Approved reporting forms are a step towards greater transparency in production
After almost two years of processing and coordination, the government has finally approved reporting forms for extractive companies developed, inter alia, with the participation of DiXi Group experts. Business, the public and the state have received a specific tool to implement the Extractive Industries Transparency Initiative (EITI) and the requirements of EU directives.
Now we can expect the following as of the beginning of reporting by extractive companies for 2018-2019 according to new forms:
- report by companies on payments to the state;
- consolidated report of companies to the state;
- report on payments to the state, which are drawn up by recipients of payments.
Within the framework of reporting, companies will submit information on the beneficial owners, a description of project activities, production volumes, taxes paid by projects, including rental and environmental tax, as well as funds spent on hydrocarbon transportation, employment and gender distribution among employees, etc.
This practice will allow to reduce corruption risks, increase Ukraine’s investment attractiveness at the international level, and build an effective dialogue between business and communities at the local level, which is based on awareness of the activities and impact of extractive companies.
The next steps needed to increase the transparency of the sector are the formation of the EITI Implementation Multilateral Group, defending in parliament the budget expenditures reserved for the development of subsequent reports under the EITI Standard and the electronic reporting system as well as the adoption of Bill No. 3790, which introduces new requirements of the EITI Standard 2019 (disclosure of extraction contracts if the government is one of the parties to it).
EITI is an independent, voluntarily and internationally supported standard implemented in 54 countries of the entire world, including Ukraine. In order to implement this standard and in pursuance of the Association Agreement with the EU in terms of reporting by extractive companies (Directive 2013/34/EU), the Law “On Ensuring Transparency in Extractive Industries” was adopted in 2018.
