In 2024, the contribution of the extractive industry to Ukraine's GDP amounted to UAH 307.17 billion. It increased by 8.35% compared to 2023 but did not reach the value before the full-scale invasion – UAH 351.19 billion in 2021. Moreover, the share of the extractive industry in Ukraine's GDP fell compared to 2023 to 4.01%. The decrease is likely due to an increase in Ukraine's GDP in actual prices by 15.6% (UAH 7,658.66 billion in 2023).

The State Statistics Service published only aggregated data on the contribution of individual extractive industries to the GDP by type of economic activity. Therefore, the EITI Report for 2024 presents aggregate data on the contribution of extractive industries to Ukraine's GDP.

In 2023, the contribution of the extractive industry to Ukraine's GDP amounted to UAH 262.56 billion and increased by 14.2% compared to 2022, however did not reach the level before the full-scale russian invasion (UAH 351.19 billion in 2021). Moreover, the share of the extractive industry in Ukraine's GDP decreased compared to 2022 to 4.02%. The drop is most likely due to the increase in Ukraine's GDP in effective prices by 24.8% (UAH 6,537.83 billion – 2023).

The data on the contribution of individual extractive industries to GDP are published by the State Statistics Service only in aggregate form by type of economic activity. Therefore, the EITI Report 2023 presents the aggregate data on the contribution of extractive industries to Ukraine's GDP.

The direct contribution of this industry to the GDP of Ukraine in 2022 was 5.69%. The full-scale invasion of Russian troops on the territory of Ukraine significantly affected the activities of Ukrainian enterprises, which led to a drop in the nominal GDP of Ukraine by UAH 259.82 billion (by 4.77%) compared to the previous reporting period. Thus, in 2022, a negative growth rate of the GDP of extractive industries was observed by 15.83%, with a corresponding decrease in the GDP indicator by UAH 55.6 billion in monetary terms. Data on the GDP of individual extractive industries by types of economic activity are published by the State Statistics Service only in an aggregated form.

In 2021 the total GDP of Ukraine amounted to UAH 5,459.57 billion, and the share of the "Mining Industry and Quarry Development" sector in the total GDP of Ukraine reached 6.67%.

The contribution of extractive industries to GDP in 2021 is noticeable increased from 4.57% in 2020 and is the highest in the last 9 years. In monetary terms, the direct contribution of extractive industries to GDP in 2021 equaled 364.20 billion UAH, and in the previous year 2020 - 193.12 billion UAH. The actual GDP growth of the "Mining industry and quarry development" sector was 88.59%, while the growth rate of the total GDP of Ukraine in 2021 was much slower and reached 29.31%.

Direct contribution of all extractive industries of Ukraine to its GDP in 2020 amounted to UAH 190.34 billion, or 4.54% of the GDP. Compared to 2019, the gross value added of extractive industries decreased by UAH 32.01 billion, or 14.4%.

As of the time of preparation of this EITI Report 2020, the detailed annual information on output and GDP by individual extractive industries has not yet been published by the State Statistics Service. Therefore, this report provides only aggregate information on the output of all extractive industries together and their aggregated contribution to the GDP. According to the State Statistics Service official information publication calendar for 2021, the detailed data on output and GDP for 2020 will be only published by the State Statistics Service on December 30, 2021.

The gross value added generated by the extractive industries in 2019 amounted to UAH 222.37 billion which made a direct contribution to Ukrainian GDP of 5.59%. Despite the fact that the gross value added generated by the extractive industries in monetary terms continued to grow and increased from UAH 214.26 billion in 2018 to UAH 222.37 billion in 2019, the share of extractive industries in Ukrainian GDP decreased compared to 6.01 % in 2018. The trend is due to the fact that Ukrainian economy as a whole grew faster than the extractive industries: Ukrainian GDP in 2019 grew by 11.63% from the previous year, and gross value added of extractive industries – only by 3.78%.

As of the time of preparation of this EITI Report for 2019, the State Statistics Service has not yet published annual detailed data on national output and GDP by type of economic activity. According to the official calendar of information disclosure for 2020, the State Statistics Service will publish output in the GDP for 2019 not before December 30, 2020. In view of this, the report presents only the total contribution of all extractive industries to Ukrainian GDP without detailing by sector.

The value of production of extractive industries (the output value) in 2018 amounted to UAH 490.11 billion. Their direct contribution to the output of products and services in Ukraine amounted to 5.51%, including 1.84% of output in the economy that was generated by the crude oil and natural gas extractive industry and 1.28% generated by the coal and lignite mining industry. Due to the fact that publicly available statistical information of the State Statistics Service does not allow disaggregating data on the output of each separate branch of mining of metals, clays, sand and building stones, only the estimate of their total contribution to the output in Ukraine is possible, which is 2.39 %.

