• 20/05/2025 12:37

Deputies Approve Subsoil Deal Without Debate

Despite formal objections, regional deputies supported an agreement with a U.S.-based company for subsoil extraction — the decision passed with near-unanimous approval.Despite formal objections, regional deputies supported an agreement with a U.S.-based company for subsoil extraction — the decision passed with near-unanimous approval.

At a plenary session of the Kirovohrad Regional Council, deputies reviewed a request to grant a special permit for subsoil use. The proposal involved an agreement with “Golden Derrick,” a company whose registered founder is based in the United States. Formally, the draft resolution stated that the council objected to the permit. However, during the vote, a majority of deputies supported the document — one that, despite its wording, essentially granted approval for resource development, reports the Baltimore Chronicle, citing Glavcom.

According to Oleksandr Honta, head of the regional council’s environmental committee, the word “object” was chosen for technical reasons and carries no legal weight in this context. He explained that the resolution refers to the need for a production sharing agreement. It was this legal nuance that guided the deputies’ decision.

The agreement in question would allow the development of subsoil resources in Kirovohrad Oblast, specifically areas with oil and gas deposits, by a company with a U.S.-registered owner, as confirmed in the public registry. During the session, it was noted that while regional councils cannot directly prohibit such developments, their position is considered when the central government makes the final decision.

Despite the formal wording of “objection,” 55 deputies voted in favor of the resolution, with only four abstentions. This outcome surprised observers, given that the text was framed as a protest but included a detailed list of conditions that effectively legitimized the extraction process.

Some deputies later explained that they voted “yes” to ensure that local communities could benefit economically from future subsoil development. However, they also admitted that without a binding agreement with the central government, the distribution of profits at the local level remains uncertain.

The vote took place with little discussion, even though subsoil use has traditionally drawn public scrutiny. Journalists and civic activists present at the session noted that the decision was made quickly, with minimal information shared about the potential environmental impact of upcoming operations.

Earlier we wrote that Zelensky refuses to sign U.S. subsoil agreement.

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