The reform is aimed to achieve Ukraine’s energy independence from imports of natural gas and other minerals, to improve the quality and increase the transparency of administrative services associated with natural resource use and to harmonise Ukrainian legislation with the EU laws.
The natural resource use reform is one of the Government’s top priorities for the mineral resource base development. Implementation of this reform requires ensuring equal access to natural resource use, increasing transparency, deregulation, institutional empowerment, updating and simplifying access to geological information.
Ukraine has a unique mineral resource base. More than 20,000 deposits have been discovered in the country’s interior, with many of them having commercial significance. It means a huge investment potential that must be developed.
The priority of the natural resource use reform is to develop new legislation consistent with the EU laws and the world’s best practices in implementation, including the use of digital technology and the reform of the State Service for Geology and Mineral Resources of Ukraine as part of the public administration reform in Ukraine.
1. Ensuring equal access to natural resource use
Equal access to natural resource use is fundamental for the introduction of a fair and competitive business environment, attracting foreign investments for the development of Ukrainian economy and, hence, the growth of the country’s economic potential.
2. Increasing natural resource use transparency
The aim is to minimise corruption risks in this area, to increase the level of responsibility of natural resource users and to enhance monitoring of equal, fair and lawful natural resource use in Ukraine.
3. Deregulation of natural resource use
It is a prerequisite for the existence of a free and independent market, the elimination of any potential for lobbying the interests of certain market players and to prevent corruption.
4. Institutional empowerment of public authorities
It is planned to reform the State Service for Geology and Mineral Resources of Ukraine.
5. Updating and simplifying access to geological information
The reform includes the provision of automated and transparent administrative services online, updating and simplifying access to geological information, including by digitising all geological information required for both natural resource users and all stakeholders. It is planned to launch pilot project Natural Resource User E-Account.
Four key changes to regulations: the fee for extending a special permit for the use of oil and gas deposits has been cancelled; tax debts have been excluded from the list of grounds for denial of permit extension and amendments; the procedure for public approval of auctioning of natural resource areas has been simplified; the conditions for e-auctions for the sale of authorisations for natural resource use have been created.
The National Classification of Mineral Reserves and Resources of the State Subsoil Fund of Ukraine has been adapted.
Law of Ukraine “On Ensuring Transparency in Extractive Industries” has been adopted.
Pilot project E-auctions for the Sale of Special Permits for Natural Resource Use has been launched.
A new procedure for the management of geological information has been approved significantly deregulating legal relations in the area by ensuring transparency and accessibility of geological information.
Starting the development of a new Mineral Resources Code as part of the EU project.
Launching pilot project Natural Resource User E-Account to ensure gradual digitisation of administrative services associated with the issuance of natural resource use authorisations.
Performing functional assessment of the State Service of Geology and Mineral Resources of Ukraine.
Ministry of Ecology and Natural Resources of Ukraine
State Service of Geology and Mineral Resources of Ukraine
Verkhovna Rada (Parliament) of Ukraine
Cabinet of Ministers of Ukraine
Association of Gas Producers of Ukraine
American Chamber of Commerce in Ukraine
Association of Subsoil Users of Ukraine
U.S.—Ukrainian Business Council
Association Agreement between Ukraine and the European Union
The Concept of Development of the Gas Production Industry of Ukraine up to 2020 and Action Plans