In 2018, the extractive industries generated UAH 214.26 billion in gross value added, which is 6.02% of Ukraine's nominal GDP. The largest contribution to GDP was made by the crude oil and natural gas extractive industry (2.79%). The gross value added indicator outlines the value of the final product of the industry without intermediate consumption, and thus shows how efficient the industry is in terms of generating net value added in the economy. The share of the crude oil and natural gas extracting in Ukraine's GDP is one and a half times higher than its share in the output. So, the oil and gas extractive industry is the most efficient one among other extractive industries.

In 2024 the value of exported products of the extractive industry amounted to USD 3,086 million in 2024 and increased by 46.21% compared to 2023. The share of minerals in the total exports of goods in 2024 was 7.39%, which is 1.59 percentage points more than in 2023.

Highest export value is observed for iron ores (agglomerated and non-agglomerated), fire clays, titanium ores, coal and oil. It should be noted that the export value of the 6 groups of commodities mentioned earlier increased by USD 956.59 million (45.5%) compared to 2023.

In the above group of commodities, non-agglomerated and agglomerated iron ores made the largest contribution to the exports – 3.7% and 3.0%, respectively. The contribution of other commodities does not exceed 0.3%.

In 2024, the value of exports of sand (quartz and silica sand) and construction stones amounted to USD 0.48 million and USD 19.68 million, respectively, accounting for 0.001% and 0.05%, respectively, of the value of exports of commodities. The value of exports of construction stones increased in 2024 compared to 2023 by 153.13%, however it did not reach the level before the full-scale invasion – USD 28.58 million (0.04% of total exports of commodities) in 2021. The value of exports of sand (quartz and silica sand) increased by 64% in 2024 compared to 2023. The value of exports of manganese ores amounted to USD 6.56 million in 2024, while in 2023 there were no exports of manganese ores. Due to the introduction of a zero export quota for natural gas of Ukrainian origin in 2024, no exports of natural gas were carried out.

In 2023, the value of the exported extractive industry products amounted to USD 2,110.61 million and decreased by 39.2% compared to 2022. The share of minerals in the total exports of goods in 2023 was 5.8%, which is 2.0 percentage points less compared to 2022.

Iron ore, high-melting clay, oil, titanium ore and coal have the highest export value. However, the export value of the six above mentioned groups of goods decreased by USD 1,315.59 million (38.5%) compared to 2022.

In this group of commodities, non-agglomerated and agglomerated iron ores are the largest contributors to the exports of goods (2.7% and 2.2%, respectively). The contribution of other commodities does not exceed 0.5%.

In 2023, the value of exports of sand (quartz and silica) and construction stones amounted to USD 0.29 million and USD 7.78 million, respectively, or 0.001% and 0.02%, respectively, of the value of exports of goods. The value of exports of construction stones increased in 2023 compared to 2022 by 34.5% however did not reach the level before the full-scale russian invasion – USD 28.58 million (0.04% of total exports of goods) in 2021. The value of exports of sand (quartz and silica) demonstrated a downward trend during 2021 - 2023 (USD 5.67 million in 2021, USD 0.98 million in 2022). Manganese ores and natural gas were not exported in 2023. The value of manganese ore exports did not exceed USD 0.09 million during 2021-2023. The value of natural gas exports was USD 47.04 million in 2021, USD 44.73 million in 2022. There was no natural gas exports in 2023 due to the introduction of a zero quota for the export of natural gas of Ukrainian origin.

Due to the lack of public data from the State Statistics Service regarding Ukraine's foreign trade in mining products in 2022, in this report the Independent Administrator used data provided by the State Customs Service in response to a request. Therefore, some categories of extractive industries may differ from those described in similar sections in previous EIA Reports. Thus, the dynamics of indicator changes are not presented in this section.

The total value of export of products of extractive industries, according to the data of the Ministry of Internal Affairs, in 2022 amounted to 3,473.57 million dollars. USA, which is 7.86% of the total value of exports of goods and services of Ukraine. The largest export volumes (2,912.97 million US dollars) were in the field of iron ores and concentrates, the export value of which is 6.59% of the total value of exported goods and services of Ukraine. Coal and anthracite (0.49%), titanium ores (0.29%) also account for a significant share of export value. Instead, no exports of manganese ores and concentrates were observed in 2022.

Information for some categories of UKTZED in this section may cover broader categories of industries than those provided for in the context part of the 2022 EIA Report. This is explained by the DMS approach to data collection and accounting.

