Experts: Non-Disclosure of Extraction Data Will Involve Fines
Non-disclosure of information on extraction activities will be punished by fines. This sanction is set out in the Draft Law “On Data Disclosure in Extractive Industries”. It was reported during the press-conference at Ukraine Crisis Media Centre.
According to the participants in the press-conference, this document introduces reporting requirements to production
companies as early as at the project level. “Fines will be imposed for violation of the time limits and established reporting procedure as well as for submission of reports with untrue or incomplete information or refusal to submit them. Companies will be obliged to remedy detected violations”, noted Olena Pavlenko, President, Dixi Group Analytical Centre. She also emphasized that bad-faith entrepreneurs would not manage to hide behind the trade secret and sensitive information. “Under such conditions, everybody will be able to receive information on taxes and other payments, related to each special subsurface use permit. This will be the case even if such activities are carried out by two and more companies under joint activity agreements or production sharing agreements”, stated Roman Nitsovych, Program Manager, DiXi Group. According to him, these standards have been introduced in the USA, the EU, Australia and Canada. It should be mentioned that the Draft Law “On Data Disclosure in Extractive Industries”, prepared by the Ministry of Energy and Coal Industry of Ukraine with support of DiXi Group Analytical Centre and the International Renaissance Foundation, is aimed at combatting corruption and introducing the European operational standards for extractive industries. The Draft Law will allow for introduction of international standards and best practices of transparent reporting in the extraction sector pursuant to the EITI requirements.
