The ongoing war in Ukraine and subsequent restrictions are jeopardizing the country's amber sector reforms, potentially leading to a resurgence of black market activities. Ukraine is home to some of the world's largest amber reserves, with the stone being highly sought after in global markets, particularly in China. For decades following the collapse of the Soviet Union, the amber industry was plagued by organized crime groups, known as the "amber mafia," which carried out unregulated mining operations.
These operations resulted in the destruction of thousands of hectares of land and significant environmental degradation. In an effort to curb these activities, Ukrainian authorities passed a long-awaited law in 2019 to regulate the sector. The law required private companies to adopt environmentally friendly mining methods and rehabilitate damaged land in exchange for official permits. This led to a significant increase in official amber exports, rising from 0.61 tons in 2020 to 88.83 tons in 2025.
However, the outbreak of war and imposition of martial law in 2022 have led to a suspension of environmental inspections and audits. This has created an opportunity for unregistered amber, or "gray amber," to flood the market, now accounting for an estimated 60-70% of total production. The situation has also led to a rise in illegal mining activities, with environmental authorities launching hundreds of investigations into cases of illicit mining.
One notable case involved the dismantling of a network in June 2026, which caused an estimated $8 million in damages. In response to the growing insecurity, many companies have turned to private security firms armed with weapons obtained on the black market and diverted from combat zones to protect their operations and checkpoints.
The current situation has raised concerns among investors and compliant companies, who are calling for a resumption of government inspections and stricter controls. They argue that the lack of oversight gives non-compliant operators an unfair competitive advantage and deprives the state of the opportunity to exercise its authority and benefit from the exploitation of its natural resources.
The issue has significant economic and environmental implications, as well as security concerns. With the amber sector being a valuable resource for Ukraine, the government must find a way to restore order and ensure that the industry operates in a responsible and sustainable manner.
The international community is also watching closely, as the situation in Ukraine's amber sector has implications for global markets and the fight against organized crime.
Key points
- The war in Ukraine has led to a resurgence of black market activities in the amber sector.
- The Ukrainian government had made significant progress in regulating the sector before the war.
- The lack of oversight is giving non-compliant operators an unfair competitive advantage.
