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Subsoil use

19/ 08/ 2024
  The Association welcomes the commencement of work on approving the list of subsoil areas of strategic importance that will be granted for use through auctions. On August 15, the text of the draft Cabinet of Ministers of Ukraine resolution On Approval of the List of Subsoil Areas (Mineral Deposits) of Strategic Importance for Sustainable Economic Development and National Defense, Which Will Be Granted for Use Through Auctions for the Sale of Special Permits for Subsoil Use was published for public discussion on the official website of the State Service of Geology and Subsoil of Ukraine. The experts of the Association have repeatedly emphasized the importance of adopting such a strategic decision regarding the approval of the corresponding list of subsoil areas. Member companies of the Association note that the lack of an approved list of subsoil areas by the Cabinet of Ministers does not contribute to attracting investment in the subsoil use sector in Ukraine, generating state budget revenues from the sale of such special permits, as well as providing opportunities for the development of both the mining industry and technological sectors, and ensuring the independence of critical industries for national security from imported raw materials. As noted by the experts of the Association, for a long time, international partners have expressed significant interest in investing in subsoil use projects, particularly for critical raw materials. This interest is, among other things, due to the reorientation of markets and the search for reliable partners in the minerals sector. Therefore, business representatives believe that resuming auctions for subsoil areas of strategic importance for sustainable economic development and national defense will contribute to a significant influx of foreign currency into the countrys economy, which is crucial for ensuring economic stability and national defense during wartime. The European Business Association welcomes the first steps towards starting auctions for subsoil areas of strategic importance and expresses gratitude to the Verkhovna Rada Committee on Environmental Policy and Natural Resources, the Cabinet of Ministers of Ukraine, the Ministry of Environmental Protection, and the State Service of Geology and Subsoil for considering the position of the business community! It should be noted that by the decision of the National Security and Defense Council of Ukraine from July 16, 2021, On Stimulating the Search, Extraction, and Enrichment of Minerals of Strategic Importance for Sustainable Economic Development and National Defense, implemented by the Presidential Decree of July 23, 2021, No. 306, the Cabinet of Ministers was instructed to approve within two months: a) a list of subsoil areas (mineral deposits) of strategic importance for sustainable economic development and national defense, which will be granted for use under production sharing agreements; b) a list of subsoil areas (mineral deposits) of strategic importance for sustainable economic development and national defense, which will be granted for use through auctions for the sale of special permits for subsoil use.
The Association welcomes the commencement of work on approving the list of subsoil areas of strategic importance that will be granted for use through auctions.

On August 15, the text of the draft Cabinet of Ministers of Ukraine resolution “On Approval of the List of Subsoil Areas (Mineral Deposits) of Strategic Importance for Sustainable Economic Development and National Defense, Which Will Be Granted for Use Through Auctions for the Sale of Special Permits for Subsoil Use” was published for public discussion on the official website of the State Service of Geology and Subsoil of Ukraine.

The experts of the Association have repeatedly emphasized the importance of adopting such a strategic decision regarding the approval of the corresponding list of subsoil areas.

Member companies of the Association note that the lack of an approved list of subsoil areas by the Cabinet of Ministers does not contribute to attracting investment in the subsoil use sector in Ukraine, generating state budget revenues from the sale of such special permits, as well as providing opportunities for the development of both the mining industry and technological sectors, and ensuring the independence of critical industries for national security from imported raw materials. As noted by the experts of the Association, for a long time, international partners have expressed significant interest in investing in subsoil use projects, particularly for critical raw materials. This interest is, among other things, due to the reorientation of markets and the search for reliable partners in the minerals sector. Therefore, business representatives believe that resuming auctions for subsoil areas of strategic importance for sustainable economic development and national defense will contribute to a significant influx of foreign currency into the country’s economy, which is crucial for ensuring economic stability and national defense during wartime.

The European Business Association welcomes the first steps towards starting auctions for subsoil areas of strategic importance and expresses gratitude to the Verkhovna Rada Committee on Environmental Policy and Natural Resources, the Cabinet of Ministers of Ukraine, the Ministry of Environmental Protection, and the State Service of Geology and Subsoil for considering the position of the business community!

It should be noted that by the decision of the National Security and Defense Council of Ukraine from July 16, 2021, “On Stimulating the Search, Extraction, and Enrichment of Minerals of Strategic Importance for Sustainable Economic Development and National Defense,” implemented by the Presidential Decree of July 23, 2021, No. 306, the Cabinet of Ministers was instructed to approve within two months:

a) a list of subsoil areas (mineral deposits) of strategic importance for sustainable economic development and national defense, which will be granted for use under production sharing agreements;

b) a list of subsoil areas (mineral deposits) of strategic importance for sustainable economic development and national defense, which will be granted for use through auctions for the sale of special permits for subsoil use.

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