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The step was taken towards simplification of the subsoil use procedure

04/ 03/ 2021
  On March 3, the Verkhovna Rada Committee on Environmental Policy and Nature Management approved a revised version of the draft law №4187 on the support and development of domestic subsoil use industries. The document is a synthesis of the best provisions of the alternative draft law №4187-1 which takes into account the comments submitted by the business community. It contains a number of initiatives aimed at simplifying the subsoil use procedure and increasing the industrys capacity. Thus, such EBA proposals were taken into account as: 1. Exclusion of the rules on the additional tax, the fee for the use of subsoil areas, which was used as a tool to prevent dormant licenses. 2. Exclusion of the possibility to pay in installments for the price of the special permit in which we saw a potential corruption component. This, in particular, will help minimize the possibility of obtaining a license by a company that does not have a clear intention to operate. 3. Exclusion of the need for an additional EIA procedure that could delay the implementation of investment projects of companies and cause additional costs. 4. Introduction of the right of full and partial alienation of rights under a special subsoil use permit by its owner which will help simplify the procedure for exercising the companys right to sell/purchase wells. Previously, it was impossible to transfer the right by law. 5. Exclusion of the rules on payment of the fee for the extension of special permits for all subsoil users which will ensure equal conditions for all participants in the extractive industry (after all, a few years ago this was possible only for oil and gas subsoil). The European Business Association thanks the Verkhovna Rada Committee for its openness and willingness to dialogue. The community is waiting for the registration of the draft law №4187-d on the website of the Verkhovna Rada. We hope for the further support of the document by the peoples deputies!   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

On March 3, the Verkhovna Rada Committee on Environmental Policy and Nature Management approved a revised version of the draft law №4187 on the support and development of domestic subsoil use industries.

The document is a synthesis of the best provisions of the alternative draft law №4187-1 which takes into account the comments submitted by the business community. It contains a number of initiatives aimed at simplifying the subsoil use procedure and increasing the industry’s capacity.

Thus, such EBA proposals were taken into account as:

1. Exclusion of the rules on the additional tax, the fee for the use of subsoil areas, which was used as a tool to prevent dormant licenses.
2. Exclusion of the possibility to pay in installments for the price of the special permit in which we saw a potential corruption component. This, in particular, will help minimize the possibility of obtaining a license by a company that does not have a clear intention to operate.
3. Exclusion of the need for an additional EIA procedure that could delay the implementation of investment projects of companies and cause additional costs.
4. Introduction of the right of full and partial alienation of rights under a special subsoil use permit by its owner which will help simplify the procedure for exercising the company’s right to sell/purchase wells. Previously, it was impossible to transfer the right by law.
5. Exclusion of the rules on payment of the fee for the extension of special permits for all subsoil users which will ensure equal conditions for all participants in the extractive industry (after all, a few years ago this was possible only for oil and gas subsoil).

The European Business Association thanks the Verkhovna Rada Committee for its openness and willingness to dialogue. The community is waiting for the registration of the draft law №4187-d on the website of the Verkhovna Rada. We hope for the further support of the document by the people’s deputies!

 

Be the first to learn about the latest EBA news with our Telegram-channel EBAUkraine.

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