Features and Benefits of the Concession Mechanism in the Sphere of Subsoil Management

Abstract

The article presents the interaction scheme worked out by the authors which shows state and private sector interests in public-private partnership. Four main possible ways of transferring mineral deposits to an investor for the development are highlighted and tax regulations are described. The authors considered the advantages of the concession as a way to facilitate investment processes in the development of mineral deposits that are difficult to access. The authors compared the risks that occur under concession agreements and production sharing agreements when developing mineral deposits. Data on the historical experience of this form of subsoil management in the world and in Russia are described in the article. The need to elaborate legal platform for application of concession mechanisms in mineral deposits development in Russia has been determined.