Ukraine has significant potential in the natural resources and energy sector, which makes this industry critical to economic growth and national security. The development of this sector is focused on increasing renewable energy production, modernising energy infrastructure and attracting investments to increase the country’s energy independence.

Challenges and opportunities in the sector

A key challenge currently is the transition from conventional energy sources to more sustainable alternatives, such as solar and wind power. This transition necessitates substantial investment in new technologies and infrastructure, as well as the development of new regulatory frameworks that promote sustainable development. Consequently, new investment opportunities are emerging, infrastructure is being modernised, and innovative technologies are being introduced across all sectors. The post-war period is set to be a pivotal stage for the industry’s revitalisation, with the potential to attract international capital and technological advancement.

Role of ESG principles in the industry

In light of the global challenges posed by climate change and social responsibility, the implementation of ESG principles is becoming an imperative for businesses. By integrating these principles, businesses can enhance sustainability, reduce environmental impact, support communities, and ensure transparency in corporate governance.

In October 2024, the Cabinet of Ministers of Ukraine approved the Strategy for Implementation of Sustainable Development Reporting by Enterprises, which sets out new requirements for businesses in terms of transparency and responsibility in the field of ESG.

In the contemporary business landscape, environmental and social considerations have become non-negotiable. ESG principles are becoming an integral part of the development of the energy sector:

• Environment: reducing emissions, waste management and environmental responsibility.
• Social responsibility: safe working conditions, community support and social initiatives.
• Governance: transparency of processes, effective corporate governance and compliance with international standards.

As part of the Natural Resources and Energy industry group, a webinar entitled “Sustainability Strategies Shaping the Future: Energy Security, Investment and Sustainable Development”, was held on 22 November 2024. During the event, leading experts discussed the key challenges of Ukraine’s energy sector, including the prospects for renewable energy development, human resource needs of the market and new EU requirements for sustainability reporting. The webinar has become an important platform for discussions on Ukraine’s integration into the European energy space and opportunities to attract investment in the sector.

At BDO Ukraine, we assist businesses to move forward with confidence. Our team of professionals supports companies operating in the natural resources and energy sectors with expert advice and practical solutions. We understand your needs and offer comprehensive services to help you manage and develop effectively:

• Audit and preparation of financial statements in accordance with IFRS, which ensures transparency and increases investor confidence.
• Advice on tax risk management and cost optimisation, which helps to reduce costs and improve financial stability.
• Developing sustainability strategies and implementing digital transformation that increase competitiveness and meet modern market requirements.
• Integrating cybersecurity and business process automation to ensure data protection and operational efficiency.
• Digitalisation of processes using Microsoft products and implementation of artificial intelligence to automate routine tasks.

Why BDO?

In terms of the challenges and opportunities presented by the energy sector, our expertise lies in effective action. Our team comprises over 60 experienced professionals, who provide a personalised service to each client. We are trusted by 143+ companies in the sector, and we continue to expand our expertise.

BDO’s global network of 1,800 offices in 166 countries gives us access to best practice and innovation. In 2024, our global team expanded to nearly 120,000 individuals, and our global revenue surpassed USD 15 billion.

We integrate local expertise with international proficiency, enabling us to swiftly identify optimal solutions to even the most intricate challenges faced in the natural resources and energy sectors, encompassing metals, oil and gas, and renewable energy.

The Natural Resources and Energy team is dedicated to staying informed about changes and updates in the industry. They organise events that are relevant to the sector, analyse market trends, and prepare reports and materials that provide valuable insights. Please find below some examples of the reports and materials that have been prepared:

• Mining industry by 2025 and privatization of Titan Mining and Processing Plant: report on the upstream industry and forecasts for 2025.
• Renewable energy trends in 2025: material on request of Liga.Zakon
• Energy sector in Ukraine and the world: forecasts and challenges.
• The impact of RES guarantees on the development of green energy in Ukraine.
• Risks and benefits of entering into renewable energy contracts: proposed amendments to IFRS 9 and IFRS 7.

Contact BDO in Ukraine

Should you be seeking a reliable partner to assist you in developing your business in the energy and natural resources sector, we are here to help. To discuss how we can help, please get in touch today.