The current legislation on mineral use does not suit the investors and the state, Yuri Trutnev, Minister of Natural Resources, said at the cabinet session. The state does not have levers to ensure its interests during field development.
As for investors, the risks they face during feasibility studies provoke the reduction of such studies and of the growth of prospected mineral reserves. Mineral users also face major risks in case of violation of license agreements.
The current law stipulates that licenses can be revoked for violations but do not specify the size, which leaves the issue at the discretion of officials. The law also precludes the free use of the mineral right, which hinders the transfer of mineral facilities to other users, the minister said.
The new bill is expected to fill in gaps in the legislation. Under it, citizens of Russia and legal entities created according to Russian law can become mineral users. Trutnev hopes that this will encourage foreign companies to register their subsidiaries in Russia according to Russian law.
The bill stipulates that land and mineral reserves shall be federal property, with land plots to be assigned to users only through auctions.
