On 21 October 2011 the Parliament of Ukraine amended the Law of Ukraine "On Production Sharing Agreements" as to the list of subsoil resources plots. The amendment was signed by the President on 11 November 2011 and shall come into force upon official publication.
The changes provide for removal from the Law "On Production Sharing Agreements" references to the list of subsoil resources (mineral deposits) plots that can be subjected to Production Sharing Agreements and shall be approved by the Cabinet of Ministers of Ukraine. According to the amended law, the investor may apply to the Cabinet of Ministers of Ukraine or the Interdepartmental Commission with the proposal to conduct a tender for entering into Production Sharing Agreements on specific plots of subsoil resources instead of the suggestion to include them in the list first.
The legislative changes were prompted primarily by the fact that, since the list approval, the tenders for entering into Production Sharing Agreements have not been announced on any plot from the list. In addition, due to the inclusion of such plots into the list, they have not been given for use on general terms of subsoil utilization either to state or private companies. This legislative development is positively met by the investor community.
For further information please contact
Yaroslav Petrov, Associate.