Meeting with Velyki Sorochyntsi ATC on EITI Implementation
14 April 2017

On 12 April, experts of the Social Service of Ukraine, Poltava Branch, held a meeting with citizens of the Velyki Sorochyntsi Amalgamated Territorial Community (ATC), during which they told the audience about the Extractive Industries Transparency Initiative (EITI) and they key indicators of the second EITI Report for 2014-2015.

Five extractive companies have their operations in the jurisdiction of the Velyki Sorochyntsi ATC. Two of those, viz., PrAT PLAST and TOV PRAIM-GAZ, have never provided information about the amount of extracted hydrocarbons and the taxes and fees paid into budgets of different levels. The remaining companies are working with communities under social agreements (e.g., PrAT NAFTOGAZVYDOBUVANNIA) and publish their data on the production output and taxes paid.

Opaqueness of extractive companies is possible due to lack of responsibility for non-disclosure of information. The legislative draft #4840 “On Disclosure of Information in Extractive Industries” requires that extractive companies should publish their data about payments due for each field. However, when the bill was put to the ballot on 21 February, four votes were missing in the Verkhovna Rada to pass the bill in the first reading.

The community representatives have shared their vision of openness and transparency in the extractive industry. In particular, Pavlo Poliekov, chairman of the Velyki Sorochyntsi Village ATC, has suggested to keep community’s own account of the hydrocarbons extracted in their jurisdiction, as only then they could count on payment of taxes on the whole amount of gas extracted. For the community to be certain that readings of the meters, which must be installed on each well, are correct, a commission, which verifies meter readings, should also include representatives of the public.

Discussed at the meeting were also the problems resulting from operation of extractive industries, such as destruction of road surface by heavy trucks, reduced level of water in wells and in the river etc.