Comments of 2017

Opening access to geodata as well as simplifying the process of obtaining permits may significantly improve the business climate in Ukraine. It will be much easier for potential investors to objectively evaluate attractiveness of staring an extractive business in Ukraine and its possible scale, otherwise they will choose countries with more advantageous and simpler working environment.

Business of extractive companies is associated with high risk due to both the complex nature of the extraction as a production process and the bureaucracy. According to the estimations provided by the Association of Gas Producers of Ukraine, bringing new deposits into commercial production requires approximately 40 permits to be issued by 16 different authorities.

Last week, a probable sale of a stake of Devon to a Russian businessman Pavel Fux and non-renewal of two special permits for subsoil use of Evraz Sukha Balka were revealed. These companies are among those who ignored the submission of information under the Extractive Industries Transparency Initiative (EITI), including information involving the disclosure of final beneficial owners.

For the first time over a long period, the blocking of anthracite coal shipments from the occupied territory has put the issue of dependence on this fuel type at the top of the agenda.

A new energy strategy is needed, and it should be adopted at least as it is. Under the conditions when Ministers of Energy quickly replace each other, and their vision of the Ukrainian energy sector development does not always coincide, the success of reforms largely depends on the availability of a long-term development plan.