Ukraine possesses significant mineral resources representing approximately 120 types of minerals across more than 20,000 registered deposits. The key mineral resources intensively extracted in Ukraine, and characterised by substantial explored reserves, include natural gas, oil and condensate, uranium, coal, iron ore, manganese, titanium, zirconium, and a wide range of non-metallic minerals, in particular clays, kaolin, quartz sand and graphite. Ukraine holds the largest titanium reserves in Europe, accounting for approximately 7 per cent of global reserves, as well as one of Europe’s largest uranium deposits, while its graphite reserves represent around 20 per cent of global resources. Due to ongoing hostilities, Ukraine has temporarily lost access to approximately 40 per cent of its mineral deposits, as they are located in temporarily occupied territories.

As a civil law jurisdiction, Ukraine’s mining legal framework is primarily governed by the Code of Ukraine on Subsoil (hereinafter referred to as the “Subsoil Code”) No. 132/94-BP dated 27 July 1994. Additional governing legislation includes the Law of Ukraine on Production Sharing Agreements, environmental legislation (including the Law on Environmental Impact Assessment, which implements EU Directive 2011/92/EU), and the Tax Code of Ukraine, which regulates rent payments for the subsoil use. In March 2023, Law No. 2805-IX entered into force, introducing a more transparent and modern system of subsoil use and significantly deregulating the licensing process by eliminating a number of previously required administrative approvals.

All subsoil resources in Ukraine are constitutionally designated as owned by the Ukrainian people. Access to mineral resources is granted through state-issued special permits for subsoil use (hereinafter referred to as the “Special Permits”). As a general rule, Special Permits are granted through electronic auctions for their sale. In certain exceptional cases prescribed by the Subsoil Code, permits may be issued without an auction. For certain strategic and critical mineral deposits, rights may also be granted under production sharing agreements (PSAs).

The national regulator responsible for mining activities in the field of geological exploration and the rational use of mineral resources is the State Service of Geology and Mineral Resources of Ukraine (hereinafter referred to as the “SSGSU”). The SSGSU maintains records of subsoil areas in use, selects areas to be offered at electronic auctions, issues Special Permits, and monitors compliance of permit holders with subsoil legislation. It is also authorised to suspend or terminate subsoil use rights in cases provided by the Subsoil Code.

The rights and interests of international investors in Ukraine are protected, inter alia, through arbitration mechanisms. Ukraine signed the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention) on 29 December 1958 and ratified it on 10 October 1960. Ukraine is a party to the New York Convention with a commercial reservation, meaning that it applies the Convention only to disputes arising out of legal relationships considered commercial under Ukrainian law.

Ukraine possesses deposits of 22 out of the 34 raw materials deemed critical by the European Union. For instance, in 2025, the European Commission granted strategic status to Ukraine’s Balakhivske graphite deposit for the first time. As a lex specialis, Resolution of the Cabinet of Ministers of Ukraine No. 845 dated 14 July 2025 (hereinafter referred to as the “Resolution No. 845”) establishes a comprehensive regulatory framework for strategic and critical minerals. The Resolution introduces a structured “investment map” for prospective subsoil users, clearly defining both the resources available for extraction and the mechanisms for obtaining rights to them. It replaces the earlier, less comprehensive Resolution No. 132 of 14 February 2023.

It aims to ensure the proper implementation of indicators outlined in Section 13, “Management of Critical Raw Materials,” of the Ukraine Plan for the Ukraine Facility.

Moreover, the approval of these lists is a priority for the successful implementation of the agreements defined under the Agreement between the Government of Ukraine and the Government of the United States of America on the Establishment of the American-Ukrainian Reconstruction Investment Fund, ratified by Law of Ukraine No. 4417-IX dated 8 May 2025.

The Resolution No. 845 approves the following:

• the List of Strategic Minerals and Components, which includes 11 minerals;
• the List of Critical Minerals and Components, comprising 28 minerals;
• the list of strategic and/or critical subsoil plots (deposits) to be granted via electronic bidding; and
• the List of Strategic and/or Critical Subsoil Plots (Deposits) to be granted through a tender for a Production Sharing Agreement (PSA).

