U.S.-Ukraine Business Council (USUBC) Project: White Paper on Legal and Governance Reform in Ukraine: Strategic Priorities / Business and Economic Sector
For more than three years the USUBC Legal Committee, composed of international and local law firms and in-house counsel of the USUBC corporate members, has carried out an on-going pro bono project on the White Paper on Legal and Governance Reform in Ukraine: Strategic Priorities / Business and Economic Sector. The previous editions of the White Paper were prepared in cooperation with various distinguished organizations and experts. In 2017 we are working on the Third Edition of the White Paper - this time jointly with the newly established UkraineInvest (Ukraine Investment Promotion Office), an independent institution tasked with substantially improving the ease of doing business in Ukraine and promoting Ukraine globally.

The White Paper editions, and the conferences that follow each release, indeed made a substantive contribution to the reform process in Ukraine: many of our ideas have been reflected in the reform agenda of the Supreme Rada, the Cabinet of Ministers and Presidential Administration, have been cited in multiple publications and at conferences, and were relied upon by the civic society, business community, think-tanks, international institutions, diplomatic community, and many other stakeholders.

The White Paper has always focuses on the systemic high-level view of the entire reform process in two aspects: fundamental and key sectors. In preparing the First and Second Edition of the White Paper we made our reform proposals based on the analytical approach. For the Third Edition, however, we agreed to work from the practical angle first, in cooperation with UkraineInvest, later summarizing this practical experience in combination with analytical thinking in the White Paper. As our work progresses, more information about the Third Edition of the White Paper will be posted at Legal Reforms Publications

The Second Edition of the White Paper was presented at the second Conference on Legal and Governance Reform on 30 October 2015 at the Kyiv School of Economics (KSE). Approximately 100 representatives of the legal, business and diplomatic community, civic society, academia, the Government, the National Bank and the Presidential Administration of Ukraine gathered to discuss the proposed reforms. You may download the White Paper in English and Ukrainian. You may also view the Conference Program in English and Ukrainian. The conference can be watched on YouTube

The First Edition of the White Paper was presented at the first Conference on Legal and Governance Reform on 15 October 2014 at the Kyiv School of Economics. The conference can be watched (starts with 30:30) on https://www.youtube.com/watch?v=MDerRFMCKeY. The final Program is available here. The media coverage by Yurydychna Gazeta is available in PDF format here. The English and Ukrainian versions of the White Paper are at USUBC Web site.

ECA (Europe-Caucasus-Asia) Legal Forum

In 2006 our law firm founded the ECA (Europe-Caucuses-Asia) Legal Forum, which has evolved into the main platform in the ECA region for the wide-scale gathering of leading business lawyers, becoming as of 2015 a part of the International Bar Association (IBA).
It was highly symbolic that the first Forum of the new reincarnation - the 2016 IBA Europe-Caucasus-Asia Forum (IBA ECA Forum) - was successfully held in Ukraine, where is started more than ten years ago. On 15-19 June 2016 it brought together over 100 leaders in the legal profession from 27 countries.
The Forum was hosted by Kiev and Lviv, which are among the most exciting cities in Europe, bustling with business and cultural activity.
Detailed information about the IBA ECA Forum 2016 is at
http://www.ibanet.org/Conferences/
conf741.aspx

A video about ECA Forum coming to Ukraine can be watched at
https://vimeo.com/165113825
and a short film summarizing results of the Forum can be watched at
https://vimeo.com/176326210

Legal Alerts

30 December 2015
Amendments to the Ukrainian Legislation regarding Banking, Limited Liability Companies and the Ukrainian-Cypriot Double Taxation Avoidance Convention.

As discussed in our Legal Alert dated 9 September 2015, and in our Legal Update dated 27 October 2015, on 20 August 2015 the National Bank of Ukraine (the "NBU") introduced a ban on replacing a party (a lender or a borrower), including through the assignment of a claim, in cross-border loans. This ban was further prolonged until 4 December 2015.

On 4 December 2015, the NBU issued the Resolution of the Board of the NBU No. 863 "On Regulating the Situation on the Monetary and Currency Markets of Ukraine" ("Resolution 863"), in which it liberalized some of the restrictions, but kept in place the ban on replacing a party in crossborder loans and some other restrictions.

27 October 2015
Follow-up on the NBU Ban to Replacing a Lender or a Borrower (including through the assignment of claim) in cross-border loan agreements

As discussed in our Legal Alert dated 9 September 2015, on 20 August 2015 the National Bank of Ukraine (the "NBU") issued Resolution of the Board of the NBU No. 551 "On the Amendments to the Resolution of the Board of the NBU dated 3 June 2015 No. 354", in effect introducing a ban on replacing a party (a lender or a borrower), including through the assignment of a claim, in cross-border loans. This ban was further prolonged until 4 December 2015, and, to certain extent, liberalized by the Resolution of the Board of the NBU No. 581 on 3 September 2015 "On Correcting the Situation on the Monetary and Currency Markets of Ukraine" ("Resolution 581"). 

