A law has been signed on increasing payments while delaying exploration
Russian President Vladimir Putin signed a law on increasing payments for the use of mineral resources from September 1, 2024, while delaying the timing of exploration, as well as on the possibility of deducting the costs incurred for exploration. The document is published on the official portal of legal information.
The law introduces an alternative mechanism to encourage unscrupulous users to conduct geological exploration of the subsurface within the regulatory time frame.
Currently, the time frame for studying the subsurface is, as a general rule, five years, and for certain areas and the continental shelf — seven and ten years, respectively. At the same time, the current legislation provides for insignificant payments for the use of mineral resources, which do not increase when the work is delayed. As a result, according to the explanatory note, subsoil users are not interested in conducting geological exploration and going out for an examination of reserves.
Therefore, the law establishes from September next year increasing coefficients to the rate of regular payments in case of exceeding the deadline for geological exploration of the subsoil, except in certain cases. In the first year following the year when the deadline was exceeded, the payment rate will double, in the second year — 10 times, in the third and subsequent years — 100 times. As a result, the total amount of additional budget revenues, according to the financial and economic justification, may amount to 5.5-6.0 billion rubles per year.
These rules do not apply to payments for the right to geological exploration of subsurface resources located in internal sea waters, in the territorial sea, on the continental shelf, in the exclusive economic zone of the Russian Federation, in the Black Sea, the Russian sector of the Caspian Sea and outside Russia in territories under its jurisdiction. They also do not apply to subsurface users who are subject to sanctions or restrictive measures of foreign states.
The law also provides for the possibility of deducting the costs incurred by subsoil users for the geological study of the subsoil, regardless of the cases of transfer of the right to use the subsoil and renewal of the license. These costs are taken into account according to the consolidated list of projected works.
And if a deposit is discovered on the site provided for geological study, then the period for studying its remaining area is counted again. The countdown of the new deadline is also provided in the case when, after a full study of the site, the subsoil user has abandoned more than 25% of its area.
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