On 17 June 2008, a new auction procedure came into force for the sale of special permits for subsoil use in 2008.

The new auction procedure is prescribed in the Resolution. It is more transparent and straightforward than previous procedures but also gives greater control to the Cabinet of Ministers of Ukraine. The main changes include:

  • auction participants now comprise the auction organiser, the auction committee and the bidders

  • the auction organiser — currently the Ministry of Environmental Protection — has taken over the role and functions of the auction operator. It works with regional councils and central governmental bodies to create a list of the areas to be put up for auction

  • the auction committee — whose members have authority to make the most crucial decisions — is now appointed by the Cabinet of Ministers of Ukraine

  • only businesses (including foreign businesses) and individual businessmen may be bidders

  • bidders do not have to pay any commission, participation fees or advances

  • at least two bidders for a particular lot are required for the auction to be held

  • the winning bidder must pay for the special permit within 30 days or lose his right to it (in which case it will be auctioned again)



Law: Resolution No. 525, dated 4 June 2008

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The original publication date for this article was 25/06/2008.