Ukrainian legislation does not provide for a separate system of direct state financial support for the mining industry in the form of grants or subsidies. However, certain targeted support mechanisms are available.

Under the Law of Ukraine on State Support of Investment Projects with Significant Investments No. 1116-IX dated 17 December 2020, state support may be granted to investors implementing projects with a value of at least EUR 12 million over a period of up to five years, including in sectors such as the processing industry and the extraction of minerals for further processing or beneficiation. Eligible investors may receive state support of up to 30 per cent of the total investment amount.

The most extensive incentives are available under the production sharing agreement (PSA) regime. Ukraine offers a range of statutory and treaty-based investment protections, including stability clauses, tax and regulatory grandfathering, guarantees of currency convertibility and repatriation of funds, and protections under applicable bilateral investment treaties, including the U.S.-Ukraine BIT. At the same time, the PSA regime entails a significant degree of regulatory oversight, including multi-layered approval procedures and ongoing governmental supervision. During the term of a PSA and within the scope of its implementation, the payment of national and local taxes and fees by the investor is generally replaced by the sharing of the produced product between the State and the investor, subject to certain exceptions.

There are no formal restrictions on foreign ownership in the mining sector. Foreign investors can participate in electronic auctions for Special Permits for subsoil use and enter into production sharing agreements (PSAs) on the same basis as domestic investors. At the same time, certain practical and regulatory limitations apply.

Firstly, while most geological information is available, data relating to uranium reserves, remains classified.

In addition, Ukraine is in the process of strengthening its regulatory oversight of foreign investments in strategic sectors. In September 2025, the Cabinet of Ministers submitted draft Law No. 14062 “On Screening of Foreign Direct Investments” to Parliament. If adopted, the law will introduce a screening mechanism for foreign investments in sectors considered critical to national security and the economy, including mining. Transactions that grant significant control, e.g. the purchase of 25% or 50% of the equity, or assets exceeding 10% of a company’s value in these targeted businesses must be screened. The proposed law envisions a new governmental body charged with managing FDI screening and maintaining a registry of foreign investors. The proposed regime establishes review triggers based on governance rights, blocking stakes, asset acquisition thresholds, and would prohibit investments involving persons linked to aggressor states or subject to sanctions.

Secondly, certain sector-specific restrictions also remain relevant for investors. For example, Ukrainian legislation currently imposes a strict moratorium on the acquisition of agricultural land by foreign individuals and legal entities. This restriction extends to indirect ownership, including through Ukrainian companies with foreign shareholders or ultimate beneficial owners. The moratorium may only be lifted by a national referendum, which has not yet taken place and cannot be held under the current state of martial law. Additional limitations apply to agricultural land owned by the state or local communities and to land located within 50 kilometres of Ukraine’s land borders.

Finally, recent bilateral arrangements, including the establishment of the United States-Ukraine Reconstruction Investment Fund, introduce additional compliance obligations for investors. These include enhanced disclosure requirements, obligations to notify authorities of capital-raising activities, and good-faith negotiation requirements with designated partners in relation to financing and off-take arrangements.

From a financial perspective, investors should also consider temporary wartime restrictions. The National Bank of Ukraine (hereinafter referred to as the “NBU”) currently limits cross-border capital transfers in order to maintain macroeconomic stability, which may affect the repatriation of profits.

Dividends may be transferred abroad if accrued from 1 January 2023 (previously from 1 January 2024), while the monthly limit of EUR 1 million remains in place. Since 12 May 2025, the NBU has allowed resident legal entities to transfer foreign currency in amounts corresponding to foreign investments contributed to their charter capital by foreign investors from 12 May 2025 onwards. Within this investment limit, Ukrainian companies are allowed to carry out a number of otherwise restricted foreign currency transactions.

