Law No. 1039-XIV “On Production-Sharing Agreements.”

The scope of this Law is to create favorable conditions for investment in prospecting, exploration, and extraction of mineral resources within the territory of Ukraine, its continental shelf and the exclusive (maritime) economic zone on the terms and conditions set forth in production-sharing agreements. This Law shall regulate the relations arising in the process of concluding, implementing, and terminating production-sharing agreements and stipulate the basic legal requirements for such agreements, as well as the specifics of the legal relations pertaining to the use of subsoil on production-sharing terms. The relations arising during prospecting, exploration, and extraction of mineral resources, sharing of produced production, transportation, treatment, storage, processing, use, sale, or other disposal thereof, as well as construction and operation of related industrial facilities, pipelines, and other facilities shall be governed by a production-sharing agreement, which shall be concluded pursuant to this Law. The Cabinet of Ministers of Ukraine, within the scope of its powers, shall coordinate the activity of the executive authority and local authority during conclusion, implementation, and termination of production-sharing agreements, subject to the provisions of this Law. A production-sharing agreement may be bilateral or multilateral, i.e., several investors may be parties thereto, provided that they incur joint and several liability for the obligations stipulated by such an agreement. This Law establishes the essential terms and conditions of a production-sharing agreement.