• Українською
  • Subsoil Use Reform

    The goal of the reform is to enable Ukraine to achieve energy independence from import deliveries of natural gas and other minerals, improve the quality and transparency of administrative services in the area of subsoil use, and harmonize Ukrainian laws with EU laws.

    The subsoil use reform is part of the Government's priority of development of the base of raw materials. When put in practice, it will create conditions for equal access to subsoil use, increase transparency, conduct deregulation, enhance institutional capacity, update and simplify access to geological information.

    Why change anything?

    Ukraine is a country with a unique base of raw materials. Today, more than 20,000 fields have been found in Ukraine, where a substantial part can be industrially extracted. This means huge investment potential that should be cultivated.

    The priority of the subsoil use reform is drafting new laws that will be consistent with EU laws and international best practices of implementation, including by using digital technology, and the reform of the State Service of Geology and Subsoil of Ukraine as part of the reform of public administration in Ukraine.

    What does the reform involve?

    1. Creating equal conditions for access to subsoil use

    Equal conditions of subsoil use are a basis for introducing a fair and competitive business environment, attracting foreign investors and raising foreign investment for the development of Ukrainian economy and, as a result, increasing the country's economic potential.

    2. Improving transparency in subsoil use

    It aims to minimize corruption risks in this area, enhance subsoil users' responsibility and strengthen control to ensure that equal, fair, and lawful conditions of subsoil use are observed in Ukraine.

    3. Deregulating subsoil use

    It is a necessary component of a free and independent market that eliminates potential influence to lobby for certain market players' interests and prevents corruption.

    4. Enhancing institutional capacity of government agencies

    The State Service for Geology and Subsoil of Ukraine is to be reformed.

    5. Updating and simplifying access to geological information

    The reform involves providing administrative services online in an automated and transparent manner, simplifying access to and updating geological information, including by digitalizing the entire array of geological information needed both by the subsoil user and all stakeholders. A pilot project, Subsoil User's e-Cabinet, is to be carried out.

    Key achievements

    • Four key amendments made to regulations include canceling the charge for extension of a special license for oil and gas subsoil use, striking out revenue debt from the list of grounds for refusal to extend or modify the license, simplifying authorization by local agencies of subsoil plots licenses for which are auctioned, enabling electronic auctions to sell special subsoil licenses.
    • The National Classification of Mineral Reserves and Resources of the State Subsoil Fund of Ukraine has been adapted.
    • The Law of Ukraine On Promoting Transparency in Extractive Industries has been adopted.
    • A pilot project called Electronic Auctions for Special Subsoil Licenses has started.
    • A new procedure has been approved for the use of geological information, significantly liberalizing legal relationships in this area by making geological information transparent and accessible.

    Goals and objectives for the current year

    • Starting the drafting of a new Subsoil Code as part of implementation of the EU's area-specific project.
    • Launching the Subsoil User's e-Cabinet pilot project to enable gradual digitalization of administrative services such as the grant of subsoil licenses.
    • Conducting a functional examination of SSGS.

    The reform is implemented by

    the Ministry of Ecology and Natural Resources of Ukraine, the State Service for Geology and Subsoil of Ukraine, the Verkhovna Rada of Ukraine, the Cabinet of Ministers of Ukraine, the Association of Gas Producers of Ukraine,  the American Chamber of Commerce in Ukraine, the European Business Association, the Association of Subsoil Uses of Ukraine, the US–Ukraine Business Council

    Documents and useful links