In 2021 the total value of goods and services exported from Ukraine amounted to 79,326.10 million dollars. USA, and the share of production of extractive industries in it increased to 5.63% (4.94% - in 2020). The value of exports of extractive industries in 2021 reached 4,468.75 million dollars. of the USA, which is 52.33% more compared to 2,933.56 million dollars. USA in the previous year.

The most significant of all mining industries remains the export value of non-agglomerated iron ores, which amounted to 4.94% of all exports of goods and services from Ukraine in 2021. It was due to the increase in the value of iron ore exports (by 54.11% compared to 2020) that the total contribution of the mining industries to the export of goods and services from Ukraine increased. Also, a significant increase (by 51.98% compared to 2020) is observed for the export value of refractory clays. At the same time, the export of manganese ores decreased significantly (by 99.18% compared to 2020).

The export value of extractive industries in 2020 was 2,993.56 million dollars. USA, which is 33.96% more than last year.

In 2020, the share of exports of extractive industries in the value of total exports of Ukraine increased to 5.96% compared to 3.42% in 2019. This is due primarily to the increase in the value of the exported volume of non-agglomerated iron ores by 43.28% compared to 2019. In 2020, the contribution of non-agglomerated iron ores to the export volume of Ukraine amounted to 5.17%, which exceeds the contribution of other mining industries combined.

The contribution of extractive industries to the export of goods and services from Ukraine increased to 3.42% in 2019 from 2.93% in 2018. In particular, the export (in monetary terms) of non-agglomerated iron ores increased significantly: from USD 1,257.96 million. USA in 2018 to 1,774.26 million dollars. USA in 2019. The export of iron ores generated 2.77% of the value of all exports of goods and services from Ukraine in 2019. Other industries made a relatively smaller contribution to exports: mining of refractory clays - 0.34%, titanium ores - 0.24%, production of pebbles, gravel, crushed stone - 0.06% and others. Natural gas was not exported from Ukraine in 2019.

The contribution of extractive industries to exports in 2018 was 2.93% of the total export of goods and services from Ukraine. The extractive industries shown in the chart below collectively exported products worth $1,679.85 million. USA. Among them, the export of iron ores (non-agglomerated) is in the first place in terms of export volume: iron ores worth 1,257.96 million dollars were exported. USA, which was 2.20% of the total export of goods and services from Ukraine. The contribution of all other extractive industries to exports was comparatively insignificant.

Natural gas and crude oil were not exported in 2018.

According to data received from the state authorities, the share of the contribution of material reporting industries to the revenues of the Consolidated Budget of Ukraine and the total unified social contribution amounted to 4.71% in 2024, which is UAH 172,238,074.24 thousand. Oil and natural gas extraction is the leader among the extractive industries – it generated the largest contribution of 3.51%.

According to data from state authorities, in 2023, the share of contribution of the reporting extractive industries to the revenues to the Consolidated Budget of Ukraine and the total volume of the single social contribution amounted to 4.79%, which is UAH 150,754,831.94 thousand. Oil and Natural Gas Extraction industry generated the largest contribution among the extractive industries, namely 3.83%.

According to the data of the state authorities, in 2022, the share of the contribution of accountable extractive industries in the revenues of the Consolidated Budget of Ukraine and the total amount of the single social contribution amounted to 11%, which is 188,422,642.59 thousand UAH. The largest contribution among the extractive industries, namely 7.98% was accumulated by the industry "Extraction of oil and natural gas". Compared to 2021, there was a negative increase in the volume of tax and non-tax payments by 13.03%, mainly due to a decrease in the share of revenues from the "Iron ore extraction" industry by UAH 30,126,702.37 thousand (-61.82%).

According to the data of state bodies (DPS, DMS, Derzhgeonadra), in 2021 the total amount of payments of accountable extractive industries to the state reached 216,642,527.55 thousand UAH. The share of these payments in all tax and non-tax revenues of the Consolidated Budget of Ukraine and the total volume of revenues of the EUS amounted to 10.80% in 2021.

The volume of tax and other payments from accountable extractive industries for the benefit of the state in 2021 increased by 16.06%, compared to 2020 (186,658,453.51 thousand UAH). The majority of revenues, namely 62.06%, was accumulated by the oil and natural gas extraction industry. However, the largest increase in payments was observed precisely from iron ore mining enterprises - more than 5 times, from UAH 9,439,908.01 thousand in 2020 to UAH 48,733,122.77 thousand.

According to the data of the state bodies (DPS, SMS, Ministry of Economy, State Geodesy), the total amount of payments of accountable extractive industries to the state in 2020 amounted to UAH 186,658,453.51 thousand, which is 12.89% more than in 2019. A significant share of payments in favor of the state from accountable extractive industries, namely 80.01%, fell on the oil and natural gas extraction industry.

