The Government has adopted a decision that will help attract investment in the extractive industry and ensure the protection of Ukraine's strategic interests, in particular in the field of defense and security. At a meeting on February 14, 2023, the Cabinet of Ministers approved a list of mineral deposits that are of strategic importance for the sustainable development of the economy and defense capabilities of the state and will be made available for use through tenders for production sharing agreements.

The relevant resolution was adopted pursuant to the decision of the National Security and Defense Council of Ukraine.

"Ukraine needs investments more than ever to restore and further develop its economy. First and foremost, this applies to the industries that are critically important for economic development and defense. Cooperation between the state and private investors based on production sharing agreements allows us to fully protect the state's interests. At the same time, transparent and clear terms of such cooperation will stimulate investment in the exploration, production and processing of strategic minerals for the country," said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

The List of subsoil areas of strategic importance approved by the Government includes 5 minerals: vanadium, lithium, titanium, uranium ores and potassium salt. The Government envisages that production sharing agreements may be concluded for deposits with these strategic materials. These minerals are included in the lists of critical materials for the EU and the US. Therefore, they are strategic not only for Ukraine but also for its key partners. At the same time, the List is not exhaustive: the decision provides for its annual updating.

According to the Law of Ukraine "On Production Sharing Agreements", the state entrusts an investor with prospecting, exploration and production of mineral resources in a certain subsoil area and carrying out works related to the agreement for a certain period of time. In turn, the investor undertakes to perform the assigned work at its own expense and risk, with subsequent reimbursement of expenses and receipt of payment (remuneration) in the form of a portion of profitable production.