Prozorro.Sale

On September 23, 2020, it became known that the Cabinet of Ministers approved two important documents for subsoil users:

- the permanent procedure for holding auctions for the sale of special permits for the subsoil use;
- the updated Methodology for calculating the starting price of a special permit for the subsoil use.

Both of them were developed with the participation of the Ministry of Environmental Protection and Natural Resources of Ukraine, as well as industry experts, and make the market for the sale of special permits more transparent and fair.

What to Expect for Market Participants?

Here are the main changes that will take place in the market for the sale of subsoil use permits:

1. From now on, special permits will be sold exclusively using open online auctions in the Prozorro Sale. This will eliminate the likelihood of controversial issues or fraud, as well as increase the profit from the sale of permits (individual auctions in 2020 showed the 15-fold increase in the starting price of lots). According to the state's expectations, the implementation of permits in this way will bring more than UAH 800 million to the state budget.
2. The initial price of the special permit will be calculated transparently by analyzing objective indicators:

- - a fixed price per unit of marketable products;
  - an availability of resources and reserves for the selected field.

During the calculations, subjective data, the reliability of which is difficult to verify: operating costs, annual income of the enterprise, capital investments, etc, will no longer be used.

As a reminder, 36 new amber plots will appear in the Prozorro.Sale soon.

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