The Innovation and Investment Paradigm of Acquiring Subsoil Use Rights in the Conditions of the Post-War Recovery of Ukraine’s Economy
DOI:
https://doi.org/10.15407/scine19.05.003Keywords:
subsoils, use rights, special license, investments, and post-war recovery.Abstract
Introduction. By 2022, the share of the subsoil use accounted for 5.6% of Ukraine’s GDP and provided jobs for more than 200,000 people. In the conditions of post-war recovery, Ukraine will need new approaches to the development of investment-attractive economic and legal mechanisms in this area, given that our country possesses extremely valuable natural resources, the use of which in the post-war conditions of economic recovery for overcoming the recession-related problems is of global importance. In addition, both foreign private businesses and countries have shown interest in the use of Ukrainian subsoil resources.
Problem Statement. The main, problems associated with the formation of the post-war system of subsoil use rights in the modern economic conditions are as follows: insufficient investment potential of the mining industry; conflicts and non-compliance of the applicable national legislation with the requirements of EU directives; extreme underdevelopment of subsoil use investment projects for the creation of industries with a high added value.
Purpose. The purpose is to study the condition the prospects of the economic and legal mechanism for the use of subsoils in the conditions of the post-war recovery of Ukraine, based on the symbiosis of innovation and investment attractiveness and ecological and social orientation of this sphere.
Material and Methods. General scholarly research and special legal methods of research of economic and legal phenomena and categories; the study of economic relations in the mining industry with the use of the system analysis and the formal legal method.
Results. The relations and the state of the regulatory legal framework that governs the subsoil use relations have been analyzed. Problematic issues in the mechanism of providing subsoil plots for use have been identified and ways to address them have been proposed. The need to improve the legal support of the permit system and investment mechanisms for the use of subsoil in the conditions of the post-war recovery of Ukraine’s economy in certain areas has been justified.
Conclusions. An innovative investment paradigm of subsoil use, which serves as an impetus for law-making activities and further scholarly research has been proposed.
Downloads
References
Verkhovna Rada of Ukraine. (2021). On the State Budget of Ukraine for 2022. (Law No. 1928-IX., December 2). URL: https://zakon.rada.gov.ua/laws/show/1928-20#Text [in Ukrainian] (Last accessed: 20.11.2022).
EkoZagroza. Dashboard with data on environmental threats. URL: https://ecozagroza.gov.ua/ [in Ukrainian] (Last accessed: 01.12.2022).
Vivoda, V. (2017). Determinants of Foreign Direct Investment in the Mining Industry. In: O’Callaghan, T., Graetz, G. (Еds.) Mining in the Asia-Pacific. The Political Economy of the Asia Pacific. Springer, Cham. https://doi.org/10.1007/978- 3-319-61395-6_2
Tienhaara, K. (2006). Mineral investment and the regulation of the environment in developing countries: lessons from Ghana. Int Environ Agreements, 6, 371—394. https://doi.org/10.1007/s10784-006-9010-6
Li, B. (2022). The Involvement of Private Equity Fund into Chinese Mining Industry Investment. American Journal of Industrial and Business Management, 12, 1469—1479. https://doi.org/10.4236/ajibm.2022.1210081
Botswana Mining Investment and Governance Review Authors/Editors: World Bank Group. https://doi.org/10.1596/ 25225
Regulation of access to oil and gas-bearing subsoil. Green book. BRDO Effective Regulation Office. URL: https://regulation. gov.ua/book/109-zelena-kniga-reguluvanna-dostupu-do-naftogazonosnih-nadr [in Ukrainian]. (Last accessed: 20.11.2022).
The Ministry has started the development of a new Code on Subsoil. (04.08.2020). URL: https://mepr.gov.ua/news/ 35678.html [in Ukrainian]. (Last accessed: 20.11.2022).
Draft Law on Amendments to Certain Legislative Acts of Ukraine on Support for the Development of Domestic Subsoil Use Industries (2020) No. 4187 October 5. URL: http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=70117 [in Ukrainian]. (Last accessed: 20.11.2022).
Verkhovna Rada of Ukraine (2020). On the Recommendations of the parliamentary hearings on the topic: “Priorities of the environmental policy of the Verkhovna Rada of Ukraine for the next five years” (Resolution No. 457-IX, January 14). The Official Bulletin of the Verkhovna Rada of Ukraine, No. 30 [in Ukrainian].
The draft of the Code of Ukraine on subsoil. URL: https://mepr.gov.ua/files/.pdf [in Ukrainian]. (Last accessed: 20.11.2022).
