Resource concession

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Resource consessions.png

The Resource concession law acts as a contract between countries – it allows countries to increase the production bonus or to supplement the country income by renting regions and requires a 50% + 1 (simple majority) to pass.

A country can only concede resources from its original regions that are not under foreign occupation. Once accepted by the congress of the conceding country (Country A), the law then requires approval by the concessioning country (Country B), just like the peace treaty law.

Once the concession contract is accepted by both countries, the resource will no longer count towards country A’s productivity bonus and will be added to country B’s resource pool as if connected to the capital (full bonus). The natural resource, however, will not be uprooted from the region and will still count towards the region’s bonuses.

The number of resources a country can have under concession at once is limited. The regions under occupation will still grant productivity bonuses as previously. Companies established in a region where a concession is valid will still benefit from the region productivity of the concessioned resource but the country bonus will no longer apply.

Concession fee

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Every day the resource rental is in effect the concessioning country will be charged for the concession directly from treasury and the fee will be added the the conceding country (country A)’s treasury. The cost for concession (rent fee) is determined based on the rarity (bonus) of the resource concessioned and impact it has on the economy of the country holding the concession.

Resources Rarity Bonus Daily % of GDP
Sand, Iron, Fish, Magnesium Very common 10% 1% of industry GDP
Wood, Aluminum, Fruits, Titanium Common 15% 2% of industry GDP
Clay, Oil, Cattle, Wolfram Uncommon 20% 3% of industry GDP
Limestone, Saltpeter, Grain, Cobalt Rare 25% 4% of industry GDP
Granite, Rubber, Deer, Neodymium Very rare 30% 5% of industry GDP

The concession fee will be additive and concessioning two or more resources from the same industry branch will increase the GDP fee accordingly. Example: renting Cattle (3% fee) and Deer (5% fee) will result in a total of 8% daily fee from the Food Industry GDP for the previous day.

A country holding a concession on a resource will benefit from the extra productivity bonus as long as the original country owns the region for which the concession is valid. Losing the region by the original owner will not break the concession (as they might be able to recover it by the end of the duration of the concession) and the concessioning country (Country B) will still be charged every day.

FAQ

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  • Q: Will I rent just one particular resource from a region or do I have to rent every resource in that specific region? Am I conceding by territory or by specific resource?
    • A: Territory is not conceded. Concession is done per region and per resource. In order to rent all the resources in a region (let’s assume 3), 3 different concession laws will have to be passed.
  • Q: What happens when the country renting a resource also occupies the territory that the resource belongs? Do they get 100% of the rented resource and 50% of the other resources on the territory or does everything go down to 50%, assuming no border.
    • A: You cannot concession resources to/from countries you are at war with, nor can you give into concession resources from conquered regions.
  • Q: Does Natural Enemy or an Active War affect the concession between the countries?
    • A: Yes, they do. You cannot have good Trading Relations with hostile countries.
  • Q: Will the concession with Country A be dropped after a Natural Enemy or Declare a War law has passed?
    • A: Yes.
  • Q: What will happen when a country does not have enough funds to pay for the concession?
    • A: The concession will be dropped.
  • Q: Can concession law be proposed between countries with either: an active Trade Embargo, Natural Enemy or a War?
    • A: No.
  • Q: What is the resource concession limit?
    • A: A country cannot take more than 3 resources in concession at any given time.
  • Q: Is the concession limit applied to the country which owns the region or the country which receives the concession?
    • A: The concession limit is applied to the receiving country. As an example, France can give in concession all of its food resources, but France will only be able to receive 3 resources from other countries.
  • Q: Can the Concession Fee be affected by any other circumstances?
    • A: Yes, the Concession Fee will be affected by Tribute to other countries (which occupy their core regions) AND Dictatorship Upkeep. Eg: If a country under dictatorship rents a resource for which it has a 100,000 daily fee, dictatorship upkeep will consume half of the amount destined for the treasury.