On 13 January 2026, the NBU introduced a new “borrowing limit” mechanism that allows Ukrainian residents to perform certain permitted cross-border transactions in favour of non-residents. The borrowing limit equals the total amount of funds received after 1 January 2026 under a foreign credit or loan agreement in foreign currency, minus the total amount of principal already repaid. Permitted transactions within this limit include dividend repatriation exceeding the established EUR 1 million monthly limit.

Ukraine has implemented export restrictions on certain minerals and metals, primarily through licensing regimes and zero export quotas.

In 2026 zero export quotas apply, inter alia, to:

• natural gas of Ukrainian origin;
• silver (including silver plated with gold or platinum), in unwrought or semi-manufactured forms, or in powder form (excluding banking metals);
• gold (including gold plated with platinum), in unwrought or semi-manufactured forms, or in powder form (excluding banking metals);
• waste or scrap of precious metals or of metals clad with precious metals, as well as other waste or scrap containing precious metals or compounds thereof, used primarily for the recovery of precious metals;
• ferrous waste and scrap, and remelting scrap ingots of iron or steel;
• copper waste and scrap.

The rationale for these restrictions includes supporting domestic metallurgy, increasing tax revenues from domestic processing.

Import tariffs

Ukraine applies import tariffs on minerals and metals as part of its general customs regime. Pursuant to the Customs Code of Ukraine, most customs tariffs are levied at ad valorem rates. Ukraine is a member of the World Trade Organization and applies most favoured nation (MFN) tariff rates to imports from countries without preferential trade agreements.

Under the EU-Ukraine Association Agreement, tariffs on most industrial goods imported from the EU have been eliminated or significantly reduced. Ukraine has also concluded free trade agreements with other jurisdictions which provide for preferential tariff treatment.

Export tariffs

The government has eliminated most export duties. However, the export duty regime for scrap metal remains strictly regulated by domestic legislation. The base export duty on ferrous metal scrap is set at EUR 180 per tonne.

Despite this statutory rate, the export duty regime has faced practical challenges due to international trade obligations. Pursuant to Annex I-C of the Association Agreement between Ukraine and the EU, Ukraine agreed to a transitional phase-out of existing export duties by 2026. This resulted in a zero export duty on scrap metal mentioned adobe.

Ukraine does not, as a general rule, require government or local participation in mining projects, nor does the State automatically take equity stakes in private mining ventures. However, certain mechanisms involve government participation in specific circumstances.

The government acts as a party to all production sharing agreements (PSAs) for certain strategic deposits, including uranium and critical raw materials. PSAs are contractual mechanisms that allow investors to extract minerals in exchange for sharing the extracted resources or revenues with the government.

In addition, Ukrainian legislation introduces certain auxiliary requirements aimed at supporting domestic industry. Pursuant to the Model Agreement on Subsoil Use Terms, which forms a mandatory annex to every Special permit, the subsoil user is required, during the course of operations, to give preference to equipment, machinery, materials and services of domestic origin. This requirement applies to the extent that such goods and services are competitive in terms of price and quality compared to international alternatives, are technically and economically feasible, and do not result in a reduction in production efficiency or environmental safety.

Under Article 13 of the Constitution of Ukraine, land, subsoil, water, air and other natural resources within the territory of Ukraine, as well as those within its continental shelf and exclusive economic zone, are owned by the Ukrainian people. The rights of ownership are exercised on their behalf by state authorities and local self-government bodies.

Mining rights do not grant ownership of mineral resources prior to their extraction. Instead, the right to explore and extract minerals is granted through Special Permits, which constitute the primary legal instrument governing mining activities in Ukraine. Such permits may be issued to legal entities or individual entrepreneurs, including both domestic and foreign investors.

In practice, investors typically operate through Ukrainian legal entities, such as limited liability companies or joint-stock companies, which may be wholly foreign-owned. There is no requirement to enter into joint ventures with local partners.

