Legal status of the Interdepartmental Commission for the organization of the conclusion and implementation of production sharing agreements

Article 5 of the Law of Ukraine "On Production Sharing Agreements" No. 1039-XIV dated September 14, 1999 provides that the parties to a production sharing agreement are the investor(s) and the state represented by the Cabinet of Ministers of Ukraine.

To resolve issues related to the organization of the conclusion and implementation of production sharing agreements, the Cabinet of Ministers of Ukraine shall establish a permanent Іnterdepartmental Сommission (hereinafter referred to as the Interdepartmental Commission) consisting of representatives of state bodies, local self-government bodies, and deputies of Ukraine.

Informational, organizational, material and other support for the activities of the Interdepartmental Commission is provided by the central executive body (hereinafter referred to as the working body of the Interdepartmental Commission), determined by the Cabinet of Ministers of Ukraine.

The Regulation on the Interdepartmental Commission is approved by the Cabinet of Ministers of Ukraine.

Deputies of Ukraine are included in the Interdepartmental Commission for the period of their performance of their deputy powers (with their consent) and are excluded from its composition (with their consent) by the Chairman of the Interdepartmental Commission.

The number of the deputies of Ukraine included in the Interdepartmental Commission cannot exceed one third of its composition.

The Interdepartmental Commission for the Organization of the Conclusion and Implementation of Production Sharing Agreements is a permanent body established to resolve issues of organizing the conclusion and implementation of production sharing agreements in accordance with the Resolution of the Cabinet of Ministers of Ukraine No. 644 of 01.08.2013 (hereinafter referred to as the Regulations).

The composition of the commission today:

1) Minister of Economy, Environment and Agriculture, Co-Chairman of the Interdepartmental Commission on Mineral Areas, Except for Oil and Gas Subsoil Areas;

2) Minister of Energy, Co-Chairman of the Interdepartmental Commission on Oil and Gas Subsoil Areas;

3) State Secretary of the Cabinet of Ministers of Ukraine, Deputy Co-Chairman of the Interdepartmental Commission on Mineral Areas, Except for Oil and Gas Subsoil Areas;

4) First Deputy Minister of Energy, Deputy Co-Chairman of the Interdepartmental Commission on Oil and Gas Subsoil Areas;

5) Representative of the Secretariat of the Cabinet of Ministers of Ukraine, Secretary of the Interdepartmental Commission on Mineral Areas, Except for Oil and Gas Subsoil Areas;

6) First Deputy Minister of Economy, Environment and Agriculture;

7) First Deputy Minister of Finance of Ukraine;

8) First Deputy Minister of Justice of Ukraine;

9) First Deputy Head of the State Tax Service;

10) Head (Deputy Head) of the State Service of Geology and Subsoil of Ukraine;

11) Head (Deputy Head) of the State Labor Service;

12) Head of a structural unit of the Apparatus of the National Security and Defense Council of Ukraine (upon consent).

Representatives of local self-government bodies on whose territory a subsoil area is located, which is transferred for use under the terms of a production sharing agreement (with consent).

The role and activities of the Interdepartmental Commission are not limited solely to organizing the preparation of proposals for determining the terms of the competition, reviewing materials submitted by the competition participants, conducting negotiations with them, and preparing and submitting to the Cabinet of Ministers of Ukraine a proposal for determining the winners of the competition.

Thus, according to subparagraph 3 of paragraph 3 of the Regulation, the main task of the Interdepartmental Commission, in particular, is to organize the implementation of agreements.

The further cooperation of the Investor and the State depends on the decisions of this Сommission, therefore, the state authorized body, taking into account the decisions of the Сommission in order to obtain a position in resolving situations, is forced to be guided by its directives, regardless of its legal status (central executive body or authorized economic entity).

The Cabinet of Ministers of Ukraine, as a party to the agreement, dualized its mandate to the coordination body.