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Subsoil users are willing to use EITI

The lion's share of state budget of Ukraine formed mining companies. But ignorance of society on the flow of subsoil users and the fair distribution of these funds often leads to the fact that there is a distrust of companies distortion amount of their income. Through the implementation of EITI standard first population and business and investors could watch the payments to the state subsoil users and their distribution.
By now, experts urge Ukraine to make every effort to work on the implementation of the standard EITI, to publish the first data according to the standard Extractive Industries Transparency Initiative in October 2015. The report mining companies for their part must disclose payments to the budget and government - the revenue from mining companies. To realize these goals in the near future planned signing of an agreement with the World Bank and the Administrator of independent search statements.
Today the scenario considered two ways in which Ukraine can go in the preparation of the first reports. One of them is the disclosure of payments with the consent mining companies themselves. In this case, unlikely to information provided all oil and gas companies operating on the Ukrainian fields. The other - a way of legislative regulation where the duty of companies to disclose information about payments and government revenues from the bodies of subsoil users will be approved in one of the regulations. This path is a hard and long, but in this case there is a strong likelihood that the report data will EITI maximum number of participants sector.
As part of the implementation of accounting standards for each country includes data for disclosure in accordance with their own situation. The initiative is based on the 12 basic principles that require mining companies to publish paid money, and the government - to publish data on: income. IPDO be called a coalition government, mining companies, civil society, investors and international organizations. And the report provides an understanding of who produces what and where to allocate their money.
International Standard IPDO a synthesis of measures and mechanisms to ensure transparency of revenues from nafty-, gas and mining industries. Speaking in simple terms: standard makes available to the public revenue subsoil users. So IPDO - an international movement that aims to ensure that all income sector subsoil became transparent. Reports can be submitted data on the production, transportation and taxes paid. You can also include information about contributions to the economy and social investments of a company.
The initiative reduces confidence, reduced social tensions. Those numerous roundtables, presentations, discussions expert community work initiative and participation of government officials spoke about how important this process. Reporting will understand what proportion of GDP up revenues from extractive industries. This is a fairly large segment of budget revenues, so there should be transparency.
Participating in the conference the parties agreed that it is necessary to establish more close communication and cooperation with the government and third parties to ensure rapid passage and adoption of normative legal acts. State support for this initiative is based on the benefits that can give using standard EITI: using reports state provides information that natural resources are well managed and properly distributed. As a result, reaching transparency in the extractive sector payments, Ukraine can make a significant step in the development of its economy and enhance the ability of the investment portfolio, the possibility of implementing the most favorable subsoil licenses.
A good example is the implementation EITI history of Kazakhstan, where the mechanism is working successfully and whose experience can be an example for us. For example, in Kazakhstan EITI standard way of implementation began with the disclosure of tax information and state companies, but today was much wider than standard, any payments mining organizations, sponsor contributions, dividends - everything is public and anyone can read from this information, see How are certain income from subsoil users. In order that the work performed continuously and efficiently, the obligation to adhere to the principles EITI subsoil outlined in the legislation of Kazakhstan on subsoil under which all companies that extract minerals in Kazakhstan, to disclose their data. In 2013, Kazakhstan has received the highest status - EITI follower. Why is this important status? Because it means recognition of the country as a world community where the activities of extractive industries transparent and open, under the control of society. And all countries receiving such status initiative immediately received high ratings in several Point status improved.
Of course, the implementation of initiatives at the state and imposes certain responsibilities. But Ukraine Extractive Industries Transparency Initiative is to improve the investment climate via a link signal to potential foreign partners Ukraine Government commitment to equitable income distribution, and thus minimize corruption and lack of social risks of conflicts
Investors initiative to reduce the risk of reputation and demonstrate its commitment to social responsibility. Improving the ranking of countries leads on to other positive aspects. This image bonuses, improved conditions for obtaining loan capital risk reduction. This is important in the current economic situation in Ukraine, because all of a country willing to work.
So for Ukraine Extractive Industries Transparency Initiative - a flexible tool that allows you to enter the effective management of natural resources, allowing harmonize primarily legal requirements with the requirements and create favorable conditions for mining companies in Ukraine to attract investments in the production of hydrocarbons.
March 10, 2015
Roman Storozhev, LigaBlogs