Ukrainian legislation clearly distinguishes between subsoil use rights and land use rights. Holding a Special Permit does not automatically grant any rights to the underlying land. Accordingly, a permit holder may not commence extraction activities without first obtaining appropriate land use rights, such as freehold or leasehold title, or other valid rights (e.g. an easement) to the relevant land plot.

Where mining activities require the use of state or municipal land, such land plots are typically granted to the holder of the special permit on a leasehold basis. In addition, subsoil users may benefit from a pre-emptive right to acquire agricultural land plots, subject to applicable legal restrictions.

An exception applies to landowners and land users, who may, without a Special Permit extract minerals of local significance and peat for their own domestic needs (without the right of sale), only if extraction does not exceed a depth of two metres.

Any damage to land plots, as well as losses of agricultural or forest land resulting from subsoil use, must be compensated by the permit holder. In addition, land must be restored in accordance with the approved land management and reclamation project within the prescribed timeframes.

Exploration rights in Ukraine are granted in the form of Special Permits for geological study. Each Special Permit defines the subsoil area, the relevant mineral resource, the permitted type of use and its duration. It is accompanied by a subsoil use agreement, which sets out the work programme, environmental obligations and reporting requirements, and provides the regulator with oversight and control rights.

The permit is limited to a defined subsoil area and is subject to an approved work programme agreed with the competent authority. Ukrainian law allows permitting (including pilot-industrial development) subsoil use for a part of a deposit where full-field development is technically impossible or economically unviable, subject to confirmation by the State Commission of Ukraine on Mineral Reserves.

The scope of an exploration permit typically includes the right to conduct geological surveys, drilling, sampling and, in certain cases, pilot industrial development. A special permit is the mandatory legal basis for any such activity.

Exploration permits are typically granted for periods ranging from 3 to 20 years, depending on the type of activity. The term may be extended upon application by the permit holder, subject to compliance with the work programme and applicable procedures, although extensions may not exceed the original duration. Ukrainian law also provides for automatic extension of permit terms during martial law and for a defined period thereafter.

Exploration permits are primarily granted through electronic auctions conducted via the Prozorro.Sale platform. In limited cases defined by law, permits may be granted without auction, including, for example, where geological study with subsequent extraction of minerals of local significance is carried out on land plots not exceeding 25 hectares owned by the applicant.

Exploration rights do not automatically confer extraction rights. A separate special permit is required for mining. However, in certain cases, the holder of an exploration permit may have a preferential right to apply for a mining permit for the same area, subject to compliance with legal requirements.

The timeline for obtaining exploration permits depends on the auction process and regulatory approvals. The cost of permits varies significantly depending on the characteristics of the deposit and auction conditions and may range from several thousand US dollars to over USD 7 million. The full procedure, from announcement to issuance of the permit, generally takes approximately 1 year, particularly where environmental impact assessment and geological studies are required.

Mining rights in Ukraine are granted through Special Permits for commercial extraction of minerals. Such permits provide the right to extract mineral resources within a defined subsoil area and in accordance with the conditions specified in the permit and the subsoil use agreement.

The Subsoil Code establishes a unified system of Special Permits covering different types of subsoil use. In practice, exploration and extraction are typically carried out under separate permits obtained at different stages of project development. The term of mining permits generally ranges from 3 to 20 years, depending on the: (1) type of mineral; and (2) type of use. For oil and gas projects, the maximum term is 20 years onshore and 30 years offshore.

The primary method for acquiring subsoil use rights is through electronic auctions conducted on the Prozorro.Sale platform. The process involves submission and review of an application, publication of the auction, participation through a qualified electronic system, and payment of a guarantee deposit (20 per cent of the starting price). For strategic and critical minerals, there is an alternative route through production sharing agreements (PSAs).

As was mentioned before, permits may be granted without auction, including where the applicant has previously conducted geological exploration and meets statutory criteria. However, such procedures have occasionally been subject to disputes due to differing interpretations by regulatory authorities and prosecutors. For PSA Special Permits also issued without electronic bidding.