9 September 2015
NBU Ban on Replacing a Lender or a Borrower (including through the assignment of a claim) in Cross-Border Loan Agreements

On 20 August 2015 the National Bank of Ukraine (the "NBU") issued Resolution of the Board of the NBU No. 551 "On the Amendments to the Resolution of the Board of the NBU dated 3 June 2015 No. 354” (“Resolution 551”), in effect introducing a ban on replacing a party (a lender or a borrower), including through the assignment of a claim, in cross-border loans. Because all cross-border loans and changes to them are subject to mandatory registration with NBU, the Resolution 551 achieved this effect by banning (with some exceptions) registration of changes to cross-border loans aimed at assignment of a claim in the cross-border loans, and replacement of a creditor or a borrower. It should be mentioned, that all these actions, banned by NBU, are perfectly legal under Ukrainian law, in particular this ban is in direct conflict with Article 512 of the Civil Code of Ukraine, which expressly allows replacement of a creditor/lender (including by the assignment of claim) in the loan agreement.

7 September 2015
Transfer Pricing Amendments

On August 13, 2015, the Law "On Amendment of the Tax Code of Ukraine Regarding Transfer Pricing" dated July 15, 2015 (the "Law") came into effect.

August 2015
Currency Control of Services Delivered Through the Internet

On 7 July 2015 the National Bank of Ukraine issued a letter No. 22-01012/46746 "Concerning the control over the operations of the residents which envisage the export of services to the non-residents through the Internet", in which it clarified what documents must be requested by banks from their clients for the currency control clearance. The Letter intends to relax the requirements as to the documents that must be presented, in the process of export of services through the Internet, by Ukrainian residents to their banks.

31 March 2015
Legal Status of the Autonomous Republic of Crimea: Overview of the Key Legislation
Правовой статус автономной республики Крым: обзор основных нормативных актов

9 January 2015
Filing Information on Company's Ultimate Beneficiaries with the State Register

As we reported earlier, Ukraine now requires that the information on a company's ultimate beneficiaries is filed with the State Register of Legal Entities and Individuals-Entrepreneurs (hereinafter – the "State Register"). This requirement was introduced by the Law "On Amending Certain Legislative Acts of Ukraine Regarding the Identification of the Ultimate Beneficiaries of Legal Entities and Public Persons" which took effect on 25 November 2014 (hereinafter – the "Law").

19 November 2014
Ukrainian Tax and Currency Laws – Recent Developments

In this Legal Update we provide an outline of the key developments of the last several months in the taxation and currency regime of Ukraine.

19 November 2014
Anti-corruption Legislative Developments

In October 2014 the Verkhovna Rada of Ukraine adopted and the President signed a new anticorruption package consisting of 4 laws:
  1. Law "On Fundamentals of the State Anti-Corruption Policy (Anticorruption Strategy) in 2014 - 2017" (took effect on 26 October 2014) (the "Anticorruption Strategy");
  2. Law "On Preventing Corruption" (took effect on 26 October 2014 to become effective on 26 April 2015);
  3. Law "On the State Anti-Corruption Bureau" (to take effect on 25 January 2015);
  4. Law "On Amending Certain Legislative Acts of Ukraine Regarding the Identification of Ultimate Beneficiaries of Legal Entities and Public Persons" (to take effect on 25 November 2014).

    13 November 2014
    Cancellation of the Mandatory Corporate Seal Requirement

    Ukraine, until recently, maintained an archaic requirement for a corporate seal as a mandatory attribute of every legal entity. In order to be valid most of the documents, including contracts and contractual documentation, had to be attested by the corporate seal. Abolishing this requirement is a welcoming development considerably simplifying and modernizing business operations. Effective 31 October 2014, the use of corporate seals by legal entities is optional (in contracts it is optional unless the parties decide to make it mandatory).

    28 апреля 2014 г.
    Относительно ведения бизнеса в Крыму в условиях двух правовых систем

    24 апреля наша компания приняла участие в Круглом столе, организованном Европейской бизнес ассоциацией и посвященном ведению бизнеса в Крыму в условиях двух правовых систем – российской и украинской. Основной темой обсуждения были вопросы адаптации бизнеса к установившемуся в реальности параллельному существованию законодательных режимов двух государств.

