The Government of Ukraine promulgated the Resolution No.848 "On the implementation of an experimental project on the introduction of auctions for the sale of licenses for the use of subsoil through electronic auctions". According to the document, electronic auctions are expected to be carried out from October 24, 2018, in accordance with the Temporary procedure approved by the Resolution.

What are the benefits of using the ProZorro e-platform to provide subsoil use, as opposed to auctions with "hammer" explains the Executive Director of the Association, Roman Opimakh.

• Bidding becomes anonymous, and the approval procedure is much simplified. This eliminates the possibility of abusive selection during qualification of participants, as well as alleviates the accusation of intentional scoring of results between applicants.

• Bidding involves three rounds, in each of which all participants have one vote. The one who will offer the highest price in the previous round will have a priority in the queue of offers. As a result, the state should receive the maximum premium to the initial cost.

• To participate in the auction, the bidder independently chooses an electronic trading platform from the list of registered in ProZorro. This platform will become the holder of the guarantee fee and will receive a commission in case of determining the winner of the auction. Therefore, each platform is interested in promoting the lot and attracting more participants.

• After the announcement of the proposal, it has been given 3 months to study it and submit an electronic application. This time should be enough for interested parties for competent analysis and drawing up of own budget.

• In case of intentional or accidental failure of the auction by the winner (refusal to pay for license), the second largest bidder will receive win. Such an option should offset the risk of cancellation of the auction and guarantee that the bidding will continue until the end.

• In order to prevent providing of Ukrainian subsoil into undesired for the state companies is the Law of Ukraine "On Sanctions" - entering into the sanction list is the basis for deprivation of the license.

• In the case of granting at the auction of the production license, the winner is obliged to conduct an assessment of the environmental impact within 6 months, for exploration and production licenses - within one year from the date of receipt.

You can read the Resolution on the website of the Government at the link: https://goo.gl/3E7WA9