Ukraine, which once independently supplied itself and others with a strategically important product – salt, now mostly selectively purchases it abroad. Prices for salt in stores significantly exceed the level before the Russian invasion.
After the loss of the salt mines in Donbas, the Ukrainian market quickly became saturated with imported salt, but the demand for it remains high. People are nervous about a possible shortage, especially when Russian media spreads fake news about it.
The salt shortage, along with the fuel shortage, was one of the first problems that Ukrainians faced after the war began. There is enough salt now, but Ukraine is actively working to reduce its dependence on imports and produce its own product. For example, Transcarpathia has announced the possibility of significantly increasing production, even the ability to provide the entire country with salt. Some specialists have also been transported from Donbas.
The BBC report examines how Ukraine functions without the famous "Artemsalt", identifies sources of imported salt, and explores the possibility of independently supplying the market with its own product in the near future.
Before the war, Ukraine was almost fully self-sufficient in salt and was a leading exporter of this strategic product thanks to Artemsol, one of the largest salt producers in Europe. In 2017, its reserves reached 4.5 billion tons of rock salt, and its production capacity allowed it to produce 7 million tons of salt annually.
A few years before the war, Artemsol began reforms, even obtaining permission to operate as a tourist, conducting tours and concerts in the salt mines. The volume of salt was so large that it was even used in unusual industries, such as the production of salt rooms and cosmetics.
During 2021, Artemsol produced 1.9 million tons of salt, and about a third of this amount remained on the domestic market, while the rest was exported to 15 countries around the world. Several other mining enterprises in Donetsk, Poltava, Kherson, and Lviv regions also operated on the market, but their resources and production volumes differed significantly from Artemsol. For example, the reserves of LLC Slavyanska Sil, also in Donetsk region, were estimated at approximately 90 million tons.
During the Russian invasion, the front was rapidly approaching the town of Soledar, where Artemsol, a large enterprise that was once one of the largest salt producers in Europe, had its headquarters.
Already in the first month of the war, the enterprise became the object of shelling, and salt production ceased in April. Until May 2022, Artemsol continued to pay salaries to employees, but in June the enterprise's activities were suspended.
As a result of the military operations, the company's workshops suffered from fires, equipment was completely destroyed, and buildings were damaged. Many employees were forced to leave their homes.
The area, home to the richest salt mines of Bakhmut and Soledar, became the scene of a fierce battle that lasted for half a year from July 2022 to January 2023. Since early January, the Ukrainian Armed Forces have completely withdrawn from the vicinity of Soledar after fighting that has been described as “madness,” leaving the Russian occupation of the city and the railway station called Sil under control. Soledar remains under Russian occupation today.
After the cessation of the main salt producer in Ukraine, which provided approximately 90% of all production, prices for this product in the country rose rapidly - from 9 to 90 hryvnias per kilogram.
Ukraine, once a major exporter of salt, is now forced to import this product. However, with the first large shipments of imported salt, prices began to decrease.
Artemsol salt disappeared from store shelves and reappeared there, already as a kind of souvenir. Some retailers used unsold stocks, creating packaging with the help of the UNITED24 project, the profits from the sales of which were donated to the needs of the Ukrainian army. It was later announced that the sale of a limited batch of Artemsol had raised more than $ 1.6 million for the purchase of drones for Ukrainian intelligence.
Currently, the salt market, according to agricultural market expert Larisa Guk, is stable thanks to imported supplies, although prices are higher compared to the previous period, and more sea salt has also appeared.
“We closed the deficit with imports. It seems that everyone has calmed down, but prices are already three times higher than before,” the expert notes, pointing out that during this period, Ukrainian entrepreneurs have switched to a new type of activity.
“Many small producers buy salt in bulk and repackage it. Just like with sugar, oil, or pasta.”.
A new approach has also been taken by retail chains, which use their own packaging to add profitability to the sale of wholesale products.
The State Customs Service reports that during the first half of 2023, Ukraine imported over 211 thousand tons of salt worth over $46 million. The share of salt in total imports has increased, but remains small - only 0.15%.
