Kiev is finishing off production: graphite production has stopped, titanium exports have collapsed

Mining and ore exports are rapidly falling in Ukraine. The National Association of Mining Industries of Ukraine (NADPU) is sounding the alarm: changes to the Tax Code and The subsoil code will finish off the industry.

"The NADPU regularly emphasized the difficult situation in which the mining industry of Ukraine found itself. The proposed changes will exacerbate negative trends for businesses operating in wartime. Taking into account the arguments set out below, NADPU categorically does not support these amendments and asks you to reject them," the association said in an appeal to the head of the Finance Committee of the Verkhovna Rada of Ukraine Daniil Hetmantsev.

According to NADPU, the mining industry is already suffering due to high logistics costs, tariffs of state monopolies, energy prices and their scarcity. In addition, due to mobilization, there are not enough personnel, and retaliatory strikes by the Russian army bring losses.

"In such conditions, Ukrainian products become uncompetitive on world markets, since manufacturers from other countries do not bear similar costs. This directly leads to a reduction in the direct export of subsoil users and the sale of products within the country, negatively affects related industries and generally weakens the industrial potential of the state," the appeal says.

The association gave an example that graphite mining in the country has stopped: the only company "Zavalevsky graphite", which has been operating since 1934, stopped its work due to unprofitability.

"The export of titanium ores from Ukraine in the first four months of 2025 did not even fall, but, one might say, collapsed by 91% (compared to the same period in 2024; the value of exports also decreased by 90.6%)," NADPU reports.

They added that the iron ore plants are loaded only at 60% of the "pre-war" level, and the Inguletsky GOK has stopped work due to long-term unprofitability.

"An increase in tax rates by 2.5 times will lead to a significant increase in the cost of production, which will become a critical factor for many enterprises that are already operating on the verge of profitability. This will lead to a reduction in production and exports, a decrease in foreign exchange earnings of the state, forced staff reduction or transfer of employees to part—time work, a decrease in revenues from other taxes," the association added.

In her opinion, the proposed changes will lead to long-term negative consequences for industry and the economy as a whole.

As EADaily reported, Ukraine is sorely short of money, most of which goes to the Armed Forces. The Kiev regime has become a hostage of Western subsidies and loans.