Market participants discussed the legislative initiatives EITI to enhance transparency in the extractive industries
April 07, 2015
Adoption of the Law "On Amendments to Certain Legislative Acts of Ukraine concerning the strengthening of the Extractive Industries Transparency in Ukraine" will not only improve the control system by domestic natural resources, but will also help improve the investment climate in the country. This is the conclusion reached by the participants of the round table "Legislative initiatives to strengthen the Extractive Industries Transparency Initiative", which took place on April 6 in Kiev.
The event was organized analytical center DiXi Group with the support of the International Fund "Revival". Partners round table were Ministry of Fuel and Energy, the American Chamber of Commerce in Ukraine, Association "EnergoTransparentnost" initiative "stronger together" and "Resuscitation package of reforms."
As President DiXi Group Elena Pavlenko, the development of the bill joined by many stakeholders. As noted Pavlenko, that he actually complements Law on the gas market and allow mining companies and other market players to interact better with each other, which will contribute to the modernization of Ukraine's energy sector. This initiative is a real step in the implementation of reforms in the energy sector, the president added DiXi Group.
In turn, the first deputy chairman of the Committee on Energy, Nuclear Policy and Nuclear Safety Alexander Dombrowski stressed that the draft law is extremely important in terms of combating shadow schemes because it provides maximum transparency and clear rules of the game on the market. Dombrowski said that the deputies are ready to join in the work, not only to the registered bill, but also to make his co-authors.
People's Deputy Olga Belkova stressed that the bill regulates the relations and the actual duties of several market participants, as well as the fiscal authorities regarding the publication of certain information: "There are an infinite amount of data that you want to open as soon as possible," said the deputy, noting that it would be of significant steps towards the creation of a qualitatively new relationship in the domestic mining market.
During the discussion, Adviser to the Minister of Energy and Mines Elena Dyachenko said that one of the advantages of Extractive Industries Transparency Initiative is not only the publication of data on production, mining licenses and permits, but also every citizen access to information on payments that the company has carried out in the state budget. According to Dyachenko, namely information about how companies pay taxes and fees, will in the future to analyze how the objective is to set the level of rental rates. Now the question is one of the most painful for the miners.
Welcomed the new bill and Tylee Graham, head of the company "Shell" in Ukraine, who noted that the introduction of this initiative is essential, as will establish the appropriate level of trust between market participants, government and the public, as well as to go to a new level of relations with other states: "From my own experience, we know how important the public know that the state receives from companies and how effectively uses these funds," - said tile. "We are determined to prove the implementation of this initiative to completion" - summed up Graham tile.
This opinion is shared and Adviser to the Minister of Environment and Natural Resources Alexey Goncharuk. He said that without trust between the regulator and the users of subsoil reform impossible. He noted that the implementation of the EITI standard will enhance transparency not only in the energy sector, but also in other extractive industries (metallurgy, mining, etc.). Publication of reliable data and the development of surveillance systems for compliance with the standard will improve the economic situation in the country and promote the access of new investments, said Goncharuk.
Alexander Shumsky, (State Fiscal Service - Ed.) Added that information throughout the mining industry, which will be published by companies that allow fiscal authorities and the government to decide as to which preferences have companies, investors and any model in the market of production should be applied .
At the same time, the representative of the US Embassy in Ukraine John Bush briefed the participants of the round table with the experience of the United States in the implementation of Extractive Industries Transparency Initiative. He stressed that the state is practically in the same position as that of Ukraine - it is also the only candidate country that is trying to join the initiative. However, thanks to an embodiment of the US standard for several years annually receive about $ 13 billion. In the form of rent and other payments from extractive companies operating in the areas located on federal lands.
Taras Muscled, and. o. President of the American Chamber of Commerce in Ukraine, the author of the letter in support of the implementation of the Initiative, in turn, noted that the EITI can be a tool for change in tax policy in the industry. T. Muscled believes that the implementation of the Initiative will create the country's independent investment environment that will significantly strengthen the position of the state at the international level.
Roundtable participants expressed the hope that the bill will allow the mining sector of Ukraine developed through more transparent and understandable terms, will significantly increase the level of trust among all market participants and accelerate investment in mining.
April 07, 2015
oil-gas-energy.com.ua