July 8, 2011, the Verkhovna Rada of Ukraine adopted the Law of Ukraine No. 3687-VI "On peculiarities of lease or concession of objects of fuel and energy complex being in state ownership"

This Law defines the peculiarities of lease or concession of separate objects of fuel and energy complex being in state property, the lease and concession of such objects.

Of the 209 existing coal mines of Ukraine 167 remain in state ownership.
Mineraloel divided all its coal assets into four groups.
The first group included investment attractive enterprises that should be privatized. Second - mines that may be developed in public-private partnerships. The third - enterprises, which should remain in state ownership, the fourth - mines, subject to liquidation.
The new leadership Intergoogle stated that the process of privatization of coal mines suspended, and sales plans for investment-attractive mines cancelled.
That is, the authorities believe that a key tool to attract investment in the industry should be no privatization, and rent.
Do it to get from privatization maximum result, the state needs to modernize them. It is planned to raise money through the transfer of individual companies in the concession.

If you consider that the concessionaires receive priority for further acquisition of mines, concession is one way of privatization.

The term "fuel and energy complex" is used in the Law in that the value of integral property complexes or a system of integral property complexes of enterprises and their structural subdivisions (branches, departments, sections) that provide (appointed) and sufficient for the production of

economic activity in the field of mining of coal and lignite (brown coal), its processing.

According to this Law, the lease or concession shall be subject to the following objects of fuel-energy complex:

where possible the use of modern production technologies and in need of modernization (technical re-equipment) of the process;

cuts and mines in coal mining and its processing, which are of no use and should close.

construction in progress and abandoned objects in public ownership that can be completed with a view to their use for the implementation of activities in the field of mining of coal and lignite (brown coal), its processing.

The lease or concession of objects of fuel-energy complex, not regulated by this Law, are governed by Civil ( 435-15), Economic ( 436-15), Land ( 2768-14) codes of Ukraine, laws of Ukraine "On concessions" ( 997-14), "On lease of state and communal property" part two of article 2 of the law, other legislative acts.

The decision on the appropriateness of the fuel and energy complex in the lease or concession is made by the authorized management body - the Central Executive body for implementation of state policy in the fuel and energy complex (hereinafter - the authorized body

management), i.e. the relevant Ministry.

Tenant or concessionaire of the facility's fuel and energy complex may only be a legal entity.

The person with whom a contract of lease or concession of the facility's fuel and energy complex, is required within 12 months from the date of signing of agreement (from the date of introduction of the object if the object has been built, rebuilt or restored in accordance with the terms of the concession contract) to bring their material and technical base and staff in accordance with the conditions of implementation of economic activity for which the object is taken on lease or concession, and to obtain the necessary permits for the appropriate activity.

During the lease or concession of the facility's fuel and energy complex for the period of receipt by the tenant or concessionaire the necessary permits the tenant or concessionaire has the right to exercise economic activity in the facility lease or concession on the basis of permits that were issued to the company, the integral property complex of which (its structural divisions) was leased or conceded, but not more than

as in the period of 12 months from the date of conclusion of the lease or concession.

The statement (representation), which provides the initiative for the transfer of the facility's fuel and energy complex in the lease or concession, the interested persons are the authorized management body for consideration. By results of consideration of the statement (representation) of the authorized management body taking the decision on transfer of the facility's fuel and energy complex in the lease or concession or refusal of leasing or concession.

By results of consideration of the application (presentation), analysis of the effectiveness and feasibility of leasing or concession of objects of fuel-energy complex, the authorized management body shall decide on the expediency of transferring the fuel and energy complex in the lease or concession, what informs the initiator of the statement (representation).

When deciding on a proposal for the transfer of the facility's fuel and energy complex in the lease or concession or denial of transfer of lease or concession of the receipt of the conclusions of the Antimonopoly Committee of Ukraine about the possibility of a lease or concession and the conditions of the lease or concession is not required.

In case of acceptance by the authorized management body of the decision on transfer to rent or concession of objects of fuel and energy complex being in state property shall be carried out organizational and technical preparation of this object to the transfer, respectively, in lease or concession.

After completing this training is a competition for the right to receive the lease or

concession.

The announcement of the competition for the right to receive lease is carried out by the state property Fund of Ukraine on the submission of the authorized management body of

2. Organizational and technical preparation of the site

fuel and energy complex to the transfer of lease or concession

includes:

inventory of fixed assets and inventory items in the composition of the object;

improvement of technical and construction documentation;

determining the value of the object in accordance with the method of property valuation approved by the Cabinet of Ministers of Ukraine. The cost of industrial mineral reserves is not taken into account. The evaluation of the object that is passed in the lease or concession shall be in accordance with legislation on the assessment

of property, property rights and professional valuation activities through

of the company, the balance of which is such an object;

the allocation of the land assigned to the object in nature (on ground), making land-planning documentation;

economic rationale and scope of state support for cheaper loans for investment and partial coverage of the cost of production for coal mines - a lessee or concessionaire of the facility's fuel and energy complex in accordance with the law on State budget of Ukraine for the relevant year for a period of not more than five years, with mandatory annual reduce the burden on the State budget of Ukraine according to the schedule.

Simultaneously with the organizational and technical preparation of the authorized management body, together with the Central body of Executive power on issues of economic development and trade prepares the draft tender documents for the concession, and with the state property Fund of Ukraine, regarding the lease, which includes:

qualification requirements for participation in the contest and conditions of competition;

instructions to bidders (including information and requirements about the order of competition, development and design of applications and bids, information on eligibility requirements and conditions of the tender, information regarding the facility lease or concession that must be contained in the application for granting the consent of the body of the Antimonopoly Committee of Ukraine to acquire the lease or concession);

the draft contract;

information about the announcement of the contest.

Our Office provides support and registration of the necessary documentation for the transfer of lease or concession of state-owned mines.