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News / 31 January 2014 | 16:57
Compulsory insurance during industrial development approved

Compulsory insurance during industrial development approved

At its meeting on Jan. 29, 2014, the Cabinet of Ministers approved compulsory insurance of property risks during industrial development of oil/gas fields and research, production, and use of natural gas (methane) around coal deposits, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

The project was developed by the government to ensure the compensation of damage caused to environment due to accidents or technical problems during development of oil and gas fields and production of coalmine methane.

Industrial experts note that activity of companies involved in production and processing of oil and gas is directly linked to pollution threats. Therefore, insurance mechanism is required to guarantee compensation for damage to environment of Ukraine.

In the adopted document, insured sum of one compulsory insurance contract will be: for production of over 100 million m3 of gas or 15 million tons of oil and gas condensate – 10 million non-taxable minimum incomes; 20 million m3 of gas or 3 tons of oil and gas condensate to 100 million m3 of gas or 15 million tons of oil and gas condensate – 6 million; for less than 20 million m3 of gas or 3 tons of oil and gas condensate – 4 million of non-taxable minimum incomes.

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