REUTERS
The relevant resolution was adopted at a government meeting on Thursday, July 26.
The Cabinet of Ministers of Ukraine approved the launch from September 1 of a pilot project for holding e-auctions for subsoil use.
It also has adopted a resolution on the disclosure of geological information
"Now we are adopting a package of very important decisions that completely destroy corruption in the country's subsoil use. I realize that this step will be criticized in certain circles and we will make even more enemies. But are honest to Ukraine and Ukrainians," Ukrainian Prime Minister Volodymyr Groysman said.
The relevant decision was made at a government meeting on Thursday, July 26.
Acting Head of Ukraine's State Service of Geology and Mineral Resources Oleh Kyryliuk says that the proposed system of electronic auctions has a number of advantages over the existing auctions.
"First and foremost, it is publicity and openness, ability to track all stages of permits sale, use of an electronic platform, and opportunity to participate in trades being in any place. In addition, the system envisages honest and open rules, formation of a real market price, reduction in auctioning period, and one of the most important things is that there is no need to get into contact with any officials," he said.
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Kyryliuk added that to participate in auctions, a potential subsoil user must log on to the electronic auction website, register for each selected lot, and make a guaranteed contribution, which is 20% of the initial lot value.
"In fact, electronic trading could be observed anywhere in the world where the internet is available," he said.
He also noted that the government's decision liberalizes access to geological data, which provides for creation of a state register of such information, digitizing secondary geological information, abolition of fees for the use of the relevant data, granting the right to dispose of one's own geological information, and improvement of calculation of geological information cost.
"Having disclosed and digitized geological data, we will be able to provide full information to all investors about minerals located in Ukraine, which will attract huge investment to our country," Kyryliuk added.
As UNIAN reported earlier, the state-owned and private extracting companies in Ukraine increased gas output by 3.1% in 2017 from 2016, to 20.8 billion cubic meters. The country reduced gas consumption in 2017 by 4%, to 31.9 billion cubic meters.
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Earlier, due to the lack of auctions, the activities of the State Service of Geology and Mineral Resources were sharply criticized by market players.
In mid-May, Ukrainian Prosecutor General Yuriy Lutsenko said that over the past four years, the Service had issued about 700 special permits for the use of mineral resources, including 43 documents issued on the results of auctions.
As for the recent notorious cases related to issuing permits for the development of lithium and oil deposits in Donetsk and Poltava regions without bidding, the Prosecutor General's Office filed a lawsuit with Kyiv's District Administrative Court to recognize the permits unlawful and repeal the relevant orders.
According to Lutsenko, the government is obliged to ensure in full open competitive auctions for any natural resources.