Amber Extraction Declined: Earnings and Operations of ME Volynpryrodresurs
Municipal Enterprise Volynpryrodresurs (VPR) 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?
There have been no media reports of illegal amber mining in Volyn for the past nine years. For a more comprehensive response and assessment of the situation, Anatolii Kapustiuk recommended contacting the relevant authorities, namely the Main Directorate of the National Police in Volyn Oblast and the Volyn Regional Prosecutor's Office.
– How many employees work at ME 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, VPR 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 currently employs 17 people. 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 physically demanding nature of the work, the gender ratio is currently 65% men to 35% women – 11 men and 6 women, with women primarily engaged in administrative roles.
– Comparing the economic performance of the enterprise in 2023 and 2024, has amber extraction increased or decreased?
In 2024, ME 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 the official reports of the State Service of Geology and Subsoil of Ukraine (Derzhgeonadra), Volynpryrodresurs became the national leader in terms of the volume of amber extraction. Reports of Derzhgeonadra on amber extraction for 2024, broken down by other companies, have not yet been published.
– Has the cost of amber in different fractions and quality categories, according to the prices approved by the classifier of the State Gemological Centre of the Ministry of Finance of Ukraine for 2025, changed compared to 2023 and 2024?
The cost of amber has remained unchanged during this period. It continues to be regulated by the current version of the Classifier of the State Gemological Centre of the Ministry of Finance of Ukraine, which has been in force since September 2022.
– What were the amber extraction volumes in 2024? Why are they lower than in 2023?
In 2024, ME Volynpryrodresurs extracted almost 7 tonnes of amber, which represents approximately half of the volume extracted in 2023. The main factor behind this reduction was a six-month downtime associated with the process of formalising forest land plots and clearing them of forest plantations. This temporarily limited the possibility of conducting work, resulting in a decrease in the amount of amber extracted. However, this did not affect the enterprise's profitability, as we increased sales of peat briquettes and milled peat. This 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, the enterprise extracted 6,754.524 kg of amber and sold 6,246.120 kg for a total amount of UAH 58.859 million.
In 2023, 14,667.280 kg of amber were extracted and 15,939.789 kg were sold, generating UAH 114.252 million in revenue.
In 2022, 4,710.430 kg were extracted and 3,247.923 kg were sold for a total of UAH 43.1 million.
In 2021, 6,854.697 kg were extracted and 6,432.619 kg were sold, with sales amounting to UAH 97.065 million.
In 2020, 2,061.520 kg were extracted and 375.527 kg were sold for UAH 5.907 million.
Volynpryrodresurs received special permits for amber extraction in 2017, but actual mining operations commenced only in 2020. Before the full-scale war (prior to 2022), the volume of amber sales was lower than in 2023. Overall, since the beginning of its operations, the enterprise has extracted and sold 35,048.451 kg of amber 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?
The total amount of royalties from amber extraction paid between 2020 and 2024 reached 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 presented within the framework of: the joint activity agreement with LLC Mineral Extraction, and the contract with LLC Agrobiostandart, the legal successor of the state enterprise Volyntorf.
Financial and Economic Performance Indicators for 2024 Compared to 2023
– 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 constitutes 15% of the enterprise’s net profit, in accordance with the decision of the Volyn Regional Council. Between 2020 and 2024, a total of nearly UAH 12 million was transferred.
Specifically: 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?
Volynpryrodresurs sells amber in accordance with the Classifier of the State Gemological Center of the Ministry of Finance of Ukraine, which guarantees transparent pricing and compliance with national standards.
The value of amber is determined based on its fraction (weight) and quality group.
In 2024, China purchased 86.76% of Volyn amber, Poland purchased 9.84%, and Ukraine purchased 3.4%.
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 territorial communities (TC) of the region?
Peat extraction was carried out at the Velyke Bahno deposit in the Kolky territorial 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 2 February 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:
four special permits for subsoil use for amber extraction, valid for 20 years,
four special permits for subsoil use for peat extraction suitable for briquette production and composting, valid for 20 years,
and on 13 March 2017, one special permit for subsoil use for complex copper ore extraction, also 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 land reclamation, restoring the disturbed areas for further use. In particular, in territories where amber has been extracted, work is carried out to restore the landscape and ecosystem. An important stage between mining-technical and full biological reclamation is forest planting. For example, when extraction is completed in spring and forest planting is scheduled for autumn, the enterprise uses the interim period to create a food base for wild animals. In these areas, corn, rye, and wheat are sown. Later, these reclaimed territories attract wild boars, elk, and deer.
The enterprise pays special attention not only to the areas where extraction is carried out but also to the adjacent territories. This approach ensures a comprehensive assessment of the environmental impact of production activities.
– After the privatisation of the state enterprise Volyntorf, what is the current cooperation with the new owners like? Does it exist at all?
Following the privatisation of the state enterprise Volyntorf, its new owner became LLC Agrobiostandart. Previously, Volyntorf closely cooperated with Volynpryrodresurs, which supplied raw materials for peat briquette production. After the change of ownership, the cooperation agreements were renegotiated. However, the cooperation has become more challenging: contractual obligations regarding annual planned extraction volumes are not being fully met, and peatland preparation for the development of new sites has almost come to a halt. From the side of the Municipal Enterprise Volynpryrodresurs, continuous claims work is underway to recover debts for milled peat, while LLC Agrobiostandart regularly requests payment deferrals, complicating the partnership further.
– What are the prospects and plans for amber and peat extraction in 2025?
In 2025, the Municipal Enterprise Volynpryrodresurs plans to increase the extraction of amber and peat.
To achieve this, the enterprise intends to develop new sites. Additionally, the enterprise intends to strengthen its cooperation with local communities and expand its international partnerships. Adherence to environmental standards and the implementation of land reclamation measures after extraction remain important aspects of the enterprise’s activities.
This complies with modern requirements for responsible use of natural resources and contributes to environmental preservation.
SOURCE: СУСПІЛЬНЕ ЛУЦЬК