The tenders announced by the Cabinet of Ministers of Ukraine for the conclusion of production sharing agreements for the Svichanska and Mezhyhirska areas (Resolutions 982, 975 of August 13, 2025) failed.
The competitions did not take place due to a lack of applications for participation.
The reasons for this are a cohort of objective and subjective factors (rent equalization, bonus payments, war, investment calculations).
The question arises whether the Cabinet of Ministers of Ukraine can re-announce tenders for the conclusion of production sharing agreements for the Mezhyhirska and Svichanska areas.
Formally, the Cabinet of Ministers of Ukraine is not prohibited from continuously announcing tenders for the conclusion of production sharing agreements until at least two investors submit an application.
However, the Ukrainian subsoil law (Subsoil Code of July 27, 1994) proceeds from a different point of view.
Clause 10 of Section X ''Final Provisions'' of the Subsoil Code provides that the list of subsoil areas (mineral deposits) that are of strategic importance for the sustainable development of the economy and the defense capability of the state, which will be provided for use through competitions for the conclusion of production sharing agreements.
The Svichanska and Mezhyhirska areas are not included in the list of subsoil areas (mineral deposits) that are of strategic importance for the sustainable development of the economy and the defense capability of the state, which had considered according to the Resolution of the Cabinet of Ministers of Ukraine 845, 14th of July, 2025 will be provided for use through competitions for the conclusion of production sharing agreements.
That is why, by decisions of the Cabinet of Ministers of Ukraine and local self-government bodies, a production sharing agreement may be concluded without a tender for subsoil areas with insignificant reserves of minerals, which is confirmed by the conclusions of the relevant state bodies (Part 5 of Article 6 of the Law of Ukraine "On Production Sharing Agreements" of September 14, 1999).
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