The prospect of implementing the Agreement on Mineral Resources with the US may be attractive for Ukrainian greenfield companies that already have special permits for deposits of minerals critical to the EU or the US, according to NADRA.info founder Volodymyr Boiko.
Among such companies, the expert named, in particular, the investment group BGV Group Management headed by Hennadiy Butkevych, as well as companies owned by Vitaliy Yakimenko and Oleksandr Nastenko.
“But at the same time, for some mineral extraction investors, such as Ferrexpo and Black Iron, the agreement will be a real test of strength. After all, against the backdrop of preparations for international agreements, officials have already announced another hunt for ‘dormant’ licenses,” Boiko commented on the situation to the Interfax-Ukraine news agency.
In his opinion, the redistribution of subsoil use rights is a very likely reality in the near future.
“We can only hope that the auditors will act wisely and not allow projects to be scrapped whose implementation has been delayed by objective circumstances beyond the control (or desire or intentions – IF-U) of subsoil users,” said the founder of NADRA.info.
He also believes that the agreement with the US could lead to a thorough audit of the previous activities of companies in the extractive industry.
“It can also be assumed that the agreement will trigger the start of an audit not only of ‘dormant’ special permits in private hands, but also a thorough public audit of all state-owned companies and enterprises in the extractive industry for each special permit, PSA or PSA (production sharing agreement, joint activity agreement – IF-U), for each well drilled or leased, for each management decision,” added Boiko.
As reported, Ukraine and the US signed a framework agreement on economic partnership on April 30. It was signed by First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko and US Secretary of the Treasury Scott Bessent. It provides for the creation of a US-Ukraine recovery investment fund.
Ukrainian Prime Minister Denys Shmyhal expressed hope that the Verkhovna Rada would ratify the signed agreement by May 8. The “technical” agreements have not yet been signed or published.
