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Regulator refuses to issue subsoil permit, claiming 2009 auction forged

29.06.2016

Subject of Complaint: Ministry of Ecology and Natural Resources (MENRU), State Geology and Mineral Resources Service

Complaint in Brief: The Complainant, a subsoil user in Zakarpattia Oblast, had won in an auction of special permits for subsoil use back in 2009. However, by April 2016, the State Regulator, the State Geological Service had still failed to grant the special permit, arguing that the auction had been conducted by the Ministry of Ecology of Ukraine at the time. The State Regulator took the position that it was not bound by an illegitimate decision to issue the special permit. Nevertheless, the Complainant succeeded in obtaining a ruling by the Lviv Court of Administrative Appeal, which obligated the State Regulator to issue the permit. The State Regulator had so far failed to enforce this court order.

Actions taken: The BOC informed the office of  the Head of the State Geological Service about the issue, as well as to the Director of SGS Legal Department. The ensuing constructive dialog led the Geological Service to recognize the existence of business malpractice and promised to eliminate the barriers shortly. This was done in a couple of days.

Result achieved: Within a week of lodging a complaint with the BOC, the Complainant received an original of the special permit.