Without a predictable tax and tariff policy, it is impossible to attract foreign investment to Ukraine. This opinion was expressed by Oleksandr Vodoviz, Head of the Office of the CEO of Metinvest Group, at the conference “Strategic Resources of Ukraine: Development Scenarios for the Subsoil Use Industry”.
Vodoviz emphasized that the mining and processing business is capital-intensive and requires significant initial investments. Stability and predictability of government policy are crucial for attracting large international players. For instance, developing a mine similar to the one in Pokrovsk would require around US$10 billion.
Projects in the mining industry have a long payback period, taking an average of 18 years to go from obtaining a license to launching an enrichment facility. Currently, there are some projects at the feasibility stage, but none are ready.
Ukrainian businesses are mostly investing independently in the development and maintenance of enterprises and the mining industry. They invest an average of US$1 billion annually.
Vodoviz highlighted the challenges of operating businesses during the ongoing war and the need for the government to consider this factor when integrating European legislation. The process of rapprochement with the EU will involve 550 regulations in the extractive industry and will take 4-5 years.
In January 2025, Metinvest announced the temporary suspension of Pokrovske Coal Group’s operations due to the security situation on the frontline and electricity shortages. The company is replacing Ukrainian coal with supplies from the United States.
