ENVIRONMENTAL IMPACT ASSESSMENT FOR BUSINESS PROJECTS OF FOREIGN INVESTORS IN UKRAINE
08/07/2020
On 18 December 2017, the Law "on Environmental Impact Assessments" entered into force, implementing the standards of the European model of environmental impact assessment set out in Directive 2011/92/EU into national law.
When planning to launch a new project, an enterprise, production or plant in Ukraine, foreign investors are not always interested in the requirements of current environmental legislation. As a result, having even minor violations in this area, the investor is exposed to the danger of liability - up to a temporary ban or suspension of business activities.
One of the main documents that must be obtained for almost each project in Ukraine is the conclusion of the environmental impact assessment, without which the business entity is not entitled to carry out the planned activities. Prior to the start of design work, the investor must conduct a detailed analysis of the environmental impact, assess all alternatives, take into account public opinion and obtain appropriate conclusions from the authorities.
Who needs an EIA report?
It should be noted that only those enterprises that plan to carry out activities that will have environmental risks for the environment are obliged to obtain an EIA reports. This, in particular, activities that include construction, reconstruction, technical re-equipment, expansion, redevelopment, liquidation (dismantling) of facilities, metal production, infrastructure projects, other interventions in the environment.
For this purpose it is extremely important for an investor to obtain a preliminary audit of the environmental legislation of Ukraine.
The main list of environmental and social conditions to be analysed by the Environmental impact assessment (EIA) procedure:
- ambient air quality;
- ambient noise;
- meteorology;
- soil quality;
- groundwater quality;
- surface water quality;
- landscape and visual aspects;
- biodiversity;
- socio-economic characteristics of the area;
- cultural heritage, including architectural and archaeological heritage;
- transportation systems;
- public health and safety.
In general, the EIA procedure consists of the following mandatory steps:
- submission of a notification on the planned activity subject to EIA (in written and electronic form);
- preparation of the EIA report;
- conducting a public discussion of the project, preparation of a relevant report;
- analysis of the EIA report by the authorized state body (relevant departments of ecology and natural resources of local state administrations)
- submission by the state body of the Conclusion on the environmental impact assessment;
- consideration of the Conclusion on the environmental impact assessment before the entity obtains a permit to carry out the planned activity;
- decision-making on the implementation of the planned activity;
- post-project monitoring (if indicated in the EIA Conclusion).
Thus, the EIA can be divided into three main stages:
- preparation of the conclusion by the company;
- communication with the community;
- comprehensive consideration of the report by the authorized body and provision of the corresponding conclusion.
COVID-19 impact on a procedure:
In May 2020 the Ministry of Energy and Environmental Protection launched a working group to assess the risks of EIA public gatherings. This working group presented proposals to minimize physical social interaction and provide remote discussions during the EIA procedure. On 18 June 2020, the Ukrainian parliament adopted amendments to the EIA legislation which allowed public discussions to be conducted remotely via correspondence, removing the need for physical public hearings until 30 days after the end of quarantine.
This document provides general information on the subject and does not constitute a legal opinion or recommendation. Consulting a specialist is recommended before taking an action. No claim arising from the content of or relating to this document can be asserted against NAZALI.