In 2020, the share of payments from accountable extractive industries in all tax and non-tax revenues of the Consolidated Budget of Ukraine and the total volume of revenues of the State Budget was 11.21%. Of them, the share of the oil and natural gas extraction industry was 8.97%.

In 2019, the volume of revenues for the benefit of the state from companies in the accountable mining industries, according to the data of state bodies (DPS, LMS, Ministry of Economy, State Geological Survey), amounted to UAH 165,350,870.54 thousand. The largest contribution in payments for the benefit of the state among the extractive industries falls on the industry of oil and natural gas extraction - UAH 131,378,111.59 thousand. In general, the share of payments of the accountable extractive industries in tax and non-tax revenues of the Consolidated Budget of Ukraine and the total amount of revenues of the EUS was 10.62%

In 2018, the volume of revenues for the benefit of the state from companies in the accountable extractive industries, according to the data of state bodies (DPS, LMS, Ministry of Economy, State Geodesy), amounted to UAH 187,938,735.57 thousand. The largest contribution to payments for the benefit of the state among the extractive industries is the oil and natural gas extraction industry - UAH 151,109,249.38 thousand. The specific weight of payments of the accountable extractive industries in tax and non-tax revenues of the Consolidated Budget of Ukraine and the total amount of revenues of the EES amounted to 13.36%

In 2024, the share of capital investments in the extractive industry and quarry development accounted for UAH 63,570.12 million or 8.56% of the total capital investments in all Ukrainian sectors, with the largest share of investments in the extraction of crude oil and natural gas (5.49%). Compared to 2023, the volume of capital investments in the extractive industry remained almost unchanged – it decreased by UAH 119.9 million from UAH 63,689.01 million in 2023.

The results of the reporting period demonstrate that the largest volumes of capital investments are in three extractive industries: Extraction of crude oil and natural gas – 64.18%, Extraction of hard and brown coal – 15.43%, and Extraction of iron ores –14.44%.

In 2023, the State Statistics Service recorded an increase in the total volume of capital investments in Ukraine by 53.12%. In 2023, the extractive industry and quarry development attracted UAH 63,689.01 million of capital investments, which is 10.15% of the total volume of capital investments of all industries in Ukraine in the reporting period. The largest share was investments in the extraction of crude oil and natural gas (6.31%). Compared to 2022, the volume of capital investments in the extractive industry increased by 50%. However, it should be noted that the increase is the result of a low base line – UAH 25,396.42 million in 2022. Anyway, the indicator for 2023 exceeded the level before the full-scale invasion – UAH 61,307.91 million in 2021.

According to the results of the reporting period, the largest volumes of capital investments were generated in three extractive industries: Crude Oil and Natural Gas Extraction (62.31%), Hard and Brown Coal Extraction (18.02%), and Iron Ore Extraction (14.16%).

In 2022, according to the data of the State Statistics Service, a decline in the total volume of capital investments in Ukraine by 39.21% was recorded. Accordingly, compared to the previous reporting period, there was a decrease in the volume of capital investments in all mining industries. In particular, capital investments in the amount of UAH 25,396.42 million (6.20% of all industries in Ukraine) were attracted to the extractive industry and quarry development, which is 58.6% less compared to 2021. In 2021, the indicator was UAH 61,307.91 million.

According to the results of the reporting period, the largest volumes of capital investments fell on three mining industries: 39.28% - on the "Iron ore mining" industry, 27.49% - on "Stone and lignite mining" and 23.63% - on "Extraction of crude oil and natural gas".

In 2022, the industry "Extractive industry and development of pits" remains the leading industry in terms of the volume of directed capital investment. In 2022, this industry accounted for 20.14% of all capital investments of industries in Ukraine. In terms of regions of Ukraine, the largest share of capital investments in the extractive industries was recorded in the Dnipropetrovsk region - 31.64%, in the city of Kyiv - 23.01%, and in the Poltava region - 22.80%. In general, capital investments in extractive industries among other types of industry in 2022 prevailed in Donetsk and Poltava regions, and amounted to 89.8% and 70.6%, respectively.

The volume of capital investments of such type of economic activity as "Mining Industry and Quarry Development" amounted to UAH 55,616.8 million in 2021. They make up 10.52% of the total volume of capital investments made in the economy of Ukraine.

Of all the extractive industries, the largest contribution to capital investments falls on the industry of iron ore extraction (4.74% of all capital investments in Ukraine or UAH 25,066.15 million) and extraction of natural gas and crude oil (3.58% of all capital investments in Ukraine or UAH 18,951.69 million).

Of all sectors of the extractive industry, almost half, namely 45.07% of capital investments fell on the sector of iron ore extraction, 34.08% - on the sector of natural gas and crude oil extraction. In third place behind them is the mining of hard and brown coal with a share of 13.40% of the total volume of capital investments in all mining industries in 2021.