Permit holders are required to comply with the approved work programme, ensure rational use of subsoil, and fulfil reporting obligations. They must also comply with environmental and technical requirements, including, where applicable, obtaining environmental impact assessment conclusions and implementing land reclamation measures. Failure to comply with permit conditions may result in suspension or termination of the permit.

Companies engaged in the extraction of mineral resources in Ukraine, regardless of their form of ownership, are subject to rent payment for subsoil use pursuant to the Tax Code of Ukraine.

Rent payment for subsoil use is calculated based on the value of extracted mineral resources, applicable tax rates and adjustment coefficients.

The distribution of rent payments between the state and local budgets is governed by the Budget Code of Ukraine. A portion of rent revenues is allocated to local budgets at different levels based on the location of extraction, with the remaining share transferred to the state budget.

In addition to rent payments, the holder of a special subsoil use permit is required to pay the cost of such permit. Where permits are granted through auctions, the amount is determined by the auction results. In cases where permits are granted without auction, the fee is calculated in accordance with the applicable regulatory methodology.

On the one hand, a notable recent development is the transferability of subsoil permits, which may now be transferred, sold or contributed to a company’s charter capital, including within joint activity arrangements, whereas this was previously prohibited.

Many transfers of mining rights occur indirectly through the sale of shares in the company holding the special permit rather than through direct transfer of the permit itself. This can simplify the transaction structure and avoid the need for regulatory approvals that might apply to direct permit transfers. There is no separate capital gains tax on the transfer of subsoil rights, but such transactions may trigger general tax obligations. However, it should be noted that subsoil permits do not currently qualify as mortgageable assets under Ukrainian law.

On the other hand, transfers of rights under production sharing agreements (PSAs) are subject to approval by the Cabinet of Ministers of Ukraine.

In any way, no transfer is possible to a person who is related to or controlled by an aggressor state, its residents, as well as to persons being under sanctions. This prohibition applies to Russian and Belarusian entities and individuals, as well as any persons subject to Ukrainian or international sanctions.

In 2021, Ukraine adopted a law on indigenous people, recognising that they are an integral part of Ukraine. This law recognises the Crimean Tatars, Karaites, and Krymchaks as indigenous peoples of Ukraine. However, Ukraine is unable to implement this legislation at the moment, primarily due to the ongoing war and Russian occupation of Crimea, where these indigenous peoples historically resided.

The Law of Ukraine “On National Minorities (Communities)” governs the rights of ethnic minorities. Persons belonging to national minorities have the right to participate in elections and referenda, to freely elect and be elected to state and local self-government bodies, have equal access to public service and service in local self-government bodies, and also the right to equal participation in the economic and social life of the country.

Ukraine does not have a separate legal framework for indigenous consultation in the context of mining projects comparable to the Free, Prior, and Informed Consent standards found in other jurisdictions.

However, public consultation is mandatory as part of the environmental impact assessment (EIA) process, which applies to all mining projects. While Ukraine does not formally recognise indigenous land rights akin to those in other jurisdictions, local self-governments and civil society organisations have a significant influence on public perception and project acceptance.

Mining activities in Ukraine are subject to environmental regulation, including the Law of Ukraine “On Environmental Impact Assessment”. Certain categories of mining projects are subject to mandatory environmental impact assessment, including open-pit mining, quarry operations and mineral processing carried out on an area exceeding 25 hectares, as well as peat extraction on an area exceeding 150 hectares.

Such projects require obtaining an environmental impact assessment conclusion prior to implementation. Economic activities involving extraction of mineral resources may not be carried out unless the operator complies with the environmental conditions set out in the EIA conclusion.

The EIA procedure consists of several statutory stages. First, the developer submits a notification of planned activity to the competent authority. This is followed by preparation of an environmental impact assessment report, for which the developer is responsible. The report is subject to public consultation, typically conducted within 25 to 35 working days from its publication. Following public consultations and hearings, the competent authority reviews the documentation and issues a reasoned EIA conclusion within 25 working days. The conclusion may either permit the activity, subject to environmental conditions, or prohibit it.

