Subsoil Resources of Volyn: Investment, Challenges and Prospects – Interview with Anatolii Kapustiuk on “Avers” TV Channel
In the Volyn region, subsoil resources have always been not only natural assets but also a powerful driver of investment and new opportunities for regional development. The current state of the peat extraction and amber industries, international experience, key challenges and future plans were discussed by Anatolii Kapustiuk, Director of the municipal enterprise Volynpryrodresurs of the Volyn Regional Council, in an interview on the “Avers” TV channel.
International Forum in Riga: Peat Extraction and Technologies
Recently, a delegation from the Volyn region took part in the International Forum of the Baltic Peat Industry held in Riga.
More details are available via the link: ME Volynpryrodresurs Participated in the Baltic Peat Producers Forum 2025 in Riga
The main objective of the visit was to familiarise participants with modern equipment and technologies, explore opportunities for leasing such equipment, analyse market prospects, and hold meetings with government officials to engage in constructive dialogue on potential cooperation.
The Forum brought together over 300 participants from around the world, including peat industry associations from Canada, Latvia, Sweden, Estonia, Germany, and many other countries. Discussions covered not only peat extraction and processing (for agricultural and energy use), but also environmental aspects, rehabilitation of depleted sites, and modern technological solutions.
Ukraine was represented at the event by: ME Volynpryrodresurs, LLC Land Grou (TD Smyzky Peat Briquette Plant), Lopatyn Peat Briquette Plant, and LLC Mineral Extraction.
Following the Forum, Anatolii Kapustiuk travelled to Finland to familiarise himself with the operations of SUOKONE (MeriPeat) in Vuokatti, Sotkamo Municipality—a global leader in peat extraction equipment manufacturing since 1971. He also visited an energy peat extraction site to observe the machinery in operation during the extraction process.
“In Ukraine, approximately 1,000 tonnes of milled peat per hectare are extracted, with an extraction season lasting 7–8 months. In Finland, the extraction season lasts only 2–3 months, yet up to 3,000 tonnes per hectare are produced. Everything depends on the equipment. Higher productivity means higher quality,” Anatolii Kapustiuk noted.
The difference between outdated and modern equipment proved to be striking. Advanced, modern machinery would open up new opportunities for peat extraction in the Volyn region.
During the Forum, cooperation options with government representatives of Latvia and Finland were also discussed, including equipment leasing arrangements.
“In Helsinki, the support for Ukraine was particularly impressive: our national flags were flying on all government buildings,” Anatolii Kapustiuk added.
Initiative to Establish the Ukrainian Peat Association
One of the key outcomes of the Ukrainian delegation’s visit was the decision to establish a national peat industry association. Unlike many European countries, Ukraine currently lacks such an organisation.
Together with other Ukrainian participants represented at the Forum, the municipal enterprise Volynpryrodresurs, which collectively accounts for approximately 80% of Ukraine’s peat extraction market, will act as an initiator of the Ukrainian Peat Association (UPA).
As Anatolii Kapustiuk explained:
“The new organisation will be registered in the Volyn region and will represent the interests of the peat industry at the level of ministries, government bodies and internationally. I can already announce its working name: the Ukrainian Peat Association (UPA), registered in Volyn.”
Current Situation of Peat Extraction in the Volyn Region
Following the privatisation of Volyntorf State Enterprise, the contract between the municipal enterprise and Volyntorf was transferred to Agrobiostandart LLC. After settling contractual obligations and recovering outstanding debts, the agreement was terminated on 23 October 2025. As a result, Volynpryrodresurs is now focusing on the independent development of peat sites or on attracting new partners for further operations.
Lviv Conference: Focus on Investment
The Tenth Conference “Subsoil Use in Ukraine: Investment Prospects” was a jubilee edition and was held with the support of Volynpryrodresurs. The event brought together international experts from the United States and Germany, as well as representatives of the oil and gas, metallic and non-metallic mineral sectors.
Anatolii Kapustiuk acted as a co-author of a presentation devoted to amber-bearing areas of Polissia, as well as the restoration and expansion of geological prognostic mapping.
More details are available via the link: Amber-Bearing Areas in Polissia: Summary of the Report at the Conference “Subsoil Use in Ukraine. Investment Prospects”
“We represented the Volyn region and our enterprise. The presentation focused on the development prospects of the amber industry in Polissia and the urgent need to update geological materials. Most archival data on amber date back to the 1970s–1990s. To attract investors, new exploration campaigns, updated mapping and modern laboratory data are required,” Anatolii Kapustiuk noted.
International partners are ready to invest, but only in projects with confirmed and up-to-date geological data. This can be achieved either through state funding or by expanding special subsoil use permits for licensed operators and specialised institutions.
Following the Conference, a delegation of the State Commission of Ukraine on Mineral Resources, headed by its Chair, visited the Amber Plant in the Volyn region.
More details are available via the link: The State Commission of Ukraine on Mineral Resources and Volynpryrodresurs: Visit to the Amber Plant
Challenges of 2025 and Plans for 2026
The current production year has proven challenging for Volynpryrodresurs Municipal Enterprise, due to objective factors. Amber extraction has declined significantly as a result of ongoing issues related to the release of forested areas for mining purposes. The last time State Enterprise “Forests of Ukraine” (Polissia Forestry Office) cleared land of forest plantations for amber exploration and extraction was in August 2024. For over eighteen months, the enterprise has been unable to obtain new extraction sites, despite amendments to the legislation. In particular, Part Five of Article 58 of the Forest Code of Ukraine, as well as Cabinet of Ministers Resolution No. 105 of 4 February 2023 (as amended by Resolution No. 721 of 18 June 2025), explicitly allow forest clearing for the purposes of subsoil use.
“Appeals to State Enterprise ‘Forests of Ukraine’, official letters and instructions from the central office to the Polissia Forestry Office have all produced no result. This situation is causing significant losses and may qualify as obstruction of lawful business activity under Part 3 of Article 206 of the Criminal Code of Ukraine. However, this is a matter for law enforcement authorities, as from our side all possible avenues for dialogue have been exhausted,” Anatolii Kapustiuk stated.
Ambitious Plans for 2026:
Amber: Attraction of new areas for extraction, starting with 13 hectares across 7 sites, access to which was previously restricted by the Polissia Forestry Office of State Enterprise “Forests of Ukraine” through obstruction and administrative inaction.
Peat: Procurement of modern equipment, independent extraction or development through partnerships, and in-house processing into finished products. Agrobiostandart LLC will no longer conduct extraction activities on the enterprise’s licensed areas but may purchase finished products at market prices if required.
Establishment of the Ukrainian Peat Association.
Other Strategic Areas: Additional promising areas of activity for the municipal enterprise are under consideration and will be announced at a later stage.
The subsoil resources of the Volyn region hold significant potential. With the introduction of modern technologies, increased investment, and the removal of bureaucratic barriers, the region is well positioned to assume a leading role in the peat, amber and... related industries. The end of the war will further open the way for uninterrupted operations across all areas of activity.