By regional distribution, significant capital investments made in mining industries were attracted in Dnipropetrovsk (32.47% of all capital investments investments in extractive industries), Poltava (18.25%) oblasts and the city of Kyiv (33.55%).

In 2020, the volume of capital investments in the extractive industries amounted to UAH 44,755.57 million or 10.66% of the total volume of capital investments of Ukraine. Among them, 42.96% fell to the industry of iron ore extraction, 33.87% - to the industry of natural gas extraction, 14.33% - to the industry of stone and lignite extraction.

Significant amounts of capital investments in 2020 were attracted in the following regions: Kyiv - 35.92% of the total investments of extractive industries or UAH 16,075.63 million, Dnipropetrovsk region - 32.53% or UAH 14,558.36 million, Poltava region - 15.79% or UAH 7,066.61 million. Compared to the previous year, the share of the city of Kyiv decreased (in 2019 – 48.22%), but the share of Dnipropetrovsk and Poltava regions increased (in 2019 – 27.75% and 11.47%, respectively). It is worth noting that capital investments in extractive industries accounted for 71.79% of all capital investments in Poltava Oblast and 51.11% in Dnipropetrovsk Oblast.

Capital investments in extractive industries accounted for 10.98% of all capital investments in Ukraine in 2019 (9.33% in 2018). The largest volume of capital investments was attracted in the field of natural gas extraction, iron ore extraction, and stone and lignite mining: the contribution of these industries to capital investments in Ukraine was 5.18%, 3.45%, and 1.34%, respectively.

Traditionally, the largest share of capital investments in of extractive industries fell to the city of Kyiv - 48.22% of all capital investments in extractive industries, and to the Dnipropetrovsk region - 27.75%. In Poltava region, in 2019, capital investments were attracted significantly more than in 2018, accordingly, it accounted for 11.47% of the total volume of capital investments in extractive industries in 2019, and, in comparison, last year - 7.96%. The share of Donetsk region in 2019 was 7.56%.

Mining industries in 2018 attracted UAH 53,984.58 million in capital investments, which accounted for 9.33% of the total capital investments of all sectors of the Ukrainian economy. Among them, the natural gas extraction industry (4.38%) and iron ore mining industry (2.54%) made the largest contribution to attracting investments for capital projects.

Of the total volume of capital investments in all mining industries, almost half, namely 48.85%, was attracted in the city of Kyiv 27.30% - in Dnipropetrovsk region, 9.17% - in Donetsk region, 7.96% - in Poltava region, the rest in other regions of Ukraine.

Before the full-scale russian invasion of Ukraine, the EITI Reports provided data on the average number of full-time employees (including by gender) in the extractive industries, obtained from the State Statistics Service in response to a request from the Independent Administrator. Obtaining the specified data for 2024 turned out to be impossible in accordance with the Law of Ukraine “On Protection of the Interests of Subjects of Reporting and Other Documents during the Period of Martial Law or a State of War”, since individuals, individual entrepreneurs, legal entities have the right not to submit statistical reporting during martial law. That is why the state statistics bodies were unable to generate objective statistical information.

According to the reports actually submitted by the enterprises and the reassessments of the State Statistics Service indicators, the number of employees employed by economic entities in the extractive industry and quarry development amounted to 138 thousand people, or 1.83% of the total number of employed people in Ukraine. Also, 40 thousand people worked in the metal ore mining industry, of which 28 thousand people were in the iron ore mining industry. 39 thousand people worked for business entities in the crude oil and natural gas mining industry, which is 0.51% of the employees employed by business entities in Ukraine. 16 thousand people worked in the stone, sand and clay mining industry (0.21% of the total employees in Ukraine). The information will be clarified after the statistical data are updated.

Before the full-scale russian invasion, the EITI Reports provided data on the average number of full-time employees (including by gender) in the extractive industries, obtained from the State Statistics Service in response to a request from the Independent Administrator. Obtaining the specified data for 2023 turned out to be impossible due to the Law of Ukraine “On Protection of the Interests of Subjects of Reporting and Other Documents during the Period of Martial Law or a State of War”, since individuals, individual entrepreneurs, and legal entities have the right not to submit statistical reports during martial law. This made it impossible for state statistics bodies to form objective statistical information.

According to the reports submitted by the enterprises and the reassessments of the indicators calculated by the State Statistics Service, the number of employees in the extractive industry and quarry development business entities was 147 thousand people, which is 1.95% of the total number of employees in Ukraine. Of them, 44 thousand people were employed in the metal ores mining industry, including 31 thousand people – in the iron ore mining industry. 38 thousand people worked in the crude oil and natural gas extractive business entities, which is 0.50% of the employees of business entities in Ukraine. 17 thousand people were employed in the stone, sand and clay mining industry (0.22% of the employees of Ukraine).