In practice, the EIA process typically takes from six months to one year, depending on the complexity of the project. The cost of preparing the required documentation and supporting studies may reach approximately UAH 1 million (approximately USD 25,000), although this is not fixed by law.

Ukraine operates an online EIA register, which ensures public access to project documentation, reports and conclusions.

An additional environmental consideration is the Emerald Network, established pursuant to the Bern Convention. This network comprises protected areas designated for the conservation of endangered species and habitats. Although a significant number of such areas have been identified in Ukraine and are reflected in public databases, their legal status under Ukrainian law remains uncertain. The issue cannot be conclusively determined under current Ukrainian legislation, as a dedicated law regulating Emerald Network territories has not been adopted.

Subsoil users are also required to comply with environmental obligations related to mine closure and land reclamation. This includes preparation and implementation of reclamation plans and, in practice, provision of financial resources to cover remediation costs.

Operators must further comply with environmental and technical requirements related to waste management, including classification, storage and monitoring of waste. However, Ukrainian legislation has not fully implemented Directive 2006/21/EC on the management of waste from extractive industries. As a result, certain aspects of mining waste regulation remain fragmented.

The legal framework governing occupational health and safety in mining operations in Ukraine is comprehensive and includes the Labour Code of Ukraine, the Law of Ukraine “On Labour Protection”, as well as sector-specific regulations applicable to mining and high-risk industrial activities. Ukraine has also adopted the Law of Ukraine “On Safety and Health of Employees at Work”, although its implementation remains ongoing.

The State Labour Service of Ukraine is the principal authority responsible for supervision and enforcement in the field of occupational health and safety. It was established by mergering of previously exercised the State Labour Inspectorate and the State Service of Mining Supervision and Industrial Safety.

Mining operations are subject to additional regulatory requirements due to their classification as high-risk activities. In particular, operators must obtain safety permits for the performance of mining-reletated works and for the operation of machinery, equipment and installations of increased danger. This includes, inter alia, equipment used for extraction, transportation, crushing, sorting and processing of mineral resources.

Mandatory social insurance against industrial accidents and occupational diseases forms a core element of the occupational health and safety regime. It ensures compensation to employees for workplace injuries or occupational diseases, funded through employer contributions.

Ukraine does not currently have mandatory climate risk disclosure requirements specifically for mining companies comparable to those found in the EU (CSRD), UK (TCFD-based requirements), or United States (SEC rules). However, Ukraine is in the process of developing its climate governance framework as part of alignment with international standards.

In October 2024, the Ukrainian Parliament adopted the Law on the Basic Principles of State Climate Policy, which establishes the general framework for climate governance in Ukraine and provides for the development of regulatory instruments in this area.

As Ukraine advances towards EU membership, it will need to align with EU climate disclosure standards. This will likely include adoption of standards comparable to the European Sustainability Reporting Standards (ESRS) under the Corporate Sustainability Reporting Directive (CSRD), and potentially adoption or endorsement of the International Sustainability Standards Board (ISSB) IFRS S1 and S2 standards on sustainability and climate-related disclosures.

In practice, companies seeking access to international markets or financing often adopt voluntary disclosure frameworks such as GRI, CDP or ISSB standards.

Ukraine has established a national monitoring, reporting and verification (MRV) system for greenhouse gas emissions. The system has been in place since 2021, was applied on a voluntary basis during the period of martial law, and mandatory reporting has been reinstated as of January 2025, with installations required to report emissions for 2024.

On 29 October 2025, Ukraine approved its second Nationally Determined Contribution under the Paris Agreement. The country aims to reduce greenhouse gas emissions by more than 65 per cent by 2035 compared to 1990 levels. This builds on the 2018 Ukraine 2050 Low Emission Development Strategy, which sets out the pathway to climate neutrality.

