Ministry of Natural Resources proposes making “black lists” of companies fictitiously participating in auctions for subsoil block

Accordingto the official website of the Year of Ecology, draft amendments to the Russian Law “On Subsoil” related to creating a register of dishonest auction participants has been agreed with most agencies and will soon be submitted to the Government of Russia. To date, the adoption of this document is a prerequisite for the effective licensing of subsurface resources and prevention of disruption of auctions. The act will create and maintain a register of unscrupulous participants in auctions for the right to use subsoil blocks. The availability of information about the applicant in the register will become the basis for refusing to accept the application for participation in the auction. Currently, the most common form of granting the right to use subsoil for exploration and production of minerals or geological exploration, survey, and mining (under combined licenses) is an auction for the right to use a subsoil block. In practice, there are companies that regularly participate in auctions and offer the largest one-timepayment amount, but never pay the amount declared at the auction.

The law of the Russian Federation “On Subsoil” is planned to be supplemented with the provision on the need to provide information about the entity recognized as the winner of the auction for the right to use the subsoil block, but did not pay a one-time payment to the Federal Antimonopoly Service on time, for inclusion in the register of unscrupulous auctionparticipants. The proposed amendments provide for the establishment of an exhaustive list of information to be included in the register of dishonest participants, as well as the need to place data on the official website of the Russian Federation for information on auctions (https://torgi.gov.ru/). The draft provides for the possibility of removal the information contained in the register of dishonest participants after two years from the date of its introduction.

In addition, the document will amend Article 14 of the Law of the Russian Federation “On Subsoil” related to introduction a ground for refusing to accept an application for participation in the auction if there is the applicant or the founders (participants) are listed in the register of dishonest participants. The law will ensure admission for participation in auctions for the right to use the subsoil only for the companies that are really interested in obtaining this right, thereby reducing the number of cases of termination of the right to use subsoil due to non-payment of a one-time payment for the right to use the subsoil.

Press Service of the MENR of RT