In previous EITI Reports, data on the average accounting number of full-time employees (including distribution by gender) in extractive industries, received from the State Statistics Service in response to a request by the Independent Administrator, were provided. Obtaining the specified data for the year 2022 turned out to be impossible in accordance with the Law of Ukraine "On the Protection of the Interests of Subjects of Reporting and Other Documents during the Period of Martial Law or State of War", since natural persons, natural persons-entrepreneurs, and legal entities during martial law have the right not to submit statistical reports. This made it impossible for the state statistics authorities to form objective statistical information.

Thus, the state statistics authorities suspended the publication of statistical information, including the average registered number of full-time employees in total and by gender, during the period of martial law and within three months after its end. In connection with the above information, it is inappropriate to compare the data presented in this section with the data of previous EIA Reports.

In 2021, the average registered number of full-time workers in the extractive industries amounted to 184,000 people, which is 1.29% less than in the previous year. At the same time, the total number of full-time employees in Ukraine decreased even more - by 3.39%. The share of extractive industries in the total number of full-time employees in Ukraine remained almost at the same level - 2.59% in 2021 compared to 2.54% in 2020.

Of all the extractive industries, metal ore and hard coal mining traditionally have the most full-time employees - 63 and 62 thousand full-time employees, respectively. in 2021.

In 2021, men predominated in the gender structure of full-time workers in the mining industry, as in previous periods. So, in 2021, out of 184,000 full-time workers in the mining industry, 137,000 (74.46%) were men, and 47,000 (25.54%) were women. Similar to extractive industries, the entire industrial sector is significantly dominated by men in the structure of full-time employees - in 2021, their share was 62.66%. In general, in the entire economy of Ukraine, among the average registered number of full-time employees, on the contrary, women prevailed in 2021 - their share was 53.48%.

However, the share of women in extractive industries is gradually increasing. Thus, their share among full-time employees in 2018 was 24.75% and gradually increased to 25.54% in 2021.

According to the reports actually submitted by the enterprises and the reassessments of the State Statistics Service indicators, the number of employees employed by economic entities of the extractive industry and quarry development amounted to 169 thousand people, which is 2.23% of this indicator in Ukraine as a whole. On the other hand, 55,000 people worked in the field of metal ore mining, including 38,000 people in the iron ore mining industry. 39,000 people worked in economic entities in the field of crude oil and natural gas extraction, which is 0.51% of the employees of Ukrainian economic entities.

20,000 people (0.26% of Ukrainian employees) worked in the field of stone, sand and clay extraction, and about 6,000 people were involved in the economic activity of providing auxiliary services in the field of extractive industry and quarry development. employees (0.09%).

In 2020, the average registered number of full-time employees in extractive industries decreased by 4.90% compared to the previous year and amounted to 186,400 people. In general, 2.54% of the average registered number of full-time employees of Ukraine in 2020 were employed in extractive industries. Of them, 0.92% (67.4 thousand people) work in the field of coal and brown coal mining, 0.82% (59.9 thousand people) work in the field of metal ores.

As in previous years, the majority of workers in all mining industries, namely 74.68%, were male workers. On the other hand, the share of women was 25.32%. A similar trend was observed in all mining industries.

During 2016-2019, the average registered number of full-time employees in extractive industries decreased annually by an average of 5.63% and amounted to 196 thousand people in 2019. The direct contribution of extractive industries to the total average accounting number of full-time employees in Ukraine was 2.63% in 2019. Among all types of economic activity related to the mining industry, the largest number of full-time employees was employed in the mining of hard and brown coal - 72 thousand people or 0.97% of the total number of full-time employees in Ukraine. In second place was the metal ore mining industry - 65,000 people or 0.88% of the total figure in Ukraine

In 2018, the average registered number of full-time employees in the extractive industries was 202,000 people, which was 10.91% of all full-time employees in industry as a whole and 2.64% of all full-time employees in Ukraine. More than half of all workers in the extractive industries are employed at enterprises in Dnipropetrovsk (34.54%) and Donetsk regions

Procurement rules and practices of state-owned companies.

The EITI Standard requires the MSG to determine materiality and disclose the beneficial owners of contractors. The determination of materiality is necessary for the disclosure of beneficial ownership in accordance with Requirement 2.6(e).

The Law of Ukraine “On Public Procurement” establishes the foundations of state policy in the field of procurement and contains specific rules governing the procurement activities of state-owned companies.

There are rules under which procurement must be carried out through the electronic procurement system if the value of the procurement exceeds the materiality threshold.

