On 18 June 2013 the Parliament of Ukraine adopted Law No.331-VII (the "Amendments") amending the Law of Ukraine "On Production Sharing Agreements" (the "PSA Law") regulating execution and performance of production sharing agreements (the "PSA"). The Amendments have been signed by the President of Ukraine and became effective.
The Amendments cure several defects remained in the PSA Law since its last amendments in 2012. In particular, the Amendments: re-established the Interagency Commission as the key authority responsible for the PSA procedures. The Interagency Commission is composed of representatives of state agencies, MPs and local authorities. The Cabinet of Ministers of Ukraine approves a regulation on the Interagency Commission and appoints a central body of executive power as a working organ of the Interagency Commission, which is responsible for informational, organizational, and financial support of the Interagency Commission; re-established provisions entitling parties to a PSA to create a Management Committee or other management body responsible for management and coordination of activities between the parties under the PSA; and re-established authorising the Cabinet of Ministers of Ukraine, representing the State of Ukraine in the PSA, to delegate its certain powers related to performance of the PSA to other central bodies of executive power.
The Amendments also specified that in bilingual PSAs Ukrainian language supersedes foreign language.
For further information please contact senior partner Armen Khachaturyan,
partner Tamara Lukanina and associate Yaroslav Petrov