On August 19, the Verkhovna Rada adopted in the second reading and as a whole draft law No. 15122 on the corporatization of the state enterprise "Eastern Mining and Processing Plant." This was reported by UNN.
The decision was supported by 271 members of parliament. The law is intended to create conditions for the financial recovery of the strategic enterprise and its subsequent merger with the National Nuclear Energy Generating Company "Energoatom."
Details
"SkhidGZK" is the only enterprise in Ukraine engaged in the extraction of uranium ore and the production of uranium concentrate. After the reform is completed, the government plans to establish a vertically integrated state structure that will encompass the entire nuclear energy cycle: from raw material extraction to electricity generation at nuclear power plants.
What the corporatization of "SkhidGZK" entails
Under the adopted law, the state enterprise "SkhidGZK" is to be transformed into a joint-stock company. At the same time, 100% of the shares in the new company will remain state-owned. In other words, corporatization does not mean privatizing the plant or selling it to private investors.
The document defines the mechanism for forming the authorized capital of the future joint-stock company, transferring state property and land plots to it, as well as the specifics of the enterprise's operation during the transitional period. The change in its organizational and legal form should subsequently make it possible to reorganize the enterprise and integrate it into the structure of "Energoatom."
At the same time, the adoption of the law by the Verkhovna Rada does not yet mean that the enterprise will automatically be merged with the nuclear company. First, the corporatization procedure must be completed, after which the subsequent stages of the reorganization may be implemented.
Why merge "SkhidGZK" with "Energoatom"
The government views the merger of the two enterprises as an opportunity to create a vertically integrated nuclear energy holding in Ukraine. It will control the chain from uranium ore extraction and uranium concentrate production to electricity generation at Ukrainian nuclear power plants. This involves concentrating a significant part of the nuclear production cycle within a single state structure.
This should strengthen Ukraine's energy independence and ensure a more stable link between the extraction of domestic uranium raw materials and the needs of Ukraine's nuclear power generation sector.
Why "SkhidGZK" is a strategic enterprise in Ukraine
As we noted above, the "Eastern Mining and Processing Plant" is the only enterprise in Ukraine engaged in the industrial extraction of uranium ore and the production of natural uranium concentrate. According to the Ministry of Energy, it supplies up to 40% of the uranium raw material needs of Ukrainian nuclear power plants.
The enterprise uses, among others, the Central, Michurinske, Novokostiantynivske and Vatutinske deposits in the Kirovohrad region.
At the same time, uranium concentrate is only one of the initial elements of the nuclear fuel cycle. For further use at nuclear power plants, the raw material must undergo additional processing and nuclear fuel production stages.
Why the enterprise was decided to be reformed
One of the main reasons for reforming "SkhidGZK" is the enterprise's difficult financial situation. The Ministry of Energy previously reported that the plant's accounts payable amounted to approximately UAH 9.8 billion. At the same time, the book value of its assets was estimated at approximately UAH 3.6 billion.
In particular, "SkhidGZK" owed approximately UAH 3.3 billion to "Energoatom," while another approximately UAH 400 million constituted a debt to the state budget.
The Ministry of Energy had previously described the enterprise's condition as critical and emphasized the need for its financial recovery.
The insufficient level of uranium concentrate production also remains a problem.
According to data previously cited by the Ministry of Energy, the enterprise produced approximately 25 tonnes of uranium concentrate per month. At the same time, producing approximately 50 tonnes per month is necessary to reach break-even operations.
The government plans to gradually increase production volumes. One of the targets previously announced was to reach approximately 45 tonnes of concentrate per month.
"Energoatom" is expected to provide more than half a billion hryvnias in assistance to "SkhidGZK"
To stabilize the enterprise's operations, the government approved the provision of UAH 555 million in repayable financial assistance from NAEC "Energoatom" to "SkhidGZK" through the end of 2027.
The funds are planned to be used to modernize production, purchase mining equipment, develop new levels, reconstruct mine infrastructure, hoisting installations, and ventilation systems. The plans also include the design and construction of a new sulfuric acid production plant with a capacity of approximately 85,000 tonnes per year.
The modernization should enable the combine to increase the extraction and production of uranium concentrate, as well as gradually improve its financial performance.
Provisions on energy construction were added to the bill
When the bill was prepared for its second reading, its scope became broader than merely the corporatization of "SkhidGZK". The document also included provisions on the construction of decentralized energy facilities under martial law, the use of land plots for such facilities, and the terms of their connection to electricity grids.
Some versions of these provisions drew criticism from environmental organizations, which cited possible risks associated with simplified construction in valuable natural areas. During the document's revision, the relevant parliamentary committee reported that additional safeguards had been introduced for forest, water, mountain, and other particularly valuable lands.
What happens next
After its adoption by the Verkhovna Rada, the document must undergo the procedure for formalization and signing prescribed by law.
Once the law enters into force, the practical corporatization of "SkhidGZK" is to begin.
The government's next announced step will be the accession of the joint-stock company to NAEC "Energoatom". If this plan is implemented, the state will combine Ukrainian uranium extraction and nuclear generation within a single structure, seeking both to rescue the financially troubled "SkhidGZK" and strengthen its own raw-material base for nuclear energy.
Recall
In July 2026, the Cabinet of Ministers approved the provision of UAH 555 million in repayable financial assistance to "SkhidGZK" through the end of 2027. The funds will be directed toward increasing uranium ore extraction and concentrate production.