The laws and regulations governing public procurement do not apply to the procurement of goods, works and services under production sharing agreements.

There is legal uncertainty as to whether public procurement regulations apply to companies whose corporate rights have been seized and transferred to the management of another state-owned companies.

Special rules for public procurement during martial law have been established. These rules provide, inter alia, for the possibility of not publishing in the electronic procurement system a report on a procurement contract concluded without the use of the electronic procurement system in certain cases.

*Prozorro is the main electronic public procurement system in Ukraine, which provides open and transparent access to tender documentation, contracts and procurement results of state-owned enterprises.

The volume of the shadow economy in Ukraine is estimated by the Ministry of Economy on a quarterly basis. The results of the assessment were generally made publicly available on the official website of the Ministry.

Since 2022, the Ministry of Economy has suspended the publication of the results of these assessments.

At the time of preparation of the EITI Report 2023 and the EITI Report 2024, information on the overall trends of the shadow economy in Ukraine was not available.

For the year 2022, open sources provide information on the size of the shadow economy in the extractive industries of Ukraine according to a study conducted by the Ministry of Economy of Ukraine and data published by the State Statistics Service of Ukraine.

According to the data of the Ministry of Economy, received in response to the request of the Independent Administrator, the level of the shadow economy in 2022 was 30% according to the monetary and electric method, which is 2% less and 3% more than in 2021, respectively. According to the loss-making method of enterprises, this indicator is 31%, which is as much as 8% more than in 2021.

According to the State Statistics Service on the net profit (loss) of enterprises in 2022, 54.9% of enterprises in the extractive industry suffered losses, which is 14.8% more than the similar figure in 2021 (40.1%). The largest share of unprofitable enterprises in 2022 was observed in the field of mining of non-ferrous metal ores (81.3%), mining of ores of other non-ferrous metals (80%), as well as in the field of metal ore mining (68.6%), crude oil mining (60.5%).

To estimate the share of the shadow sector in certain branches of the economy of Ukraine, the Ministry of Economy uses the method of unprofitability of enterprises. In 2022, the level of the shadow economy increased by 15% compared to the previous year and amounted to 48%. Significant growth was also observed in the field of real estate transactions (by 13%), financial and insurance activities (11%), processing industry (11%). However, the highest level of the shadow economy is still observed in the mining industry.

The State Statistics Service of Ukraine regularly publishes information on the number of informally employed population by type of economic activity. However, the specified information for 2022 at the time of preparation of this Report is not available in accordance with the Law of Ukraine "On the Protection of the Interests of the Subjects of Reporting and Other Documents During the Period of Martial Law or State of War". The publication of statistical information on the informal employment of the population will be resumed after the end of the legally established term for the submission of statistical reports by economic entities and taking into account the time required by the state statistical authorities to generate statistical information.

According to the available data of the Ministry of Economy, the level of the shadow economy in extractive industries at the end of 2021 was 32% of the volume of gross added value of these industries. This is a significantly lower figure compared to 2020, when the level of the shadow economy in extractive industries was estimated at 41%.

According to the State Statistics Service, in 2021 the number of informally employed people in Ukraine aged 15-70 was 3,018.40 thousand people, which is equal to 19.34% of the employed population of the country. The State Statistics Service does not disaggregate data on the informally employed population in sufficient detail to obtain an indicator separately for extractive industries. However, the State Statistics Service publishes an indicator for industry as a whole - in 2021, the share of informally employed was 7.57% of the total number of workers in industry. The level of the informally employed population in industry in 2021 slightly decreased compared to a similar indicator (7.69%) in 2020.

According to the data of the Ministry of Economy, the level of the shadow economy in extractive industries in 2020 was 41%, in 2019 - 26%, and in 2018 - 29% of the gross added value of these industries.

It is worth noting that the study of the Ministry of Economy in 2020 was carried out using the improved Methodological recommendations approved by the order of the Ministry of Economy dated 20.01.2021 No. 104, according to which the concept of the shadow economy is as follows:
The shadow economy is the economic activity of a business entity that is not registered in the established order, the results of which participate in creation of gross national income, but are not fully covered by official statistics and, as a result, avoid tax obligations to the state, are characterized by a violation of legally established norms.

In 2019 and 2018, the concept of the shadow economy meant: economy - unregistered economic activity of a business entity, which is characterized by minimization of costs for the production of goods, performance of work and provision of services, evasion of taxes, fees (mandatory payments), statistical questionnaires and submission of statistical reports, the consequence of which is a violation of legally established norms (minimum wage level, duration of working hours, working conditions and safety, etc.)

