Institutional Framework for the Use of Oil and Gas Fields in Ukraine

Abstract

The article examines the modern institutional foundations of the use of oil and gas fields in Ukraine under conditions of martial law, transformation of the public administration system, and European integration processes. The purpose of the study is to analyze the current legal, organizational, economic, and environmental mechanisms of state regulation in the field of subsoil use and to determine the main directions for improving the management system of the oil and gas sector in modern conditions. The research is based on the application of general scientific and special methods, including analysis and synthesis, comparative analysis, systematization, institutional analysis, and a regulatory and legal approach. The article analyzes the mechanisms governing subsoil use and determining the functioning of the Ukrainian oil and gas sector. The peculiarities of the modern public administration system in the field of subsoil use, the role of special permits, electronic auctions, production sharing agreements, and rent regulation mechanisms in ensuring efficient use of oil and gas fields are determined. Considerable attention is paid to the digitalization of subsoil use procedures, reform of the permitting system, increasing management transparency, and adaptation of legislation to European standards of sustainable development. Modern approaches to environmental support of extractive activities, including environmental impact assessment procedures and integration of environmental requirements into the management system of oil and gas projects, are investigated. It is established that the current institutional model of subsoil use management in Ukraine is characterized by a combination of economic, environmental, and administrative instruments aimed at increasing the investment attractiveness of the industry, minimizing regulatory risks, and strengthening the state's energy security. The latest legislative initiatives of 2025–2026 in the field of subsoil use and their impact on the development of the extractive sector are analyzed. The study substantiates the necessity of further improvement of institutional mechanisms for managing oil and gas fields, development of digital regulatory instruments, harmonization of national legislation with European standards, and formation of a comprehensive model for sustainable use of natural resources in Ukraine.