Recent research reveals that over 2,268 companies and 78 individuals hold special permits to exploit Ukraine’s rich subsoil, with interests spanning 51 countries. This article examines the intricate network of legal entities involved in the extraction of critical minerals such as titanium, lithium, and graphite—and what it means for foreign businesses entering the Ukrainian market.
Overview of Subsoil Permits in Ukraine
A detailed study by YouControl, which leveraged the United States Geological Survey’s 2022 list of 50 critical minerals, shows that Ukraine’s subsoil is managed under 3,482 valid special permits. While many companies possess a single permit, a few, particularly state-owned enterprises, hold multiple licenses. For example:
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JSC Ukrgazvydobuvannya holds 213 permits.
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PJSC Ukrnafta is allocated 89 permits.
These figures highlight the scale and complexity of mineral resource management in Ukraine, making it a critical focal point for both domestic and international investors.
Corporate Groups and Foreign Ownership
The study also uncovered a dynamic network of 502 enterprises connected to 255 corporate groups. Some companies are part of multiple groups, reinforcing the integrated nature of the sector. Key corporate groups with significant stakes in mineral extraction include:
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SKM (39 permits)
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Smart Holding (17 permits)
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Zakhidnadraservice (13 permits)
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Istvan (12 permits)
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ATB (11 permits)
Moreover, 351 companies in the sample have co-owners based in foreign jurisdictions. The ownership structure includes representatives from countries such as Cyprus (137 co-owners), the Netherlands (34), Switzerland (24), the United Kingdom (23), Germany (21), the Czech Republic (16), the United States (14), as well as Turkey, Seychelles, Austria, and Belize. This diverse international involvement underlines the importance of Ukraine as a hub for global mining investments.
Control Over Critical Minerals
An in-depth analysis identified 39 companies with permits to exploit 16 out of 50 critical minerals. Noteworthy findings include:
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State vs. Private Ownership:
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10 out of these 39 companies are state-owned.
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Seven state-owned companies specifically hold permits for extracting germanium, while LLC Demurinsky GOK accesses multiple minerals such as vanadium, niobium, and scandium.
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Corporate Group Dynamics:
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Thirteen corporate groups encompass 22 of the 39 companies, with some groups controlling several entities capable of extracting critical minerals.
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Key Industry Players:
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Gennady Butkevych of the ATB group is linked to several critical mineral ventures, including:
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Development of Pobuzhzhye LLC (graphite)
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Perzhanskaya Rudna Kompaniya LLC (zinc, beryllium)
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Titan-Apatite Group LLC (titanium)
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CFR GROUP LLC (zirconium)
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Butkevych’s partner, Vitaliy Yakymenko of the Yakymenko Family Group, oversees companies with permits for nickel, chrome, and tantalum extraction.
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Sanctioned Business Interests:
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Three companies from Dmitry Firtash’s DF Group have permits for titanium, vanadium, scandium, and zirconium.
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Additionally, companies within the SKM corporate group and those associated with the Smart Holding group (linked to former People’s Deputy Vadym Novinsky) also play prominent roles.
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Unique Mineral Permits:
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Lithium: LLC Ukrlitiivydobuvannya is the sole entity with a permit to extract lithium, steered by Sergey Tabalov of the Tabalov Family Group.
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Graphite: PJSC Zavallivsky Graphite Plant holds a special permit, with significant control by the Australian company Volt Resources Ltd via LLC Graphitinvest.
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Manganese: Extraction rights are granted to LLC Neotechinvest, JSC Marganetssky GOK, and JSC Pokrovsky GOK.
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Opportunities for Foreign Business Integration
Understanding the detailed ownership structure of Ukraine’s subsoil is essential for foreign businesses looking to integrate and invest in the region. The diverse mix of domestic and international stakeholders creates a competitive yet promising environment for those specializing in mineral extraction. As Ukraine continues to modernize its regulatory framework and promote investment, foreign companies have a unique opportunity to collaborate with established local players and benefit from the country’s abundant natural resources.
For businesses aiming to navigate this dynamic sector, staying informed about the latest regulatory changes and ownership trends is crucial. Our website is dedicated to supporting the integration of foreign enterprises into Ukraine’s growing market—providing insights, expert analysis, and up-to-date information on investment opportunities in the mining sector.
