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European Business Association calls for rejection of the draft resolution on the resumption of scheduled inspections for subsoil users

17/ 03/ 2025
  On 26 February 2025, the State Service of Geology and Mineral Resources of Ukraine published a draft resolution of the Cabinet of Ministers of Ukraine proposing amendments to Resolution No. 303. In particular, the document envisages the resumption of scheduled and unscheduled inspections of subsoil users whose activities are classified as high-risk. Experts from the European Business Association have analysed the draft and concluded that the need for legislative amendments due to the risk of so-called “dormant permits” does not fully align with the current situation. The resolution aims to identify and prevent the existence of just 29 such permits; however, more than 300 enterprises would be subjected to inspections. The EBA’s experts emphasise that current legislation already allows for unscheduled inspections in cases where citizens rights, the environment, or national security are at risk. Furthermore, under Ukraine’s Subsoil Code, failure to address violations after they have been identified during inspections is grounds for revoking a special permit. This means that the issue of “dormant permits” can be addressed without the need for large-scale inspections of all subsoil users. Under martial law, a significant portion of the industry operates in extremely challenging conditions due to security risks, labour shortages, disruptions in logistics, and energy supply issues. The introduction of extensive inspections would create additional administrative and financial burdens, potentially leading to the suspension of production processes. Given these concerns, the EBA’s experts do not support the draft resolution and call for its rejection.

On 26 February 2025, the State Service of Geology and Mineral Resources of Ukraine published a draft resolution of the Cabinet of Ministers of Ukraine proposing amendments to Resolution No. 303. In particular, the document envisages the resumption of scheduled and unscheduled inspections of subsoil users whose activities are classified as high-risk.

Experts from the European Business Association have analysed the draft and concluded that the need for legislative amendments due to the risk of so-called “dormant permits” does not fully align with the current situation. The resolution aims to identify and prevent the existence of just 29 such permits; however, more than 300 enterprises would be subjected to inspections.

The EBA’s experts emphasise that current legislation already allows for unscheduled inspections in cases where citizens’ rights, the environment, or national security are at risk. Furthermore, under Ukraine’s Subsoil Code, failure to address violations after they have been identified during inspections is grounds for revoking a special permit. This means that the issue of “dormant permits” can be addressed without the need for large-scale inspections of all subsoil users.

Under martial law, a significant portion of the industry operates in extremely challenging conditions due to security risks, labour shortages, disruptions in logistics, and energy supply issues. The introduction of extensive inspections would create additional administrative and financial burdens, potentially leading to the suspension of production processes.

Given these concerns, the EBA’s experts do not support the draft resolution and call for its rejection.

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