Ukraine: permits for underground natural resources in 2009

On 17 June 2009, a stricter regime was introduced for acquiring special permits to exploit subterranean natural resources.

The regime adopted by the Cabinet of Ministers limits the grant of permits without following the mandatory auction procedure to those for:

• public and private sector companies (where the state owns more than 60% of the shares) to produce natural resources
• public and private sector companies (where the state owns more than 60% of the shares) to explore for natural resources either at their own expense or at the expense of the state budget (eg. where a special permit is issued under a public procurement contract)
• public sector institutions involved in general health or health resorts to explore and produce natural medical resources
• private sector companies with a medical infrastructure (where the state owns more than 60% of the shares) to explore and produce natural medical resources to be used for purely medical purposes
• public sector and privatised companies whose main business is producing and processing natural resources to extend the area covered by their permit as it has been exhausted

Other changes include:

• no longer giving any preference to owners or lessees of integral property complexes
• not allowing special permits to be transferred to charter funds of corporate joint ventures or any other association in which the permit holder participates
• only allowing special permits to be re-issued where permit holder has changed its name or location
• preventing the Ministry of Environmental Protection from changing the terms and conditions of access to natural resources specified in the permit
• authorising all decisions regarding the extension, re-issue, suspension, renewal or annulment of special permits to be taken by an interdepartmental group (whose members are appointed by the Cabinet of Ministers) in accordance with rules approved by the Ministry of Environmental Protection

Law: Cabinet of Ministers Resolution No. 608 of 17 June 2009 “On the Procedure for Issuance of Special Permits for Exploitation of Subterranean Natural Resources in 2009”