The American Chamber of Commerce in Ukraine calls the Government to consider position of business for improvement of amendments to CMU Resolution on oil & gas subsoil use

Given the results of the last CMU session on March 14, 2018 the American Chamber of Commerce in Ukraine calls the Government to consider position of business for improvement of amendments to CMU Resolution #615 "On Approval of Procedure of Granting Special Permits for Subsoil Use" dated May 30,2011, approved at mentioned CMU session. Experts of Chamber Member-companies believe that current version of amendments proposed by the Ministry of Ecology and Natural Resources of Ukraine does not include subsoil users proposals and prevent simplification of procedure of granting of special permits for subsoil use.

The Chamber repeatedly stressed the necessity to improve the procedure of granting of subsoil use special permits, provide for exclusive and minimum grounds for granting special permits out of auctions, cancel payment for prolongation of special permits and increase of reserves, guarantee legislation stability and prevention of non-systemic amendments to subsoil use conditions. Moreover, introduction of a requirement to conduct Environment Impact Assessment for the purpose of oil&gas geological exploration is unreasonable and does not correspond with the Law of Ukraine “On Environment Impact Assessment”.

The Chamber calls the Government to consider these comments and include them to the text of amendments to relevant CMU Resolution since adoption the current text of the Draft Resolution may cause negative impact on the sector of oil & gas development in Ukraine.

The Chamber emphasizes that the primary task in subsoil sector should be conduction of public, equal and transparent auctions for exploration and production of hydrocarbons in Ukraine under conditions of such an important and strategic goal, envisaged in legislation, as increase of hydrocarbons production in Ukraine.