Source Pravda.Ru

Companies Working Under Product-Sharing Agreement May Lose Licenses

Companies that are working under the Product-Sharing Agreement should prepare their business plans for the development of mineral deposits until the end of this year, Economy Minister German Gref announced at a meeting with journalists today. He noted that they issued 27 licenses for the development of 28 mineral deposits. Earlier, the ministry's officials decided that a special commission should be created to set up terms for the development of deposits on the basis of geological research and business plans. However, it turned out in practice that such commissions are not effective. Gref recalled that companies were recommended to elaborate on their business plans and financial layouts in June but only 4 companies presented such plans. After this the ministry decided to withdraw licenses if companies do not prepare their business plans before the end of his year. Gref stated that terms for the withdrawal of licenses have not been specified yet.

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