The seminar was attended by the People´s Deputies of Ukraine, the representatives of the State Tax Administration, State Committee on Land Resources of Ukraine, State Customs Service, State Committee of Ukraine for Industrial Safety, Labor Protection and Mountain Supervision, USAID Project "Consulting Assistance of Ukrainian Government regarding Agreement on Produce Allocation".
The Verkhovna Rada of Ukraine adopted the Law "On Agreements appertaining to Produce Allocation" in Year 1999. The Law is aimed at creation of favourable conditions for making investments into search, development and extraction of minerals at the territory of Ukraine, its continental shelf and exclusive economic zone due to the principles defined by the agreements on produce allocation.
It is reasonable to apply the agreements on produce allocation in such fields as oil-, and gas-producing industry, development and extraction of other mineral resources, including different ores and coal.
Amendments and supplements introduced to the effective legislation are aimed at enhancement of transparency and preciseness of the process regarding delivery and application of agreements on produce allocation. Inter alia, they clearly define the contractual parties, namely, the State represented by the Cabinet of Ministers of Ukraine, and the investor. It is also envisaged that the State is to provide the investor with all necessary permits before the start of works due to the relevant agreement. The amendments also define the function and competence of the local self-government bodies.
In the end of the discussion, the participants of the seminar resolved to forward the Bill for further elaboration