9 Years of Success of ME Volynpryrodresurs: the Only Municipal Enterprise in Ukraine that Legally Extracts Amber
On 13 April 2025, the Municipal Enterprise Volynpryrodresurs of the Volyn Regional Council (VPR) celebrates the 9th anniversary of its establishment. Over this period, the enterprise has become a model of effective management of Volyn’s natural resources and an example of how a municipal structure can be successful, modern, and development-oriented.
While in Rivne and Zhytomyr regions private companies compete for the right to develop deposits, in the Volyn region the exclusive right to legal amber extraction belongs solely to the Municipal Enterprise Volynpryrodresurs.
Since its establishment in 2016, Volynpryrodresurs has travelled a challenging path, from setting out with the ambitious goal of legalising amber extraction in Volyn and countering illegal schemes, to becoming a leader in the industry. The enterprisehas demonstrated resilience even under wartime conditions. This anniversary is an opportunity not only to summarise results, but also to reflect on the difficult journey undertaken.
The Beginning and the Story of Establishment
The idea of establishing Volynpryrodresurs emerged at a time when the problem of illegal amber mining in Ukraine had reached a critical level. The so-called “amber fever” caused enormous damage to the environment, the economy, and social stability, and began to spread to the Volyn region. According to expert estimates, between 120 and 300 tonnes of amber were illegally mined annually in Ukraine, with neither the state budget nor local communities receiving any revenues from this activity.
In 2016, the Volyn Regional Council took the decision to establish a municipal enterprise that would regulate the extraction of natural resources and direct profits towards the development of the region.
Volynpryrodresurs was officially registered on 13 April 2016. The initiative to establish the enterprise was put forward by the then Head of the Volyn Regional Council, Ihor Palytsia. The first steps were not easy: the enterprise faced bureaucratic and legislative barriers as well as political pressure.
The Start of Legal Amber Mining in Volyn: Why 2020?
Although the enterprise obtained special permits for extraction back in 2017, the real beginning of successful activity came in late 2020 – when long-awaited amber mining was officially launched. This period marked a turning point, enabled by a series of legislative, economic, and organisational changes that allowed the transition from plans and preparation to active extraction.
In September 2019, the Cabinet of Ministers of Ukraine announced its intention to legalise amber mining, which came into effect in 2020.
In 2019, Ukrainian President Volodymyr Zelenskyy signed Law No. 2240 on regulating amber extraction, which reduced the rent for amber extraction from 25% to 15%. Additionally, 30% of the rent from amber extraction were allocated to territorial communities. The Criminal Code of Ukraine was amended with Article 240-1, titled "Illegal Extraction, Sale, Acquisition, Transfer, Shipment, Transportation, Processing of Amber." These legislative changes were aimed at promoting legal amber extraction and combating the shadow market, which was intended to increase budget revenues and improve resource control.
Anatolii Kapustiuk was appointed Acting Director in September 2020, following the dismissal of the previous head. Under his leadership, the enterprise repaid its debts, streamlined its organisational structure and began operating at its deposits. Within the first month of work, more than one tonne of amber was extracted.
In 2020, thanks to legalisation and the change of leadership, the enterprise extracted 2,061.520 kg of amber and held its first auctions, selling 375.527 kg for UAH 5.907 million, marking the beginning of growth.
Amber Mining Results from 2020 to 2024
Since the beginning of legal mining in 2020, the Municipal Enterprise “Volynpryrodresurs” has been steadily increasing its production volumes despite the difficult economic situation and the full-scale war.
In 2023, the company achieved record results and became the leader of the amber industry in Ukraine.
Overall, over five years of mining activity, 35,048.451 kg of amber have been extracted, and sales amounted to UAH 319.183 million.
Annual figures:
2020 — 2,061.520 kg extracted, 375.527 kg sold (UAH 5.9 million)
2021 — 6,854.697 kg extracted, 6,432.619 kg sold (UAH 97.1 million)
2022 — 4,710.430 kg extracted, 3,247.923 kg sold (UAH 43.1 million)
2023 — 14,667.280 kg extracted, 15,939.789 kg sold (UAH 114.3 million)
2024 — 6,754.524 kg extracted, 6,246.120 kg sold (UAH 58.9 million)
Support for Communities: Rent Payments
ME “Volynpryrodresurs” not only extracts amber but also supports territorial communities through rent payments. From 2020 to 2024, the company paid a total of UAH 28,240,017.51 in rent. These funds are directed toward social needs, infrastructure, and community development in the mining areas.
Contribution to the Regional Budget
The company’s activities are also important for the Volyn region as a whole. According to the decision of the Volyn Regional Council, VPR transfers 15% of its net profit as dividends to the general fund of the regional budget.