According to the Order of the Ministry of Economy No. 104 of 01.20.2021, the calculation of the level of the shadow economy can be carried out using various assessment methods. According to one of these methods - the loss-making method of enterprises, the level of the shadow economy in the extractive industries of Ukraine in 2020 was 41%.

The integral indicator of the level of the shadow economy in Ukraine in 2020, according to a study by the Ministry of Economy, was 30% of the volume of official GDP. However, according to certain methods of calculating the level of the shadow economy, this indicator differs and amounts to:

► by the enterprise loss method – 27% of the official GDP;

► by the monetary method – 31% of the official GDP;

► by the “population expenditure – retail turnover” method – 22% of the official GDP;

► by the electric method (using data on electricity consumption) – 23% of the official GDP.

According to the Ministry of Economy, in Ukraine in general the level of the shadow economy was 28% of the volume of official GDP in 2019. According to certain methods of calculating the shadow economy, this indicator was:

► by the method of "population expenditure - retail turnover" - 43% of the official GDP;

► by the method of loss of enterprises - 17% of the official GDP;

► by the monetary method - 22% of the official GDP;

► by the electric method (using data on electricity consumption) - 26% of the official GDP.

For comparison, the integral indicator of the level of the shadow economy in Ukraine was 31% in 2018, which is 1 percentage point less than in 2017. The level of the shadow economy in Ukraine according to certain methods was:

► by the method of "population expenditure - retail turnover" - 46% of the official GDP;

► by the method of loss of enterprises - 20% of the official GDP;

► by the monetary method - 24% of the official GDP;

► by the electric method (using data on electricity consumption) - 27% of the official GDP.

According to the State Statistics Service, it can be estimated that the share of the informally employed population in the extractive industries of Ukraine in 2020 is 7.69%, in 2019 it can be estimated at 8.29%, and in 2018 - 8.03% of the total employment in these industries, assuming that the level of informal employment in the extractive industries industries corresponds to the level of informal employment in the entire industry of Ukraine.

According to the Order of the State Statistics Service "On Approval of Methodological Provisions for Determining Informal Employment of the Population" No. 16 of January 23, 2013, informal employment is defined as the total number of informally employed employees in both the formal and informal sectors or in households. Informal employment covers the following categories of population:

► self-employed persons and employers working in their own enterprises in the informal sector;

► unpaid family members, regardless of whether they work in formal or informal sector enterprises;

► employees performing informal work who are not covered by legal or social protection as employed persons and are not entitled to other employment-related benefits, as well as hired domestic workers in households;

► Members of informal production cooperatives.

The State Statistics Service of Ukraine regularly publishes information on the number of informally employed population by type of economic activity. However, the specified information for 2022 at the time of preparation of this Report is not available in accordance with the Law of Ukraine "On the Protection of the Interests of the Subjects of Reporting and Other Documents During the Period of Martial Law or State of War". The publication of statistical information on the informal employment of the population will be resumed after the end of the legally established term for the submission of statistical reports by economic entities and taking into account the time required by the state statistical authorities to generate statistical information.

The number of informally employed population in Ukraine aged 15-70, according to the State Statistics Service, is 3,237.8 thousand people, or 20.34% of the employed population of Ukraine. In the industry sector, this indicator is much lower - 7.69%. Namely, 181.32 thousand people out of 2,358.6 thousand people employed in industry belonged to the informally employed population in 2020.
The independent administrator made an assumption that the level (share) of informal employment in the extractive industries corresponds to that of the entire industry. Therefore, the share of the informally employed population in extractive industries in 2020 is estimated at 7.69%.

According to the State Statistics Service, among the employed population in Ukraine in 2019 in the number of 16,578.3 thousand people, 3,460.4 thousand people or 20.8% were informally employed. In the industrial sector, the level of informal employment amounted to 8.29% - 204.2 thousand people out of 2,461.5 thousand people belonged to the informally employed population.

In order to estimate the number of informally employed population separately in extractive industries, the Independent Administrator made an assumption that the level (the share of) informal employment in extractive industries is the same as in all industry. Thus, the share of the informally employed population in extractive industries can be estimated at 8.29% in 2019.

In order to estimate the size of the informal sector in extractive industries in 2018, the Independent Administrator calculated the share of the informally employed population in these industries based on data from the State Statistics Service. The need for calculation is due to the lack of official disaggregated data of the State Statistics Service on the level of informal employment separately in extractive industries, instead such data are available only for the entire industry.

It was assumed that the share of the informally employed population in extractive industries is the same as in industry. Out of 16,360,000 employed persons in Ukraine, 3,541,300 are informally employed, of which 194,800 are informally employed in industry. The share of informal employment in industry was 8.03% in 2018. If we assume that the level of informal employment in the extractive industries is the same, then the number of informally employed population in these industries was estimated at 16.8 thousand people.