The American Chamber of Commerce in Ukraine is concerned about the introduction of the PSA (product sharing agreements) mechanism in addition to the license/royalty regime which continues to run in parallel.
The Chamber said that the criteria discriminating PSA and other blocks are unclear. The current PSA process is seriously flawed.
“PSAs are not used in any EU country, and their use in Ukraine only underlines the urgent need for reforms in the existing oil and gas fiscal and regulatory regime,” the Chamber said, adding that a single, fair, stable and non-discriminatory environment for oil and gas is one of the key factors in attracting major international investment.
The American Chamber of Commerce in Ukraine looks forward to working with the government and members of the international community to offer ways to address shortcomings in the current PSA process and to create an environment that sparks a resurgence of interest in the sector and allows Ukraine to achieve its objectives including self-sufficiency in gas.