The Extractive Industries Transparency Initiative (EITI) multi-stakeholder group has approved the 2020 report. The document summarizes the activities of 9 extractive industries in Ukraine (oil and gas production, coal, iron ores, titanium, manganese, refractory clays, refractory clays, quartz sand, building stone) and the oil transportation industry.
According to the report, the share of the extractive industries in the total export volume of Ukraine in the reporting period increased and amounted to 5.96% (in 2019 - 3.42%), which was mainly due to the growth in the value of the exported volume of non-agglomerated iron ores. The share of payments from the reporting extractive industries in all tax and non-tax revenues to the state in the reporting year amounted to 11.21% (187 billion hryvnia). The largest volume of payments to the state was made by the oil and natural gas industry (UAH 149 billion).
“This is an important document. This year, a number of measures were taken to successfully implement the EITI in Ukraine and improve the reporting process, ”said Yulia Pidkomorna, Deputy Minister of Energy of Ukraine, who took part in the group meeting.
She stressed that this year a dialogue has been established with stakeholders in the mining regions. In particular, in the Lviv region, work is being completed on the creation of a regional multi-stakeholder group. Also, by the end of December, it is planned to hold online events to find a balance of interests of local communities, authorities and companies in the extractive industries in Kharkiv and Poltava regions.
The contribution of the extractive industries to the capital investments of Ukraine amounted to 10.66% of their total volume in 2020 or 44.8 billion hryvnia. Significant capital investments were made by the iron ore and natural gas industries, totaling 76.83% of the reported extractive industries' capital investments in 2020. According to the State Statistics Service, in 2020, the extractive industries employed 2.54% of the average number of full-time workers in Ukraine: 186.4 thousand people, of which 74.68% were men and 25.32% were women.
Ukraine joined the EITI in 2013. It is an international standard that provides for the disclosure of information on the state of affairs in the country's extractive sector and aimed at ensuring transparency in the management of the country's natural resources.
