Expected 2008 Changes in Subsoil Use Legislation

Excerpt from Russian Petroleum Investor by Inna Gaiduk

The Ministry of Natural Resources expects that the government will approve amendments to the "About Subsoil" law that will considerably expand opportunities to distribute licenses by competitions, including investment. In addition, the package of amendments presented to the government includes revisions toughening the performance requirements under license agreement conditions and also regulates the modification procedures for operating licenses. There is also a second block of amendments to the law that concern restrictions of foreign participation in development of strategic deposits, but currently that package is undergoing interdepartmental coordination. By the end of 2008, the government plans to consider amendments defining the calculation of the size of harm caused to the state by subsoil users, changes to the procedures on conducting tenders and auctions for subsoil use rights and also revisions to the definition of the bases as well as the manner of change and specifications for subsoil blocks.

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