Ukraine's mining industry demands postponement of environmental tax hike: sector on the brink of collapse

August 18, 2026. The Association of the Mining Industry of Ukraine (NAGPU) has sent an official appeal to regulators demanding a review of plans to increase environmental tax rates. Amidst the ongoing war and a systemic crisis in the sector, business representatives state that any additional fiscal burdens could lead to the shutdown of enterprises and a sharp rise in prices for end consumers.

Crisis amidst blockade and shelling

The situation in the resource extraction sector remains critical. According to NAGPU, enterprises are operating under conditions that experts describe as a "perfect storm." The industry continues to suffer from the blockade of seaports, which paralyzes export capabilities, as well as a labor shortage caused by mobilization and migration. This is compounded by regular shelling of infrastructure and a chronic lack of funding for the restoration of facilities.

Particular concern is raised by the rise in logistics costs. Tariffs of the state railway company "Ukrzaliznytsia" were increased by 30%, making the transportation of coal and other resources economically unviable for a number of mines. Combined with high energy prices, the profitability of many enterprises is already close to zero. According to the association, the introduction of new taxes at this moment would be a fatal blow.

Catastrophic growth of the waste tax

The central point of the discussion was the proposal to increase the environmental tax rate on household waste. According to current plans, the rate could rise from a range of 5–50 hryvnias to 1909 hryvnias per ton. This implies an increase in payments by 38–382 times.

NAGPU representatives emphasize that such a decision does not take into account the real solvency of the population and businesses. A sharp jump in the cost of waste disposal will place a heavy burden on households that are already living in conditions of energy shortages and inflation. For enterprises, this means the need to either close production lines or pass the costs on to the final product, which will lead to price increases in the market.

Priority: preserving economic viability

The association insists that under current conditions, the priority must be the preservation of the economic viability of enterprises and households. They propose a compromise option: make changes only to the classification of waste to bring legislation into line with European standards, but postpone the increase in rates until the end of the war and economic stabilization.

The industry also advocates for the adoption of a specialized law on the creation of a full-fledged waste management system, but only after financial stability for market participants has been ensured. Experts warn that the implementation of the WMS (Waste Management System) in its current form poses risks to the entire state economy, as it lacks mechanisms for adaptation to force majeure circumstances of wartime.