NON-COMPLIANCE WITH EIA REQUIREMENTS: LEGAL CONSEQUENCES FOR ENERGY PROJECTS

Environmental Impact Assessment (EIA) requirements in Ukraine are regulated by the Law of Ukraine "On Environmental Impact Assessment" No. 2059-VIII, which was adopted on May 23, 2017, entered into force on June 18, 2017, and consists of the following key elements:

• Mandatory EIA for planned activities that may have a significant impact on the environment. The law provides an exhaustive list of activities and facilities subject to EIA, divided into two categories based on their potential risk level.
• Preparation of an EIA report by the business entity, which must include a description of the environmental state in the area, an analysis of the project's potential impacts, alternative implementation options, and a description of measures to prevent and minimize negative consequences.
• Conducting public consultations on the EIA report to involve the public in decision-making, ensure transparency, and account for public interests.
• Analysis of the submitted information by the authorized body, including the results of public consultations, and the issuance of a reasoned EIA conclusion.
• Incorporation of the EIA conclusion into the decision on the planned activity, without which it is prohibited to commence any activity subject to assessment.
• Prohibition of voluntary procedures: if an activity is not included in the list, an EIA is not conducted and must not be performed.
• EIA principles: consideration of project alternatives, comprehensive assessment of technical, environmental, social, and economic aspects, and the developer's responsibility for the project's implementation consequences.
• Maintenance of the Unified EIA Register, which ensures transparency and oversight of the procedure.

Thus, EIA requirements are aimed at ensuring a comprehensive assessment of potential environmental risks, public engagement, transparent decision-making, and the prevention of negative environmental impacts during the implementation of planned activities.

Failure to comply with legislative requirements regarding the Environmental Impact Assessment (EIA) procedure for energy projects in Ukraine can lead to significant legal, administrative, and financial consequences, including:

• Refusal to issue permits. Without a proper EIA conclusion, it is impossible to obtain permits for pollutant emissions into the atmosphere or other documents required to launch or operate energy facilities. The EIA conclusion is a mandatory element of the approval process and is submitted to regulatory authorities as confirmation of the planned activity's admissibility.
• Legal liability. Article 15 of the Law of Ukraine "On Environmental Impact Assessment" outlines offenses in the field of EIA and the types of liability, such as administrative, civil, disciplinary, or criminal liability for non-compliance with EIA procedures. Both business entities and their officials can be held liable.
• Litigation and cancellation of permits. Non-compliance of an EIA report with legislative standards often becomes grounds for challenging permit decisions in court. 
• Additional restrictions and conditions. If violations or inadequate assessment quality are identified, restrictions on project implementation may be imposed, including requirements for a new assessment, risk mitigation measures, monitoring conditions, and cross-border impact assessments.
• Risk of losing investment appeal. Ignoring EIA requirements or poor report quality creates risks for securing funding, especially in green energy projects that require significant long-term investment. Failure to follow EIA procedures can lead to delays and financial losses.
• Mandatory EIA for ancillary activities. Even activities that are not the primary focus of an enterprise but have a potential environmental impact (e.g., installing new emission sources) are subject to EIA requirements.

Legal practice of Fedotov & Partners confirms that proper legal support during the EIA process significantly reduces risks for developers and investors. Our firm’s specialists have extensive experience in managing environmental procedures and protecting client interests in disputes related to permitting and judicial appeals.

Neglecting EIA requirements or treating them as a mere formality can lead to sanctions, project delays, or complete shutdowns, as well as significant resource and reputational losses. Lawful and environmentally responsible operations in the energy sector are critical for sustainable development.

Administrative liability for EIA violations

Article 15, Clause 2 of the Law of Ukraine "On Environmental Impact Assessment" establishes various types of liability for legislative violations, including administrative penalties. Offenses and their corresponding sanctions are regulated by the Code of Ukraine on Administrative Offenses:

• Providing knowingly incomplete or false data regarding the environmental impact of activities, violating legislative requirements in the field of EIA, as well as failing to inform the public, conduct discussions, or ignoring their results, is punishable by a fine of 50–200 tax-free minimum incomes for individual entrepreneurs and officials.
• Failure to comply with environmental conditions specified in EIA conclusions or activity permits during business operations is subject to a fine of 200–500 tax-free minimum incomes for officials and individual entrepreneurs.
• Violating the legally established EIA procedure or timelines, influencing conclusions, or refusing to issue a conclusion is punishable by a fine of 200–400 tax-free minimum incomes for officials. Repeat offenses within one year are subject to a fine of 400–600 tax-free minimum incomes and the deprivation of the right to engage in certain activities or hold specific positions for one year.

Does Ukrainian legislation provide for criminal liability for EIA violations?

Yes, criminal liability is provided for, though not for the violation of the EIA procedure itself, but rather if such a violation results in severe consequences, loss of life, or significant environmental pollution.

According to Article 236 of the Criminal Code of Ukraine, this crime is punishable by imprisonment for a term of 5–10 years, with a ban on holding certain positions or engaging in certain activities for up to 3 years.

The Environmental Impact Assessment (EIA) procedure is a key element in the lawful implementation of energy projects in Ukraine. Failure to comply can lead to administrative and criminal sanctions, the revocation of permits, the suspension of operations, and substantial financial losses.

Lawyers at Fedotov & Partners note that most risks arise from treating the procedure as a formality, failing to involve legal counsel in a timely manner, and ignoring mandatory requirements. Proper legal support at all stages of the EIA, from report preparation to public engagement, allows for the minimization of legal consequences and ensures project compliance with environmental standards.

Given the growing focus on environmental responsibility, the EIA must be an integrated part of strategic business planning, especially in the energy sector.