Amber road of Ukraine

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BALTIC JEWELLERY NEWS 42–2022 AMBER ROAD OF UKRAINE

It is common knowledge that Ukraine is second in the world when it comes to the amber deposits. However, the way of the official amber mining market formation has been ongoing in Ukraine for more than 30 years. Since August 24, 1991 when Ukraine gained independence, each new power has promised to develop legislation that would allow amber to be mined legally in Ukraine. But the promises just remained promises. The security agencies often in cooperation with the criminals have organized more and more new schemes for illegal mining and black export of amber to Europe and China. And the state has lost hundreds of millions of dollars from doing so, especially during the reign of the President-the-fugitive Yanukovych, when the global amber prices have reached sky highs. During this period, the Ukrainian Polissia, which bears the largest reserves of sunstone, has seen and gang wars over the spheres of influence on amber mining, and the demonstrative arrests of illegal miners who refused to pay, and exposure of corrupt officials who “covered” the illegal mining. In every amber region there are many stories about the incredible luck of the miners and the instant opportunity to get rich. In short, this period can be called “the amber rush in Ukraine”.

Realizing the prospects of the amber business in Ukraine and the necessity of transforming the illegal business into the official type of activity, an initiative group of several enterprises has created the ASSOCIATION OF AMBER BUSINESS OF UKRAINE. The association is a network of economic entities whose activities are related to the functioning and development of the field of geological study, mining, processing and sale of amber and amber products. During the period of activity the Association was joined by several dozen members from Ukraine and other countries of the world. Some of them are engaged in amber mining, while others process amber into semifinished products or jewelry. Among the members of the Association there are enterprises that provide services for geological studies, research and industrial development of amber deposits, development of project documentation for mining, etc.

The official amber mining market in Ukraine has come into being in December 2019, when the Verkhovna Rada of Ukraine has adopted the Law on

Photo of the process of illegal amber mining Mykola Kotniuk – chairman of the board of the ASSOCIATION OF AMBER BUSINESS OF UKRAINE Ivan Pradosh is the president of the AMBER BUSINESS ASSOCIATION OF UKRAINE

Improvement of Legislation on Mining of Amber and Other Minerals. This Law provided for the possibility of purchasing at electronic auctions special permits for the extraction of amber on land plots disturbed by illegal miners with an area of up to 10 hectares. The idea behind such legislative changes is for investors, after obtaining special permits, to mine the remains of amber on disturbed lands and carry out reclamation of land plots.

According to Mykola Kotniuk, the Chair of the Board of the ASSOCIATION OF AMBER BUSINESS OF UKRAINE, by the beginning of Russian fullscale invasion of Ukraine, at the public electronic auctions were sold 75 special permits for subsoil use, of which 65 permits for amber mining and 10 permits for the geological study of amber-bearing subsoil.

The amber mining is allowed for subsoil users on an area of 625.14 hectares, and geological exploration – on 1574.03 hectares. Since the beginning of Russia’s war against Ukraine, the sale of special permits has been suspended, although, according to Mykola Kotniuk, the State Service of Geology and Subsoil of Ukraine has prepared for auction more than 120 another plots.

Despite the adoption of the Basic Law on Amber Mining, the subsoil users in Ukraine still face difficulties in conducting amber business. But the ASSOCIATION OF AMBER BUSINESS OF UKRAINE is constantly working on improving the legislation on amber mining. For example, with the participation of the ASSOCIATION, the mechanism of subsoil users’ access to land plots is being improved, the problem with existing forest plantations on the plots is solved, a unified mechanism for determining the amount of damages to landowners and land users for the temporary occupation of land plots is being introduced and so on. Through joint efforts of the State, the ASSOCIATION OF AMBER BUSINESS OF UKRAINE and subsoil users, all obstacles in doing amber business will be overcome, and amber mining activity will be comfortable and profitable.

Meanwhile, as a result of sanctions imposed on russian federation and suspension of amber exports from kalininhrad the cost of amber and amber products in the world is increasing. There is a lack of sunstone. Ukraine is able to satisfy the demand of the most demanding connoisseur of amber from European countries, as well as from the countries of the Arab world and China. Already in the near future, active subsoil users will start the amber mining on the received areas and, accordingly, export to the interested countries will begin. And after the end of the war with the victory of Ukraine, the state will put up for sale at the auction additional plots of amber-bearing subsoil, in the purchase of which the investors from foreign countries will be able to participate.

The ASSOCIATION OF AMBER BUSINESS OF UKRAINE is ready to assist the investors from Europe and other countries in starting an amber mining business in Ukraine.

For the nearest period the ASSOCIATION OF AMBER BUSINESS OF UKRAINE plans to unite all holders of special permits for amber mining, as well as the majority of processing and exporting enterprises. Under the auspices of the Association, the subsoil users is expected to participate in the international exhibitions that are periodically held in different countries of the world. And the strategic goal of the Association is the organization of a permanent exhibition in the city of Rivne and transformation of the latter into

the “amber capital”. Due to the war the world’s attention is focused on Ukraine and after the victory there will be an unprecedented flow of investments and those wishing to see Ukrainian charms with their own eyes, one of which is the amber sun stone.

Contacts of the ASSOCIATION OF AMBER BUSINESS OF UKRAINE: 33014, Ukraine, Rivne region, the city of Rivne, Kniahyni Olhy Street, building 9, office 1. Phone: +380673604770 E-mail: amber.business.association@gmail.com http://uaamber.com/