New Amendments Proposed to Subsoil Use Legislation

Members of the Parliament of Ukraine O.V. Bondarenko, P.V. Yakymenko, A.V. Motovylovets (7 MPs in total) have registered in the Verkhovna Rada of Ukraine:

1. Draft Law “On Amendments to the Code of Ukraine on Subsoil Aimed at Improving the Legal Regulation of Subsoil Use and Ensuring Guarantees for Investors” (Reg. No. 14249 of 26 November 2025)

The draft law proposes amendments to several provisions of the Code of Ukraine on Subsoil regarding the following issues:

1. Improving the regulation of automatic extension of subsoil-use permits valid on the date of introduction of martial law in Ukraine, as well as the deadlines for work established by the corresponding subsoil-use agreements, and other terms defined by the respective subsoil-use permits.
2. Regulating the procedure for holding auctions (electronic bidding) with the participation of a single bidder.
3. Introducing protection mechanisms against legislative changes for subsoil areas (mineral deposits) of strategic and/or critical importance.
4. Improving the regulation of transitional arrangements for obtaining subsoil-use permits by holders of certain types of existing subsoil-use permits.

The draft law also proposes to set out in the transitional provisions of the Code of Ukraine on Subsoil a clear procedure for the actions of the permitting authority regarding the automatic extension of subsoil-use permits valid on the date of introduction of martial law, and the deadlines for work established by the corresponding subsoil-use agreements and subsoil-use permits.

Expected outcomes from the adoption of the draft law:

1. Ensuring unambiguous interpretation of the current legislation in the field of subsoil use.
2. Removing excessive barriers for potential subsoil users, in particular those related to the requirement that at least two bidders participate in auctions for the sale of subsoil-use permits, and mitigating the resulting risks for stable subsoil use.
3. Ensuring regulatory stability for enterprises investing in the development of subsoil resources involving strategic and/or critical minerals and components.
4. Ensuring uninterrupted operation of extractive enterprises during and after martial law.
5. Creating prerequisites for the development of the extractive industry under existing subsoil-use permits and increasing tax revenues.

2. Draft Law “On Amendments to Certain Legislative Acts of Ukraine Regarding Clarification of Specific Provisions in the Field of Subsoil Use” (Reg. No. 14250 of 26 November 2025)

This draft law, aimed at terminological, legal-technical and practical clarification of legislation in the field of subsoil use, proposes amendments to provisions of the Code of Ukraine on Subsoil, the Mining Law of Ukraine, the Law of Ukraine “On Oil and Gas,” and the Law of Ukraine “On Urban Planning Regulation,” concerning the following issues:

1. Defining the term “subsoil plot” at the level of the Code of Ukraine on Subsoil and clarifying the corresponding term for oil and gas bearing subsoil.
2. Establishing legislative regulation of the boundaries of a subsoil-use permit.
3. Mechanisms for aligning subsoil-use activities with environmental legislation and cultural heritage protection requirements, including granting the permitting authority the power to include information on protected areas, World Heritage sites, their territories and buffer zones in the auction documentation package, using relevant sets of geospatial data.
4. Clarifying legal regulation in the field of geological exploration and industrial development of oil and gas bearing subsoil.
5. Clarifying various additional provisions in the field of subsoil use aimed at eliminating legal-technical shortcomings in regulation.

Expected outcomes from the adoption of the draft law:

1. Ensuring unambiguous interpretation of the current legislation in the field of subsoil use and eliminating conflicting legal norms.
2. Establishing mechanisms to align the needs of the subsoil-use industry with environmental legislation and cultural heritage legislation.
3. Clarifying permitting procedures in the field of subsoil use to ensure their more transparent application and reduce risks of abuse.
4. Creating prerequisites for the growth of the extractive industry and increasing tax revenues.

Image source: freepik.com