In comparison, during 2022, Ukraine imported almost 440 thousand tons of salt worth $92 million.
Turkey is identified as the largest supplier of salt to Ukraine, providing approximately a third of the total salt imports. In addition, salt is also supplied to Ukraine from Romania and Egypt.
It is worth noting that last year, Poland, which was one of the main buyers of Ukrainian salt exports before the war, was also among the main suppliers of salt. The volume of salt exports to Poland in 2021 reached over 700 thousand tons.
How much salt does Ukraine really need?
When it comes to the production or import of salt, it is important to consider that this applies to both edible salt used in the food industry and technical salt used in metallurgy, oil refining, the chemical industry, and the production of paper, glass, paints and varnishes.
Technical salt is also used to treat roads and runways, which is important to consider.
It is also important to remember that table salt is not only used in kitchens. In the food industry, it is used for preservation and production of a wide range of products - from ketchups and mayonnaises to candies and cakes.
After the cessation of Artemsol's activities and the emergence of concerns over the shortage of salt on store shelves, Deputy Minister of Economy Taras Kachka explained that of the company's total production volume in 2021, which amounted to 1.1 million tons, 907 thousand tons were technical salt.
It is important to note that one of the largest buyers of Artemsol products was the Mariupol Ilyich Metallurgical Plant, which was destroyed by the Russians.
Another significant customer was Avtodor, which used significant amounts of salt to treat roads in the winter. However, planes stopped flying over Ukraine with the closure of the skies following the outbreak of war.
Before the war, Ukraine's domestic needs for technical salt were about 907,000 tons, and for food salt - 450,000 tons annually. This amount, plus or minus, was produced by the Artemsol company, according to Ksenia Orynchak, executive director of the National Association of Mining Industries of Ukraine.
However, it is obvious that now the need for technical salt has significantly decreased. Azovstal and Mariupol Ilyich Metallurgical Plant, which are now not controlled by Ukraine due to the war, have been almost completely destroyed, which has led to a significant reduction in production at other domestic metallurgical enterprises in Ukraine, Ksenia Orynchak points out.
It is also worth considering the decrease in the population of Ukraine, reminds Larysa Huk, due to the departure of millions of Ukrainians abroad and losses due to the war.
Not only demographic indicators are changing, but also eating habits, in particular, there is a transition from rock salt to sea salt. This phenomenon can be observed not only in everyday life, but also in industry, where sea salt, in particular coarse salt, is effectively used - confirmed by the experience of housewives interested in industrial salting.
“Of course, it’s always better to have your own way in everything, especially in the food industry. This makes you more flexible in any circumstances. A well-known example is the “golden” onion,” adds the agricultural expert.
But even with limited salt needs, it becomes difficult to satisfy domestic reserves solely with domestic resources.
Total reserves of rock salt in Ukraine are estimated at approximately 9 billion tons. These reserves are located in the Donbas, the Dnieper Lowland, Transcarpathia and Prykarpattia, as well as in Crimea. However, due to the war and Russian occupation, only reserves mined in western Ukraine are available.
In order for there to be more domestic salt and less imported salt on the market, in addition to having reserves, it is critically important to quickly increase production.
At the moment, the only domestic producer of salt remains the Drohobych Salt Works, which expanded its capacity to 55 tons per month in the spring of 2022. The production process here is different: first, salt ore is mined, which is then evaporated over wood. This complex and costly production process causes a higher price for Drohobych salt compared to Artemovsk. It is obvious that this salt cannot completely replace it.
However, over the past six months, statements have been heard from another western region of Ukraine that salt from this region can not only satisfy domestic needs, but also restore salt exports from Ukraine.
Can Transcarpathia provide Ukraine with salt?
Transcarpathia has been famous for centuries for its salt mining, the history of which dates back to the end of the 18th century during the era of the Austrian Empire.
Industrial salt mining in the village of Solotvino began in Soviet times, and later an underground allergology department was opened there. People descended to a depth of about 300 meters to experience the beneficial properties of the salty air, which helped with respiratory diseases and asthma.
