RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of December 2, 2015 No. 1039

About approval of the Procedure for ensuring transparency in the extracting industries

According to Item 15-2 of Article 8, to Item 4-1 of part two of article 24 of the Code of Ukraine on subsoil and the paragraph to the sixth "About oil and gas" the Cabinet of Ministers of Ukraine decides parts two of article 20 of the Law of Ukraine:

1. Approve the Procedure for ensuring transparency in the extracting industries which is applied.

2. Determine the Ministry of Energy and Coal Industry responsible for preparation of the report according to requirements of the Initiative of ensuring transparency in the extracting industries.

Approved by the Resolution of the Cabinet of Ministers of Ukraine of December 2, 2015 , No. 1039

Procedure for ensuring transparency in the extracting industries

1. This Procedure determines the mechanism of collection and distribution of information on the nation-wide and local taxes and charges and other payments, and also context information (public inspection) by the extracting industries, including information on the productive (economic) activity necessary for ensuring transparency in the extracting industries and preparation of the report according to requirements of the Initiative of ensuring transparency in the extracting industries (further - the Initiative).

2. In this Procedure terms are used in such value:

multilateral group on question of implementation in Ukraine Initiatives (further - multilateral group) - group which is formed with participation of representatives of the central executive bodies, subjects of managing, public organizations which structure affirms the order of Minekoenergo, for control of process of the reporting according to requirements of the Initiative, approval of the specification for the independent administrator, approval of its appointment;

the report - report form which prepares independent administration by results of carrying out the analysis and reconciliation of provided data by mining companies, on the one hand, and executive bodies, on the other hand, in three languages (Ukrainian, Russian and English) and will be approved with multilateral group at all stages of its preparation according to the specification;

the accounting period - calendar year for which the report prepares;

Initiative of ensuring transparency in the extracting industries - the independent and voluntarily supported by Ukraine at the international level standard of ensuring transparency which takes root in 49 countries of the world;

the independent Administrator - the subject of managing who is elected by Minekoenergo on competitive basis is approved by multilateral group and authorized to prepare the report;

materiality threshold - extreme value of payments which is established by multilateral group and according to which the list of the subjects of managing providing information in the report is determined;

the specification for the independent administrator - task on preparation of the report, in particular scoping of information, stages of preparation of the report, approval of intermediate results and obligations of the independent administrator at each stage which is integral part of the agreement on preparation of the report.

3. Preparation of the report according to requirements of the Initiative is entered since 2015 and covers information on oil and gas industry (production and oil transportation and gas) for 2013.

The report shall be published in December, 2015.

For 2014 the report prepares in 2016 and covers oil and gas, coal, iron ore and other industries.

Further the report prepares annually.

4. In the report information on all to the payments for the accounting period which are actually paid in cash and/or non-cash/natural form on which amount exceeds materiality threshold is entered. The amount of payments in non-cash/natural form is estimated according to accounting rules.

5. Minekoenergo annually since 2015:

together with multilateral group till March 1 determines the extracting industries and the list of their subjects of managing which shall submit information for preparation of the report;

till May 1 on competitive basis chooses the independent administrator and signs the service provision agreement with it on preparation of the next report.

6. Subjects of managing of the extracting industries give Minekoenergo till July 1 (in 2015 - till December 10) the questionnaire in form according to appendix 1, the annual statement in form according to appendix 2.

Information of subjects of managing of the extracting industries which moves for preparation of the report is confirmed by the signature of the director and is certified by seal the organizations (in the presence).

7. Central and local executive bodies, public institutions and the state companies in the field of geological studying of subsoil give Minekoenergo annually till July 1 (in 2015 - till December 10) the questionnaire of information to the report according to appendix 3.

8. GFS annually till July 1 (in 2015 - till December 10) gives Minekoenergo information according to the list of subjects of managing of the obtaining industries which determines Minekoenergo together with multilateral group, separately by each company of the extracting industries of rather actual receipts for each of payments which are determined in the annual statement about tax payment and other payments for subjects of managing of the extracting industries.

GFS annually till July 1 publishes on the official site information on payment of each tax by subjects of managing of the obtaining industry for the accounting period.

9. Minekoenergo provides to the independent Administrator the acquired information for accomplishment of contractual commitments.

10. The independent Administrator based on information obtained from Minekoenergo carries out the analysis and reconciliations of information obtained from different sources for preparation of the report, creates and provides Minekoenergo the report in format and terms which are determined by the specification.

11. In case of disagreements of the payment amounts received from the central executive bodies and subjects of managing of the extracting industries the independent Administrator has the right to address for explanations and refining of information on the companies of the extracting industries, including about provision of copies of source documents in confirmation of payment amount.

The companies of the extracting industries shall provide to the independent Administrator of the copy of source documents (for example, the payment orders approved by bank), confirmatory payments and/or implementation of repayment of the obligation in non-cash/natural form in ten-day time from the moment of receipt of request from the independent administrator.

12. Minekoenergo, having received from the independent administrator the report, annually until the end of October (in 2015 - till December 11) approves it with multilateral group and publishes the report on the official site and on the Single state web portal of open data.

Minekoenergo together with multilateral group will organize work on the presentation and discussion of the report at the national and regional level.

13. Minekoenergo annually till October 10 (in 2015 - till December 20) informs the Cabinet of Ministers of Ukraine on condition of fulfillment of requirements of this Procedure.

Appendix 1

to the Procedure for ensuring transparency in the extracting industries

Leaf of poll for subjects of managing of oil-and-gas sector

1. General information as of ___ year

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