On 21 July 2010, the Cabinet of Ministers of Ukraine (CMU) adopted a new annual procedure for holding auctions for the sale of the special permits for subsoil use in 2010 (the "Procedure"). The Procedure became effective on 9 August.

Analysis of its text shows that the Procedure has become less transparent (in comparison to that, which was adopted in 2009) due to the following reasons:

  • An auction announcement should only be published in the Government's newspaper  "Uryadovyi Kuryer" (previously this could be placed in the local printed mass media and on the Ministry of Environment's official website);
  • Minutes of the auction no longer have be posted on the  Ministry of Environment's official website;
  • The official auction announcement does not need to contain  special terms and conditions for subsoil use;
  • The auction committee (which is established and appointed by CMU) may now determine the scope of the information to must be submitted by the bidders (previously, the full list of the documents was set  by way of a CMU resolution);
  • CMU may declare results of an auction void at its own discretion (previously, the auction results could only be challenged in court).


The Procedure also introduces some positive changes:

  • The list of the central governmental bodies, responsible for providing consents for the issuing of the special permits, has been reduced;
  • The applicants may apply to include certain blocks into the auction list and obtain the necessary regulatory permits for these. However, the final decision shall be taken by the Ministry of Environment;
  • The bidders no longer need to submit the information: (a) on the employees, their qualifications and experience and (b) related to other subsoil plots in use by the applicant;
  • The winner of the auction has 30 days to pay all of the necessary fees and the price of the special permit, however, this time period may be extended by the auction committee by up to 60 days, if the winner provides reasonable justification for the delay in payment.

Other changes include:

  • A bid may be refused by the auction committee if the bidder fails to comply with the work programmes on other subsoil plots in its use or the bidder has not rectified its previous violations of the subsoil use legislation within the time limits established by the supervising bodies.

Law: Resolution of the Cabinet of Ministers of Ukraine No. 662 dated 21 July 2010 "On Procedure for Holding Auctions for the Sale of Special Permits for Subsoil Use in 2010."

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

The original publication date for this article was 10/08/2010.