The Uncertain Future of Ukraine's Peat Enterprises

The future of Ukraine's peat enterprises is currently uncertain, as the country, which is rich in peat reserves especially in the north, faces challenges in managing these establishments. Peat enterprises in Ukraine are significant as they convert peat into energy-efficient briquettes, which are eco-friendly and have a calorific value comparable to high-grade coal. These briquettes are used for heating homes and businesses, as well as agricultural fertilizer.

Originally managed under the State Enterprise "Ukrtorf," these peat enterprises have been transferred to individual management by the State Property Fund (SPF) as part of a privatization initiative. As of 2022, there are seven such enterprises: Rivnetorf, Volyntorf, Chernihivtorf, Kyivtorf, Podilatorf, Sumytorf, and Zhytomyrtorf. However, a major challenge these enterprises face is obtaining necessary mining permits from the State Service of Geology and Subsoil (Derzhgeonadra), with only three of the enterprises currently holding valid permits.

Volodymyr Boyko, the editor-in-chief of Nadra.Info, points out that the inconsistent management approach by the State has led to various issues within these enterprises. He emphasizes the need for competent leadership to ensure profitability and the maintenance of mining permits. For instance, Volyntorf is struggling to retain its permits, while Zhytomyrtorf lost its licensed plots due to changes in management.

The state ownership of these enterprises has had varied impacts. Some, like SE "Kyivtorf," have lost their permits and ceased operations, while others like Zhytomyrtorf are up for privatization but are facing legal challenges. The Ozeryansky plant of Zhytomyrtorf, known for producing high-quality peat, has been inactive due to lost mining permits, leading to unauthorized mining and financial losses for the state.

These issues highlight the complexities and challenges in the privatization and management of Ukraine's peat enterprises, underscoring the need for a more consistent and effective approach to capitalize on the country's rich peat resources.


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