The Government has approved the list of underground facilities not related to mineral extraction.

This is part of a large package of documents necessary for the proper completion of the subsoil use reform in Ukraine.

What kind of underground facilities are involved?

Under the current legislation, subsoil may be used not only for the extraction of minerals, but also for the construction of relevant underground facilities. Such structures are used for various purposes, such as oil or gas storage, or for the disposal of production waste, or to prevent flooding of territories after the closure of mines, etc. This ensures an integrated approach to the use of deposits.

However, until now, there was no comprehensive list of such facilities in Ukraine. Therefore, there was a fairly “broad field” for manipulation by unscrupulous companies and interpretation of the rules at their own discretion.

“Ukraine, on its way to the EU, seeks to build a transparent European model of sustainable subsoil use. This is exactly what the reform we have launched is aimed at. Today, the Government is improving the legal framework and eliminating gaps. We are removing opportunities for abuse and, at the same time, creating simple and clear rules for everyone. We are creating conditions for equal access to the sector and establishing safeguards to ensure that such activities do not pose risks to people and do not harm the environment,” commented Ruslan Strilets, Minister of Environmental Protection and Natural Resources.

According to the Minister, the Government’s subsoil use reform includes such concepts as sustainable development and rational use of natural resources. The key goals include raw material security and independence, as well as Ukraine’s integration into the European strategy for the development of critical raw materials until 2030.

In early December 2022, Ukraine adopted the European integration Law No. 2805-IX “On amendments to certain legislative acts of Ukraine to improve legislation in the field of subsoil use”. The document is aimed at deregulating and modernising the rules of doing business in the sector.

In particular, the reform provides for simplification of licensing procedures, digitalisation of the sector, guarantees of predictability for subsoil users, and protection of national interests.

According to Ruslan Strilets, the quality of the reform will affect Ukraine’s economy and its position in international markets. It will also determine whether Ukraine will have enough raw materials to rebuild cities and towns.