Ukraine currently applies a carbon tax on CO₂ emissions from stationary sources, including industrial and extractive activities. However, the rate remains very low at approximately UAH 30 per tonne (around USD 0.7), making it one of the lowest in Europe. In the mining sector, it functions primarily as a compliance mechanism rather than a significant economic driver of decarbonisation, with limited scope covering only certain emitters.

In addition, Ukrainian exporters are indirectly affected by the EU Carbon Border Adjustment Mechanism (CBAM), which requires EU importers to report and, from 2026, pay for embedded emissions in certain goods.

On 4 November 2025, the European Commission released its Report within the 2025 EU Enlargement Package, assessing Ukraine’s progress in climate and environmental alignment. The Report notes gradual approximation to the EU acquis, alongside persistent gaps in implementation, administrative capacity and financing.

A key development is the adoption of the Law “On Integrated Prevention and Control of Industrial Pollution”, which elevates harmonisation with EU law to a fundamentally new level by transposing core elements of Directive 2010/75/EU (IED). This is particularly relevant given the 2024 revision of the IED under the European Green Deal. The updated directive explicitly integrates industrial decarbonisation, requires climate compatibility of BAT, introduces mandatory transformation plans for installations for 2030-2050 (to be prepared by 30 June 2030), and obliges competent authorities to set the strictest achievable emission limits.

The Ukrainian law covers major industrial sectors, including metallurgy, mineral processing and chemical production, based on capacity thresholds broadly aligned with Annex I of the IED. At the same time, full alignment requires adoption of secondary legislation and further adjustments to reflect evolving EU targets (Fit for 55, zero pollution).

According to the Commission, industrial pollution legislation remains only partially aligned and effective implementation is still pending.

Mining companies in Ukraine are subject to the general tax regime, in addition to the subsoil use rent (royalty). No specific “unusual” taxes apply exclusively to the mining sector.

Corporate income tax is levied at a standard rate of 18 per cent on taxable profits. Subsoil use rent is deductible for corporate income tax purposes. Higher sector-specific rates introduced for financial institutions do not apply to mining companies.

Value added tax (VAT) applies at the standard rate of 20 per cent to the supply of goods and services. Mining operations generally do not benefit from reduced VAT rates, although certain temporary exemptions may apply during martial law, particularly for imports.

Payroll taxation includes personal income tax at 18 per cent, a military levy, and a unified social contribution at a standard rate of 22 per cent paid by employers. Employers are responsible for withholding and remitting these amounts.

Property tax applies to real estate owned by mining companies, with rates determined by local authorities within statutory caps linked to the minimum wage.

Land tax (land rent) is also payable by land users, based on the normative monetary valuation and land classification.

In late November 2025, two draft laws were registered to update the legislative framework for subsoil use. Draft Law No. 14249 introduces several investor-focused changes. It provides for the automatic extension of Special Permits for the duration of martial law and an additional 24 months thereafter, significantly exceeding the current grace periods. Importantly, it also proposes a new Article 25-1 to the Subsoil Code, establishing stability guarantees for investors in strategic and critical mineral projects, including protection against adverse legislative changes.

Draft Law No. 14250 proposes to grant the permitting authority the power to include, within auction documentation, detailed geospatial information on environmental protection areas, cultural heritage sites, and their buffer zones. This is intended to ensure compliance with environmental and cultural protection requirements and to support more sustainable and transparent subsoil use.

At the strategic level, Ukraine is advancing its critical raw materials policy, positioning itself as a reliable supplier of lithium, rare earth elements and titanium to Western markets. This is supported by renewed activity in production sharing agreements. In April 2025, the government approved PSA tenders for the Svichanska and Mezhyhirska fields, marking the first such projects since the start of the full-scale war. On 12 January 2026, the winner of the PSA tender for the Dobra lithium deposit was selected.

In parallel, Ukraine is preparing a new Customs Code aligned with EU standards, expected to be adopted in 2026 as part of its broader EU integration process.