The Cabinet of Ministers established a special procedure for the sale of strategic subsoil

Following the results of the meeting on July 26, the Cabinet of Ministers adopted a draft resolution about amendments to certain resolutions of the Cabinet of Ministers of Ukraine on subsoil use, which establishes a separate procedure for auctioning subsoil plots that are of strategic importance for the sustainable development of the economy and the state’s defense capability.

he Ministry of Environmental Protection and Natural Resources of Ukraine reported about it on its Telegram channel.

According to the announcement of the project, that appeared on the department’s website on July 12, it is about changes to 4 regulatory acts:

• The procedure for granting special permits for subsoil use (Resolution of the Cabinet of Ministers of Ukraine dated May 30, 2011 No. 615);
• The procedure for holding auctions for the sale of special permits for subsoil use (Resolution of the Cabinet of Ministers of Ukraine dated September 23, 2020 No. 993);
• Methods of determining the initial sale price at the auction of a special permit for the right to use subsoil (Resolution of the Cabinet of Ministers of Ukraine dated October 15, 2004 No. 1374);
• Methods of determining the value of geological information obtained at the expense of the state budget (Resolution of the Cabinet of Ministers of Ukraine dated 10.12.2008 No. 1075).

Among the main changes are the requirement to provide information about the ultimate beneficial owner, the shortening of several terms related to the announcement of the first and subsequent auctions, and the exclusion of the possibility of granting permits without an auction for the purpose of geological study and extraction of local minerals importance.

The method of determining the initial sale price of a special permit and the amount of the guaranteed contribution will also change significantly.

“The size of the guarantee fee is set, which is 20% of the lot initial price, but not less than UAH 5 million for minerals that are of strategic importance for the sustainable development of the economy and the state’s defense capability, UAH 10 million for hydrocarbons, and UAH 500 thousand for other minerals (with some exceptions. – Ed.)”, the message says.

As for the initial price of the site, where mineral reserves are not approved in the established order or are not taken into account by the state balance of minerals, it will depend on its area and the category of minerals.

There was also a fixed fee for secondary geological information in the amount of 6% of a special permit price.

The State Geology and Subsoil Service of Ukraine issued in 2021, a record number of new special permits for subsoil development – 377, which is 2.5 times more than in previous years. Approximately one third of the special permits were issued for the development and extraction of minerals needed for the construction industry.