Annual Financial and Operational Report of ME "Volynpryrodresurs" (VPR) for 2023 Compared to 2022

Operational Efficiency of ME "Volynpryrodresurs"

The Municipal Enterprise "Volynpryrodresurs" of the Volyn Regional Council (VPR) was established to develop mineral resources and conduct legal amber extraction, aiming to create new jobs and contribute to the state and regional budgets. The development of deposits provides opportunities for Volyn region communities to thrive. Mineral extraction involves job creation, adherence to environmental standards during operations and reclamation, and the payment of royalties—a national tax for subsoil use. These royalty payments contribute to the general community budget, enabling investments in infrastructure restoration, improving residents’ quality of life, and enhancing environmental conditions.

To initiate deposit development, ME "Volynpryrodresurs" obtained the following special permits:

• Four permits (Nos. 6172, 6173, 6174, 6175) for subsoil use for amber extraction.

• Four permits (Nos. 6176, 6177, 6178, 6179) for subsoil use for peat extraction suitable for briquette production and compost preparation.

• One permit (No. 6189) for subsoil use for the extraction of complex copper ores.

Regional, district, and local authorities provided essential support, facilitating the high-quality operations of ME "Volynpryrodresurs" in legal amber extraction, particularly significant amidst the challenges posed by illegal "illegal amber miners" in the Volyn region.

Amid Russia’s full-scale war against Ukraine, which has impacted the global community, the enterprise has mobilized all resources to maintain operational efficiency under the country’s most challenging conditions. Since the onset of the invasion, ME "Volynpryrodresurs" has operated as a cohesive unit to support its employees, communities, and the state. Despite wartime difficulties, the enterprise has achieved commendable results while contributing to Ukraine’s economy.

Amber Extraction and National Leadership

In 2023, ME "Volynpryrodresurs" led Ukraine in amber extraction, producing 14,667.27 kg, according to official sources and reports. 

Compared to 2022, extraction volumes in 2023 increased nearly fivefold, reflecting the team’s professionalism and ability to implement modern resource management practices.

Link to the 2023 performance report by Roman Opimakh, Head of the State Service of Geology and Mineral Resources of Ukraine.

Comparison of Financial and Economic Indicators for 2022 and 2023

The Municipal Enterprise "Volynpryrodresurs" of the Volyn Regional Council has consistently extracted peat and amber, contributing to the Volyn Regional Budget and national tax revenues. The enterprise has once again surpassed extraction targets, reinforcing its commitment to legal and socially responsible extraction while demonstrating a high level of team professionalism.

The following compares royalty and land tax payments under the joint activity agreement with LLC "Mineral Extraction" and the agreement with the State Enterprise "VolynTorff" for 2022 and 2023

Comparison of Financial and Economic Indicators for 2022 and 2023

The Municipal Enterprise "Volynpryrodresurs" of the Volyn Regional Council is a socially responsible entity that adheres to the principle of transparency in its extraction operations, work, and services.

In 2023, ME "Volynpryrodresurs" continued its successful extraction of amber and peat. Accordingly, the financial and economic performance indicators are provided below, including those related to the implementation of the joint activity agreement with LLC "Mineral Extraction" and the agreement with the State Enterprise "Volyntorff."

Amber Extraction and Revenue from Sales

The Municipal Enterprise "Volynpryrodresurs" holds four special permits (Nos. 6172, 6173, 6174, and 6175) for subsoil use for the purpose of amber extraction. Under the joint activity agreement with LLC "Nadrovidobuvannya," ME "Volynpryrodresurs" extracted 14,667.28 kg of amber of various fractions and quality groups in 2023, selling 15,939.789 kg for a total of 114,252,293.50 UAH. As of December 31, 2023, the amber stock in the warehouse amounted to 651.224 kg.

Amber sales are conducted based on prices approved by the classifier of the State Gemological Center of the Ministry of Finance of Ukraine and the conclusions of gemological object assessments.

Peat Extraction and Revenue from Sales

The Municipal Enterprise "Volynpryrodresurs" holds four special permits (Nos. 6176, 6177, 6178, and 6179) for subsoil use for the purpose of extracting peat suitable for briquette production and compost preparation.

Russia’s strategy of terror, which includes the destruction of Ukraine’s critical infrastructure and energy facilities, underscores the critical importance of alternative energy sources for Ukraine. The Volyn region’s substantial peat deposits can enhance the productivity of the agro-industrial complex and contribute to achieving fuel and energy independence.

The remaining stock of milled peat in stockpiles from the 2023 extraction season includes:

• "Velyke Bahno": 20,924 tonnes

• "Koza Berezyna": 15,928 tonnes

In 2023, peat extraction was conducted at the "Koza-Berezyna" peat bog in the Kamian-Kashyrskyi District, serving as the raw material base for the peat briquette plant of the State Enterprise "Volyntorff." Extraction also continued at the "Velyke Bahno" deposit in the Kolky community, with peat supplied for processing to the Manevychi peat briquette plant, a branch of the State Enterprise "Volyntorff."

Sharing Expertise

The extraction of mineral resources by ME "Volynpryrodresurs" embodies a legacy of dedication, expert efforts, shared values, and a strong reputation. The enterprise recognizes the importance of responsible extraction, actively supports environmental preservation and reclamation, shares its expertise, and seeks to inspire the younger generation.

In June 2023, a comprehensive excursion was organized for members of the Volyn Regional Ecological and Naturalist Center, showcasing the peat extraction and briquette production process. Participants visited the deposit and the Manevychi peat briquette plant in Prylisne, Kamian-Kashyrskyi District. Anatolii Kapustiuk, Director of ME "Volynpryrodresurs," explained the sequence of processes to the participants.

An excursion was also conducted at amber extraction sites and the amber enrichment and processing plant. Students had the opportunity to observe various amber fractions and learned about the importance of restoring soil cover, planting vegetation, and creating favorable conditions for biodiversity recovery post-extraction.

In September, ME "Volynpryrodresurs" hosted representatives from the territorial communities of Lviv and Zakarpattia regions. Supported by the "ULEAD with Europe" program, this visit facilitated knowledge exchange for Lviv and Zakarpattia community representatives studying best practices for establishing new enterprises and fostering business collaboration, drawing on the Volyn region’s experience. The delegation observed the operations of ME "Volynpryrodresurs," established by the Volyn Regional Council to develop subsoil resources and contribute to budgets at all levels. Guests witnessed firsthand the results of collaboration and budget contributions in the Volyn communities where extraction occurs. The leadership demonstrated operational outcomes and joint project implementations. Participants not only viewed extracted amber and peat but also had the opportunity to take photos with exclusive samples of the "sunstone."

Environmental Monitoring

The State Institution "Soils Protection Institute of Ukraine" and its Volyn Branch conduct monitoring of the impact of planned activities on surface and groundwater quality. LLC "Volynekopromproekt" monitors the impact on air quality at the boundaries of the sanitary protection zone. 

A memorandum and agreement with the Ecology and Environmental Protection Department of Lesya Ukrainka Volyn National University facilitate monitoring within the scope of special subsoil use permits. Environmental monitoring includes organizing joint initiatives, fostering collaboration in practical, scientific, and educational projects. This involves monitoring amber and peat deposit sites, assessing the impact of extraction on flora and fauna, reviewing scientific publications on biodiversity, and identifying plant and animal species and habitats listed in Ukraine’s Red Book or protected under the Bern Convention.