Important Amendments to the Legislation on Production Sharing Agreements

The Parliament of Ukraine has recently adopted the Law "On Amendments to Certain Legislative Acts of Ukraine with Respect to the Performance of Production Sharing Agreements" (hereinafter – the "Law"). The Law is now awaiting the President's signature.
The Law regulates relations between the State and an investor with respect to exploration and extraction of mineral resources (including hydrocarbons) based on a Production Sharing Agreement ("PSA") - a contract pursuant to which the State (owner of the subsoil) allows the investor to conduct exploration and production activities at a specific subsoil plot. The extracted minerals are later shared between the State and the investor based on the provisions of the PSA.