Business discussed the reform of subsoil use with the Ministry of Environment

14/ 10/ 2022

On October 12, the European Business Association hosted a meeting of the Subsoil Use Committee with Yevhen Fedorenko, Deputy Minister of Environmental Protection and Natural Resources of Ukraine. The discussion was focused on the subsoil use reform, sustainable development issues, and participation of the Committees experts in drafting regulatory acts. The balance of business interests and environmental protection, a reasonable approach to lawmaking that allows work and business development for the benefit of the state without harming the environment, and the implementation of EU norms, in accordance with Ukraines commitments, are the main priorities of the Ministry. As part of the subsoil use reform, the Ministry of Environmental Protection will focus on transforming the State Service of Geology and Subsoil into a service institution to minimize the influence of the subjective factor, as well as the maximum digitalization of permits. The electronic cabinet of the subsoil user will be launched soon, which will help to significantly reduce paperwork. At the same time, the participants of the meeting stressed certain risks that may arise, particularly, during the transition to the global geodetic coordinate system. Digitalizing, creating a transparent, simple, and understandable system of subsoil use is a priority of the Ministry, which is why it is also planned to introduce a Unified State Geographic Information System with access to 12 databases. Unfortunately, not all novelties can become available during martial law, but after its termination, in addition to the above-mentioned resources, the Interactive map of mineral resources of the construction group will also become available. The Committee members share the opinion of Mr. Fedorenko that the investment attractiveness of the industry can increase due to modern regulation and the use of experience of foreign partners. Besides, the EBA members welcome the plans of the Ministry of Environment to modernize the regulatory framework. According to the Deputy Minister, draft law No. 4187 will soon be finalized for the second reading. The document proposes a number of amendments to some legislative acts of Ukraine to improve legislation in the field of subsoil use. Particularly, it provides for the introduction of the right of full and partial alienation of rights under a special permit by its owner, regulation of the terms of the procedure for obtaining special permits, etc. The EBA experts will be involved in the development of the document after publication to provide comments. The meeting also discussed plans for the formation of the industry strategy for the next 10 years. According to the EBA experts, frequent changes in legislation cause significant losses to business representatives, which is why the initiation of legislative changes should be predictable, not situational, so as not to create difficulties for business. Mr. Fedorenko noted that the plans of the Ministry of Environment in terms of creating a strategy take into account the rebuilding plans of the economy and infrastructure of Ukraine, in particular those announced at the Lugano International Conference on Rebuilding Ukraine, and invited to jointly develop a vision of the strategy. We sincerely thank Mr. Fedorenko for his openness to dialogue and look forward to further constructive cooperation!

The balance of business interests and environmental protection, a reasonable approach to lawmaking that allows work and business development for the benefit of the state without harming the environment, and the implementation of EU norms, in accordance with Ukraine’s commitments, are the main priorities of the Ministry.

As part of the subsoil use reform, the Ministry of Environmental Protection will focus on transforming the State Service of Geology and Subsoil into a service institution to minimize the influence of the subjective factor, as well as the maximum digitalization of permits. The electronic cabinet of the subsoil user will be launched soon, which will help to significantly reduce paperwork. At the same time, the participants of the meeting stressed certain risks that may arise, particularly, during the transition to the global geodetic coordinate system.

Digitalizing, creating a transparent, simple, and understandable system of subsoil use is a priority of the Ministry, which is why it is also planned to introduce a Unified State Geographic Information System with access to 12 databases. Unfortunately, not all novelties can become available during martial law, but after its termination, in addition to the above-mentioned resources, the Interactive map of mineral resources of the construction group will also become available.

The Committee members share the opinion of Mr. Fedorenko that the investment attractiveness of the industry can increase due to modern regulation and the use of experience of foreign partners. Besides, the EBA members welcome the plans of the Ministry of Environment to modernize the regulatory framework.

According to the Deputy Minister, draft law No. 4187 will soon be finalized for the second reading. The document proposes a number of amendments to some legislative acts of Ukraine to improve legislation in the field of subsoil use. Particularly, it provides for the introduction of the right of full and partial alienation of rights under a special permit by its owner, regulation of the terms of the procedure for obtaining special permits, etc. The EBA experts will be involved in the development of the document after publication to provide comments.

The meeting also discussed plans for the formation of the industry strategy for the next 10 years. According to the EBA experts, frequent changes in legislation cause significant losses to business representatives, which is why the initiation of legislative changes should be predictable, not situational, so as not to create difficulties for business. Mr. Fedorenko noted that the plans of the Ministry of Environment in terms of creating a strategy take into account the “rebuilding” plans of the economy and infrastructure of Ukraine, in particular those announced at the Lugano International Conference on Rebuilding Ukraine, and invited to jointly develop a vision of the strategy.

We sincerely thank Mr. Fedorenko for his openness to dialogue and look forward to further constructive cooperation!