DiXi Group turned to the Ministry of Environment with proposals for a new edition of the Subsoil Code. (25.03.2021). URL: https://ua-energy.org/uk/posts/dixi-group-zvernulas-do-mindovkillia-iz-propozytsiiamy-do-novoi-redaktsii-kodeksupro-nadra [in Ukrainian] (Last accessed: 20.11.2022).
NAPC has identified corruption-inducing factors in the draft Code of Ukraine on the Subsoil. URL: https://ua-energy. org/uk/posts/nazk-vyiavylo-koruptsiohenni-faktory-v-proiekti-kodeksu-ukrainy-pro-nadra [in Ukrainian] (Last accessed: 20.11.2022).
National Security and Defense Council of Ukraine (2021). On stimulating the search, extraction and beneficiation of minerals that are of strategic importance for the sustainable development of the economy and the defense capability of the state. (Decision, July 16, implemented by Decree of the President of Ukraine (2021) No. 306, July 23). Government Courier dated 07/27/2021 — No. 143 [in Ukrainian].
The system of monitoring the use of subsoil was presented in the Office of the President of Ukraine. URL: https://www. rnbo.gov.ua/ua/Diialnist/5184.html [in Ukrainian] (Last accessed: 20.11.2022).
Subsoil use reform. URL: https://www.kmu.gov.ua/diyalnist/reformi/ekonomichne-zrostannya/reforma-nadrokoristuvannya [in Ukrainian] (Last accessed: 20.11.2022).
Ministry of Environmental Protection and Natural Resources of Ukraine (2022). On the approval of the Procedure for the functioning of the subsurface user’s electronic cabinet (order No. 342 September 5). URL: https://mepr.gov.ua/ documents/3804.html [in Ukrainian] (Last accessed: 20.11.2022).
Cabinet of Ministers of Ukraine (2021). About the Unified Ecological Platform “EkoSystem”. (Resolution No. 1065 October 11). Official Gazette of Ukraine. No. 82 [in Ukrainian].
The Government establishes transparent, convenient, equal rules for access to the subsoil. (26.08.2022). URL: https:// mepr.gov.ua/news/39443.html [in Ukrainian] (Last accessed: 20.11.2022).
Ministry of Environmental Protection and Natural Resources of Ukraine. (2020). On the approval of the Regulation on the catalog of information on geological information (Order No. 119 September 4). Official Gazette of Ukraine, No. 89.
The state geological portal was supplemented with new data. URL: https://www.geo.gov.ua/derzhavnyy-heolohichnyyportal-dopovnyly-novymy-danymy-2/ [in Ukrainian] (Last accessed: 20.11.2022).
Opimakh, R. (2019) The Subsoil User’s Investment Atlas has become operational in Ukraine. URL: https://www.kmu. gov.ua/news/roman-opimah-v-ukrayini-zapracyuvav-investicijnij-atlas-nadrokoristuvacha [in Ukrainian] (Last accessed: 20.11.2022).
Kanevska, A. (2021) Deep, but transparent: opportunities for investing in the Ukrainian underground. URL: https:// www.epravda.com.ua/columns/2021/02/4/670652/ [in Ukrainian] (Last accessed: 20.11.2022).
The Prime Minister of Ukraine and the Vice-President of the European Commission signed the Memorandum on strategic partnership in the raw materials industry. (13.07.2021). URL: https://www.kmu.gov.ua/news/premyer-ministr-ukrayini-ta-vice-prezident-yevrokomisiyi-pidpisali-memorandum-pro-strategichne-partnerstvo-u-sirovinnij-galuzi [in Ukrainian] (Last accessed: 20.11.2022).
Ukraine and the European Union are deepening partnership in the field of critical raw materials. (12.09.2022). URL: https://www.geo.gov.ua/ukrayina-ta-yevropeyskyy-soiuz-pohlybliuiut-partnerstvo-u-sferi-krytychnoyi-syrovyny/ [in Ukrainian] (Last accessed: 20.11.2022).
Ukraine and Poland signed a memorandum on cooperation in the field of geology and mineral resources. (23.06.2022). URL: https://interfax.com.ua/news/general/841134.html [in Ukrainian] (Last accessed: 20.11.2022).
President of Ukraine (2022). Issues of the National Council for the Recovery of Ukraine from the Consequences of the War (Decree No. 266 April 21). URL: https://zakon.rada.gov.ua/laws/show/266/2022#Text [in Ukrainian] (Last accessed: 23.11.2022).
