Over the past three years, Ukrainian subsoil use has undergone many changes, according to Oleh Bondarenko, Chairman of the Verkhovna Rada Committee on Environmental Policy and Subsoil Use. However, the reform of the industry is not complete. In an exclusive interview with journalist Oleksiy Bukhalo, the parliamentarian spoke about the new law adopted in December last year, what changes in the legislation to expect in the near future, and gave some advice to subsoil users.
The Amber Law and the Law No. 2805 adopted last December introduced significant changes to Ukrainian subsoil use.
У 20In 19, an international group was set up to write a new Subsoil Code. Unfortunately, the group worked for three years, spent a lot of international money, and came no closer to writing it.
To accelerate the reform, the Committee, headed by Oleh Bondarenko, revised Law 2805, which was passed by the Verkhovna Rada.
It "changed the legislation on subsoil use, but did not replace the Subsoil Code," the Committee chairman summarized.
Law 2805: what will change for subsoil users
From now on, investors will be attracted according to the new rules, emphasizes Mr. Bondarenko. They will not be changed several times a year, as in the case of government resolutions.
Entrepreneurs will be able to purchase special permits for the extraction of minerals of national and local importance. On the one hand, large sums of money for the licenses will go to the state budget, and on the other hand, rents for mining will be paid to local budgets.
The law protects subsoil users from state authorities. We have established how licenses are issued, revoked and extended. We have protected the rights of subsoil users so that this special permit is not taken away at the will of any official.
How the Law will affect citizens
In the future, a portion of the revenues from mining will be accumulated in citizens' accounts (economic passports). Upon reaching the age of majority, Ukrainians will receive a certain amount. This provision is intended for the future, explains the Committee Chairman, as the passport law has not yet been adopted by the Parliament.
Amber mining: has it been legalized?
In Ukraine, only two state-owned enterprises were legally mining amber until 2019.
By adopting the law, we made it possible to obtain special permits (for amber mining - ed.) in a simplified manner. Over the entire period of the law's validity, as many as 85 subsoil users have received these permits, which is perhaps the largest number for a particular mineral.
However, in addition to obtaining special permits under a simplified procedure, the Law was supposed to solve the problem of reclamation of disturbed land. An investor, using the latest technologies, would have brought such land back to normal, overcoming the environmental problem. Oleg Bondarenko believes that this issue has been postponed.
But it is worth noting that the Amber Galbin group of companies currently holds twenty special permits for amber mining. All the sites are on disturbed lands. After the extraction of the stone, the companies will carry out reclamation, as stipulated by the licenses. This will restore the soil cover.
It is better to negotiate rather than go to court
After an entrepreneur obtains a special permit, he needs to settle the issue with the land user. He can get the land plot for rent, ownership or under an easement agreement.
In the case of amber extraction, Article 97-1 of the Land Code provides for the signing of a standard agreement with the approval of the land user. But they may not give it. Such cases do happen, agrees Bondarenko, but they are rare.
What to do?
The land plot can be withdrawn in accordance with the newly adopted part 3 of Article 149 of the Land Code. It applies exclusively to state and municipal property, emphasizes Oleg Bondarenko. The subsoil user applies to the authorities responsible for land disposal, and they file a lawsuit in court.
However, according to the Committee's chairman, it is easier to reach an agreement. The trial may take years, and this will affect the attractiveness of the facility.
The parliamentarian also advises investors to calculate their risks in advance before they start investing huge amounts of money. In particular, to find out whether the land plot or part of it is located in a nature reserve fund, as well as whether there will be problems with land users.
Ukrainian subsoil use: what to expect
In Europe, the subsoil use sector is more regulated than in Ukraine, and it takes longer to obtain approvals and permits, says Oleg Bondarenko.
At the same time, entrepreneurs should prepare for additional simplifications, such as the environmental impact assessment procedure. A draft law is currently under consideration by the Committee that would reduce the timeframe, according to Mr. Bondarenko, to about 80 days.
On the other hand, this draft law establishes clear rules that will not allow officials to return documents without any reason. As a result, subsoil users will start working on time.
At the end of the interview, Oleg Bondarenko advised entrepreneurs to submit their proposals and comments to the Committee through subsoil user associations.