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Ukraine’s Relief and Recovery Plan: What to Be Changed in the Field of Subsoil Use

At the end of April 2022, the National Council for the Recovery of Ukraine from the War began its work, the purpose of which is to prepare a comprehensive Post-War Recovery and Development Plan for Ukraine. For the relevant work, expert working groups were created, particularly the working group on "Environmental safety". The findings of the working group, which were presented to the public and published on the official website of the Ministry of environment and natural resources of Ukraine on July 4, 2022, are aimed at achieving nine key goals, including balanced use of natural resources. The National Council also published the same materials for Recovery as a part of the draft National Recovery Plan. In this issue, we will look at the proposals, concerning subsoil use in Ukraine.

Deregulation and digitization of subsoil use

Key elements of the Recovery Plan, which concern the sphere of subsoil use, are included in strategic direction No. 3 "Balanced use of natural resources in conditions of increased demand and limited supply", and primarily aimed at creating conditions for the use of natural resources for restoration without neglecting the environmental concerns. One of the important projects in this direction is deregulation and simplification of access to the subsoil while preserving environmental procedures and public participation in decision-making, which, among other things, includes the following measures:

  • introduction of a single permit for all stages of geological exploration and extraction for all minerals
  • reduction of the list of cases in which it is necessary to obtain a claim mine concession additionally
  • abolition of the need to obtain prior approvals for the acquisition of the right to use the subsoil
  • ensuring the sustainability of permitting procedures due to their consolidation at the level of the Code of Ukraine on Subsoil
  • simplification of access to land plots necessary for the implementation of projects in the extractive industries, as well as access to geological information
  • digitization of administrative services for subsoil users

Draft law No. 4187 "On introduction to some legislative acts of Ukraine on improving legislation in the field of subsoil use" is aimed at implementing the mentioned project, which, for the most part, requires legislative changes. It is included in the list of legislative acts necessary for the implementation of the plan. It is planned that such a law will be adopted by January 2023. The list also includes the by-laws necessary for digitalizing individual services (the deadline for adoption is January 2023).

Expansion of the mineral and raw material base of Ukraine and introduction of regulation for the use of technogenic deposits An essential element for ensuring sustainable subsoil use is the expansion of the mineral and raw material base of Ukraine, which is named as a separate project for implementation within direction No.3. It is assumed that the focus of geological surveys will be made on exploring mineral deposits of building materials, hydrocarbonsmetal ore, and underground water deposits, necessary for ensuring energy independence and secure access to drinking water. The implementation of the mentioned project will also require changes to the National program for the development of the mineral resource base of Ukraine for the period until 2030. The draft law, aimed at making changes to the specified program, is included in the list of legislative acts, necessary to achieve strategic goals in direction No. 3 (adoption deadline - January 2023). In addition, one of the strategic areas at the second stage of the implementation of the recovery plan (2023-2025) is to stimulate the prevention of formation and increase the amount of processed and reused mining industry waste.

Involvement in the development of technogenic deposits is one of the projects provided for in direction No.3 and provides for the identification of objects for the further development of technogenic deposits, which will allow increasing the processing and reuse of waste obtained during the extraction of minerals. This approach will not only increase the number of mineral resources available for processing but will also reduce the negative impact of mining industry waste on the environment. Among other things, for the implementation of the mentioned project, it is proposed to make changes to the National program for the development of the mineral resource base of Ukraine for the period until 2030 in order to stimulate an increase in the volume of processed and reused waste. The list of legislative acts in direction No. 3 includes amendments to the Code of Ukraine on the Subsoil regarding the status of technogenic deposits, as well as implementing by-laws - which require development and are planned for adoption by December 2025.

Resolving the issue of waste management in extractive industries

The plan contains another task, related to the implementation of the task in terms of the development of technogenic deposits – resolving the issue of waste management in extractive industries. The adoption of the relevant Law of Ukraine “On Waste Management in Extractive Industries” is included in the list of legislative acts that are necessary for the implementation of goals under direction No.2 "Environmental safety and effective waste management", as well as under direction No.3 "Balanced use of natural resources in conditions of increased demand and limited supply".

It is assumed that the mentioned Project will determine the principles of waste management systems in extractive industries, which will allow reducing the industry's negative impact on the environment and human health. In addition, the purpose of adopting the law is to harmonize Ukrainian legislation with European legislation and transition to a circular economy. Development of the draft law is already underway and is scheduled to be completed in 2023, and it is planned that the law will be adopted by the end of 2025.

In addition to the mentioned draft law, which is directly related to the field of subsoil use, the Recovery Plan also contains several projects aimed at protecting of the environment from negative impact. In particular, one of the tasks under direction 5 "Effective state management in the field of environmental protection and nature management" is the adoption by the end of 2022 of the Law of Ukraine "On State Environmental Control". In addition, the Plan envisages the development and introduction of amendments to the Law of Ukraine "On Environmental Impact Assessment" to bring the legislation on environmental impact assessment closer to the acquis communautaire and simplify the specified procedure. Adoption of the corresponding law is planned until the end of 2025.

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