Between 2020 and 2024, this contribution amounted to UAH 11,949,409.38, including:
2020 — UAH 32,599.38
2021 — UAH 1,467,391
2022 — UAH 1,297,103
2023 — UAH 4,361,321
2024 — UAH 4,790,995
The growth of contributions in 2023–2024 reflects improved efficiency, even though the war continues to impact the overall economy.
Who Buys Volyn Amber: Sales Markets in 2024
In 2024, Municipal Enterprise “Volynpryrodresurs” successfully sold 6,246.120 kg of amber totaling UAH 58.859 million, with a significant share exported.
Due to the full-scale war, Ukraine faced serious logistical challenges that particularly affected export-oriented industries. Difficulties with border crossings, changes in customs and transport regulations created additional barriers for amber exports.
Nevertheless, ME “Volynpryrodresurs” quickly adapted to the new conditions:
alternative logistics routes through western border checkpoints were established,
document processing was improved,
direct agreements were signed with reliable international partners, including in China.
Thanks to these measures, the company maintained stable supplies, sustained export volumes, and preserved its position in foreign markets — continuing to promote Ukrainian amber as a high-quality and legal product.
The primary buyer of Volyn’s “sunstone” was China, which purchased 86.76% of the total volume — 5,418.873 kg. Poland, as one of the traditional markets for Ukrainian amber, accounted for 9.84% (614.730 kg), while the domestic Ukrainian market purchased only 3.4% (212.517 kg).
There is a noticeably high demand for unique and high-quality Volyn amber on the international stage, particularly in China — a country with a developed jewelry industry, a deep cultural respect for amber, and a long-standing tradition of using it not only in jewelry and decorative art but also in traditional medicine, where the “sunstone” is valued for its calming properties. Meanwhile, the relatively small share of sales within Ukraine highlights the need to develop the domestic processing market and create added value.
Amber sales by VPR are conducted exclusively according to the classifier of the State Gemological Center of the Ministry of Finance of Ukraine, ensuring transparent pricing and compliance with quality standards. The value of the stone depends on its size fraction (weight) and quality group.
In 2024, the largest sales volumes came from fractions of 0–2 g (1,947.920 kg) and 2–5 g (1,312.722 kg), which are highly valued for jewelry and artistic products.
Environmental Responsibility: Transparency and Care for Nature
ME “Volynpryrodresurs” positions itself as an environmentally responsible enterprise committed to minimizing the impact of amber and peat extraction on the environment of the Volyn region. The company implements land reclamation measures and regularly monitors the state of the natural environment.
Reclaimed Area After Amber Extraction
The enterprise regularly publishes reports on the results of monitoring studies regarding the environmental impact of its activities on its official website www.vpr.ua. Such an open approach allows the public, scientists, and environmental organizations to be assured of the company’s responsibility.
Transparency and Educational Value
VPR actively engages young people and scientists in excursions to amber deposits and peatlands, demonstrating the transparency of its work and promoting knowledge about natural resources.
For schoolchildren, these excursions are a true adventure: they can hold freshly extracted amber in their hands and learn about its value. Students of specialized fields such as geology or ecology gain practical knowledge about modern extraction methods and their environmental impact. Such activities not only popularize the enterprise’s work but also motivate young people to choose professions related to natural resources, contributing to the development of the region’s human potential.
VPR also educates visitors about land reclamation and the energy role of peat, emphasizing the balance between economic growth and environmental preservation. These initiatives not only make ME “Volynpryrodresurs” more open to the public but also help shape a new generation that values the legal and responsible use of Volyn’s natural wealth.
Such visits are not just trips to a production site but real scientific and practical journeys into the geology of Volyn.
Prospects of the Enterprise
Maintaining high extraction rates, actively exporting amber, and modernizing production processes are all laying a strong foundation for even greater efficiency in the future.
In 2024, the enterprise made a significant financial contribution to the region’s development, allocating around 5 million UAH to the regional budget and over 6 million UAH in rent payments to territorial communities. Personal income tax (PIT) amounted to more than 4 million UAH, and the unified social contribution (USC) also exceeded 4 million UAH.
These financial indicators not only confirm the stability and responsibility of VPR but also demonstrate its vital role as a budget-generating enterprise in the region. The funds systematically directed to the regional and local budgets are not just numbers — they are real investments in infrastructure development, social programs, education, and healthcare in Volyn.
Looking ahead, ME “Volynpryrodresurs” plans to develop new licensed sites, expand export geography, and further strengthen its educational and outreach activities. The company remains open to new partnerships and continues working on shaping a positive global image of Ukrainian amber.