THE LEGAL FORMS OF ATTRACTING FOREIGN INVESTEMENT IN THE FIELD OF MINING

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THE LEGAL FORMS OF ATTRACTING FOREIGN INVESTEMENT IN THE FIELD OF MINING

Journal Title: Економічна теорія та право - Year 2016, Vol 4, Issue 27

Abstract

Problem setting. The problem of mining is one of the most important in the field of energy security for developing countries. In this case developing countries with an existing technological capacity are not always able to achieve the necessary level of production and the creation of new manufactures as well as further work in this direction as a rule, don’t have the necessary material base. In this case, it is necessary to implement the investment policy particularly to attract foreign capital to this sphere. Through this, theoretical and practical issues of the legal forms of attracting foreign investment in the field of mining are interesting for scientific research. Recent research and publications analysis. This problem is the subject of many legal, economic, technical and other scientific research, as evidenced by numerous works of domestic and foreign experts, such as: N. Drozdov, R. Kirin, S. Nemchenko, I. Nikolaev, G. Puzanova, M. Sazhina, I. Stolyarov, S. Teren, K. Bindeman and others. Paper objective. The purpose of this article is a theoretical analysis of the legal forms of attracting foreign investment in the field of mining. The analysis is based on the international experience considering to reflection of these instruments in the legal system of Ukraine. Paper main body. The result of finding and attracting additional investment is the actual participation of foreign investors in activities of national economic entities during a certain time on the pre-defined conditions in the agreement or economic activities of the foreign investors in the sphere of Ukrainian legislation. The variety of the forms of the participation of foreign investors in activities of national economic entities, operating in the field of mining, and economic activities of the foreign investors in the sphere of Ukrainian legislation form a system of four basic forms: – joint venture agreement; – concession; – production-sharing agreement; – service contract. It should be noted that the legal forms of attracting foreign investment in the field of mining formed as a result of the established practice for nearly a half of a century. Because of this, we can conclude the unconditional efficiency of these tools. Despite this, these forms still have not found their adequate reflection in the sphere of Ukrainian legislation, and as a result are virtually not applied in Ukraine. Conclusions of the research. The international practice of attracting foreign capital in the field of mining has developed a sustainable system, which consists of four basic forms (of agreements). Due to these agreements any country can to attract the necessary investment. The general rule for selecting one or another form of agreements depends on the level of economic, technological and financial potential of a country, the level of minerals prospecting and the mineral reserves, geographical region and specific traditions of subsoil use and is determined in each case individually. Short Abstract for an article Abstract. The problem of mining is one of the most important in the field of energy security for developing countries. In this case developing countries with an existing technological capacity are not always able to achieve the necessary level of production and the creation of new manufactures as well as further work in this direction as a rule, don’t have the necessary material base. In this case, there is a need to attract foreign capital, which can be implemented on the basis of joint venture agreements, concessions, productionsharing agreements and service contracts. The article analyzes these agreements.

Authors and Affiliations

Богдан Вікторович Янишен

Keywords

EP ID EP183610
DOI -
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