The shortage of personnel threatens the development of subsoil use in Ukraine: the results of the EBA survey

The majority of Ukrainian companies in the field of subsoil use rate the industry as attractive for investment, despite the war. According to the September survey of the European Business Association (EBA), 78% of companies believe that investing in the Ukrainian underground remains promising. Only 4% have the opposite opinion, and 18% of respondents could not give an unequivocal answer. The survey covered 68 EBA member companies.

Despite the difficult situation in the country, 71% of companies continue to invest in mining. Another 13% are in the process of making decisions, and 16% are not making investments. By comparison, last year, when 39 companies were surveyed, the number of investors was slightly higher at 74%, while the share of non-investors was only 8%.

In the period 2023-2024, most investments in the industry were limited to amounts up to 5 million dollars or euros (51% of companies). Only 4% invested from 5 to 10 million, and 7% - more than 10 million. However, a significant number of companies (37%) did not make any investments during this period.

Only 16% of companies use international financial instruments such as MIGA, DFC, IFC, USAID, EBRD and others to support their activities. Another 24% are considering the possibility of applying to these sources of financing, but have not yet made a final decision. At the same time, 21% of respondents do not have information about such tools.

The full-scale invasion of Russia significantly affected the work of companies. Almost 21% of respondents have not yet resumed their activities, 36.8% have partially resumed work, and 23.5% are working in full. Only 19.1% of enterprises were able to continue working without interruption.

One of the new challenges for the industry in 2023 is the staff shortage caused by the mobilization of key employees. Almost all companies (96%) admitted that they experience labor shortages and difficulties in booking conscripts. According to Dmytro Kashchuk, head of the EBA Subsoil Use Committee, personnel problems can have serious long-term consequences for the development of the industry, inhibiting its recovery and modernization.