Production sharing agreements are used in many countries around the world. This mechanism was first used in Bolivia in the early 1950s and then in Indonesia in the 1960s.
Ukraine has seen modest success in attracting foreign energy investors despite having substantial potential among European nations to develop new hydrocarbon basins.
Historically, PSAs in Ukraine were signed with great enthusiasm from both sides, namely foreign investors and the state. No wonder, as in our country it’s always been an ultra-sensitive area not so much for economic as for geopolitical reasons. PSAs are risk-bearing contracts requiring a high level confidence in the country’s long-term future. As our cover story speaker Dr. Alexey Kot, managing partner of Antika Law Firm, told me during our last conversation, the state should make the first move towards attracting investors. It’s hard to oppose this point of view.
Meanwhile, lots of developments have taken place in the areas of mineral resources and subsoil use, electricity market, facilitation of the renewables sector. Our contributors brought us a new portion of analysis for consideration ahead of New Year and Christmas celebrations.