The Association provided its comments to the draft resolution of the Verkhovna Rada of Ukraine

In accordance with the draft resolution of the Verkhovna Rada of Ukraine “On the development of a legislative framework for the creation of preferential conditions for the business of Ukraine’s partner countries within the framework of the Post-War Alliance” (reg. No. 13067 of March 10, 2025), the Cabinet of Ministers of Ukraine should develop and submit draft laws within three months aimed at creating a special legal regime for attracting investments from partner countries that have provided and continue to provide assistance to Ukraine in countering the armed aggression of the Russian Federation, taking into account especially

Thus, the Code of Ukraine on Subsoil and the Law of Ukraine “On Production Sharing Agreements” should be amended to develop mechanisms for reviewing subsoil use licenses, analyzing inefficiently used (“sleeping”) licenses and determining the procedure for their transfer to foreign business entities that have a permanent location or permanent residence in the territory of Ukraine’s partner countries, primarily business entities from the United States of America, with the corresponding obligations to deve to develop the deposits.

The Association provided the Committee of the Verkhovna Rada of Ukraine on Economic Development, which was designated as the Main Committee for the development of the draft resolution of the Verkhovna Rada of Ukraine under reg. No. 13067 dated March 10, 2025, its comments on the above-mentioned draft resolution of the Verkhovna Rada of Ukraine and requested to take them into account when preparing the relevant conclusion.

Comments of the Association:

1. The current legislation of Ukraine does not contain the term “dormant” permit, which makes it impossible to determine exactly what special permits for subsoil use are in question and their current number.

In addition, the Subsoil Code of Ukraine, unlike, for example, the Law of Ukraine “On Oil and Gas”, the Mining Law of Ukraine and the Tax Code of Ukraine, does not contain any definitions of the terms and concepts it refers to.

The introduction of the term “dormant” permit into Ukrainian legislation without defining its concept will lead to a loose interpretation of the law, possible conflicts and litigation in the courts over subsoil use.

2. According to subparagraph 3 of paragraph 2 of Section I of the Law of Ukraine No. 3370-IV dated January 19, 2006 “On Amendments to Certain Legislative Acts of Ukraine on Bringing Them in Compliance with Legislative Acts of Ukraine in the Field of Licensing”, the word “license” in all cases and numbers was excluded from the text of the Subsoil Code of Ukraine.

The current version of the Subsoil Code of Ukraine uses the term “special permit”.

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