In 2007, the Solotvyno mines were flooded, which led to the formation of karst ravines. Since then, the mines have ceased operation, and the village has been declared an emergency zone.
Recently, the landscape has changed: once-crawling ravines have become deep salt lakes. In August 2023, the Transcarpathian Regional Council reported on 140 karst ravine development sites in Solotvyna.
Local authorities and President Zelensky have expressed confidence that Transcarpathia can provide Ukraine with salt. Head of the Transcarpathian regional government, Viktor Mykyta, predicts that in the coming years the region will be able to produce 100% of technical and edible salt for all of Ukraine.
Mykyta reports that six months ago, the extraction of technical salt from a new deposit - Tereblyansky - began in Transcarpathia. There are also plans to expand the extraction capacity and restore the glory that the Solotvyn salt deposit and the health resorts associated with it once had.
“The main thing is not to repeat mistakes. In Soviet times, mining took place at too high a pace, now we know what this can lead to,” Viktor Mykyta emphasized.
According to him, former employees of Artemsol have now found work in Solotvyn, and they now work as whole families. It is noted that 40 kilometers from Solotvyn, the Tereblyanske deposit is being actively developed, where the extraction of technical salt has already begun.
The head of the Transcarpathian regional government said that salt is extracted using a special technical device that resembles a combine harvester. This combine drills the salt and transfers it to a conveyor belt, which pulls the salt to the surface.
The field is being developed by Kation Invest LLC, which employs former Artemsol employees. The company's director, Sergey Kondratiev, noted that they are working together with specialists from Artemsol, and expressed confidence that the development of the Tereblyansky field will be successful.
“Our Tereblyansk salt in its unprocessed form is suitable for technical needs, there are many impurities, and the percentage of sodium here is about 90%, while there it is 97-98%,” Kondratiev added.
Regarding quality, he admits that currently Tereblyansk salt is inferior to Artemsol, but believes that the quality will improve over time. The Tereblyansk deposit has large deposits of high-quality table salt, but its extraction takes time.
It is noted that if it is possible to reach high-quality deposits of edible salt, production may begin in the second half of 2024. It is planned that by the end of 2024, Transcarpathia will be able to provide 50% of Ukraine's needs for "extra" type edible salt. Viktor Mykyta expressed hope that in 2025, the Tereblyanskoye deposit will provide 100% of Ukraine's needs for both technical and edible salt.
The reserves of the Tereblyansk deposit amount to about 500 million tons of technical salt and about one hundred million tons of food salt. Viktor Mykyta is confident that salt can be developed “for decades, for centuries” and exported not only to the domestic market.
However, the authorities admit that exporting salt from Transcarpathia requires resolving logistical issues, as the deposit is remote from railways, and local roads cannot handle the large traffic flow.
Are there alternatives to salt imports? Experts express a less optimistic view of the prospects for mass salt production in Transcarpathia and, in general, the rapid growth of Ukrainian production.
The director of the National Association of Mining Industries, Ksenia Orinchak, points out that it will not be easy to restore production at the Solotvyn deposit. According to her, it is necessary to build a new mine or use the method of salt extraction by evaporation from brine extracted from special wells. Such technical solutions, although possible, are expensive and time-consuming, which requires significant costs. Therefore, the restoration of salt production in Solotvyn, if it happens, will take a long time.
Other deposits in western Ukraine are also problematic, in particular Tereblyanske, which the Transcarpathian authorities are counting on. All necessary procedures, examinations and obtaining special permits, as well as the purchase of equipment and training of employees, Orynchak notes, will take at least two years.
The same situation is observed with the Dolynske deposit in Ivano-Frankivsk region. The Verkhnostrutynske deposit faces even more difficult difficulties, as mining here has caused a wave of discontent and protests among the local population.
According to Ksenia Orinchak, rapid growth in domestic salt production at the required level should not be expected before the next few years, so the import of salt, both food and technical, will remain relevant.
