to start legal extraction of minerals in the fall of 2020. The communal enterprise “Volynpryrodresurs” of the Volyn Regional Council began legal amber mining in the region: a rent is paid from the extraction, 70% of which goes to the state budget, and 30% goes to the community, including personal income tax (PIT) and profit tax, which contribute to filling local and regional budgets.
Activity of "VPR" as of 2024
In the context of a full-scale war, KP “Volynpryrodresurs” has managed to achieve excellent results. The enterprise has increased its capacity, and in 2023 it became a leader in Ukraine in terms of the amount of amber extracted, having mined 14,667.27 kg. Compared to 2022, the extraction figures increased fivefold in 2023; such results indicate the professionalism of the team and their ability to implement modern resource management methods.
Anatolii Kapustiuk has been the director of the company since 2021.
SOURCE: Волинська Служба Новин