Outcome Document of the Ukraine Recovery Conference URC2022: ‘Lugano Declaration’ (Lugano, 4—5 July, 2022). URL: https://reliefweb.int/report/ukraine/outcome-document-ukraine-recovery-conference-urc2022-lugano-declaration-lugano-4-5-july-2022 (Last accessed: 23.11.2022).
Recovery Plan of Ukraine: “A strong European country is a magnet for foreign investments”. URL: https://recovery.gov.ua/ [in Ukrainian] (Last accessed: 23.11.2022).
Green post-war recovery of Ukraine: vision and models. Analytical note. August 2022. NGO Resource-Analytical Center “Society and Environment”, 2022. 32 p. [in Ukrainian].
Verkhovna Rada of Ukraine. (2022). On the State Budget of Ukraine for 2023 (Law No. 2710-IX November 3, coming into force on January 1, 2023). Government Courier, No. 254. November 30 [in Ukrainian].
Draft Law on Amendments to the Tax Code of Ukraine on Stimulating the Circulation of Special Subsoil Use Permits. (2020). No. 4252 October 22. URL: https://itd.rada.gov.ua/billInfo/Bills/Card/4389 [in Ukrainian]. (Last accessed: 23.11.2022).
Mining Front. URL: https://mining-front.com/about [in Ukrainian] (Last accessed: 23.11.2022).
Verkhovna Rada of Ukraine (2017). On amendments to some legislative acts of Ukraine regarding deregulation in the oil and gas industry (Law No. 2314-VIII March 1). Official Gazette of Ukraine. No. 28.
National strategy for increasing foreign direct investment in Ukraine. (2021). Section 2.2: Energy. Reliance Restricted. USAID. 88 p. [in Ukrainian].
Draft Law on Amendments to Certain Legislative Acts of Ukraine on Improving Legislation in the Field of Subsoil Use. (2020). No. 4187 October 5. URL: https://itd.rada.gov.ua/billInfo/Bills/Card/4241 [in Ukrainian] (Last accessed: 23.11.2022).
Draft Law on Amendments to Certain Legislative Acts on Simplifying Subsoil Use (2020) No. 4187-1 October 21. URL: https://itd.rada.gov.ua/billInfo/Bills/Card/4374 [in Ukrainian] (Last accessed: 23.11.2022).
Verkhovna Rada of Ukraine. (1996). On the foreign investment regime (Law No. 93 March 19). URL: https://zakon. rada.gov.ua/laws/show/93/96-vr#Text [in Ukrainian] (Last accessed: 23.11.2022).
Verkhovna Rada of Ukraine. (2020). On state support of investment projects with significant investments in Ukraine (Law No. 1116-IX December 17). Official Gazette of Ukraine, No. 14 [in Ukrainian].
Verkhovna Rada of Ukraine. (1991). On investment activity (Law No. 1560-XII September 18). URL: https://zakon. rada.gov.ua/laws/show/1560-12#Text [in Ukrainian] (Last accessed: 23.11.2022).
Insurance of military risks is the basis of investment attraction for the reconstruction of Ukraine. URL: https://forinsurer.com/news/22/06/22/41416 [in Ukrainian] (Last accessed: 23.11.2022).
A pilot project for insurance of investments during the war will be launched in Ukraine. (16.09.2022). URL: https:// www.epravda.com.ua/news/2022/09/16/691551/ [in Ukrainian] (Last accessed: 26.11.2022).
Erik, S. Reinert. (2008). How Rich Countries Got Rich And Why Poor Countries Stay Poor. London.
Rating Companies in the Mining Industry (Archived). URL: https://www.dbrsmorningstar.com/research/383106/ratingcompanies-in-the-mining-industry (Last accessed: 26.11.2022).
2021 Resource Governance Index. URL: https://resourcegovernanceindex.org/?1498599435 (Last accessed: 26.11.2022).
Verkhovna Rada of Ukraine. (2005). On the organization of the formation and circulation of credit histories (Law No. 2704-IV June 23). URL: https://zakon.rada.gov.ua/laws/show/2704-15#Text [in Ukrainian] (Last accessed: 26.11.2022).
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Copyright Notice Authors published in the journal “Science and Innovation” agree to the following conditions: Authors retain copyright and grant the journal the right of first publication. Authors may enter into separate, additional contractual agreements for non-exclusive distribution of the version of their work (article) published in the journal “Science and Innovation” (for example, place it in an institutional repository or publish in their book), while confirming its initial publication in the journal “Science and innovation.” Authors are allowed to place their work on the Internet (for example, in institutional repositories or on their website).

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.