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.