    30 January 2014
    Personal Data Protection Legal Framework Liberalized; the Ombudsman Adopts New Personal Data Protection Regulations

    Further to our Legal Alerts concerning the legal regime for personal data protection, we would like to remind you that on 1 January 2014 amendments to Law of Ukraine "On Personal Data Protection" came into force: the registration requirement for personal databases was cancelled and the regulator – the State Service of Ukraine on Personal Data Protection – was liquidated. The Human Rights Commissioner of the Verkhovna Rada (Parliament) of Ukraine (the "Ombudsman") became the authorized body for personal data protection.

    17 December 2013
    Liberalization of the Legal Regime for Personal Data Protection

    Further to our Legal Alerts concerning the legal regime for personal data protection, we would like to remind you that starting from 1 January 2014 registration requirement for personal databases is to be cancelled and the regulator – the State Service of Ukraine on Personal Data Protection – is to be liquidated.

    12 September 2013
    Founding of the Interagency Commission in Charge of the Organization and Conclusion of Production-Sharing Agreements

    Following our Legal Alert on reinstatement of the Interagency Commission in Charge of the Organization and Conclusion of Production-Sharing Agreements (the "PSA Commission") available at: http://www.rulg.com/documents/PSA_Commission_Restored_2013_July24.pdf please be advised that the Resolution of the Cabinet of Ministers of Ukraine No.644 on "Founding of the Interagency Commission in Charge of the Organization and Conclusion of Production-Sharing Agreements" took effect on 10 September 2013.

    6 September 2013
    Draft Amendments to the Procedure for Disposing of Geological Information

    A Draft Resolution of the Cabinet of Ministers of Ukraine ("Draft Resolution") posted on the website of the State Geology and Subsoil Service ("Derzhgeonadra") proposes to introduce amendments to the existing Regulations Concerning the Procedure for Disposing of Geological Information, approved by Resolution No. 423 of the Cabinet of Ministers of Ukraine dated 13 June 1995 (the "Regulations"). Although the proposed amendments are brief, if adopted they may have serious negative effect on the investment projects in the area of study, exploration and productions of natural resources.

    16 August 2013
    New Transfer Pricing Requirements

    Further to our Legal Alert on New Transfer Pricing Requirements in Ukraine, dated 22 July 2013 and posted at http://www.rulg.com/documents/Transfer_Pricing_2013_July22-rvs.pdf, we would like to inform you that the Draft Law of Ukraine "On Introducing Changes to the Tax Code of Ukraine Regarding Transfer Pricing" (the "Transfer Pricing Law") was signed by the President on 31 July 2013 and will take effect as of 1 September 2013. We note that several changes were made in the final text of the Transfer Pricing Law as compared to its draft version on which we based our previous Legal Alert.

    2 August 2013
    New Procedure for Issuing Employment Permits to Foreigners (8/2/13)

    A new procedure for issuing, extending and canceling Employment Permits for foreigners (foreign nationals and stateless persons), approved by the Cabinet of Ministers Resolution No. 437, took effect on 5 July 2013 (the "Resolution").

    1 August 2013
    Liberalization of the Legal Regime for Personal Data Protection

    Further to our Legal Alerts on the legal regime for personal data protection, we are pleased to report that the Law of Ukraine "On Amending Certain Ukrainian Legislative Acts Concerning Improvement of Personal Data Protection System" No. 383-VII dated 03 July 2013 (the "Law On Amending Personal Data Protection System") was signed by the President and will take effect on 1 January 2014. It fundamentally liberalizes the personal data protection regime in Ukraine, and in particular cancels the burdensome registration requirement for personal databases and provides for liquidation of the State Service of Ukraine on Personal Data Protection.

    24 July 2013
    The PSA Interagency Commission is Restored

    "On Amendments to the Law of Ukraine "On Production Sharing Agreements" Concerning the State Regulation of the Conclusion and Performance of the Agreements" (the "PSA Commission Amendments Law") was recently signed by the President and took effect on 21 July 2013. The main purpose of the PSA Commission Amendments Law is to restore the PSA Interagency Commission (the "PSA Commission"), which was surprisingly abolished as of December 2012, replaced at various degrees with "the central body of executive power in the sphere of geological study and rational use of subsoil", which at present is the State Service for Geology and Subsoil of Ukraine (“Derzhgeonadra”) and with the Ministry of Ecology and Natural Resources ("Ministry of Ecology").

    22 July 2013
    New Transfer Pricing Requirements

    The Draft Law of Ukraine "On Introducing Changes to the Tax Code of Ukraine Regarding Transfer Pricing" (the "Transfer Pricing Law") was voted for by the Ukrainian Parliament on 04 July 2013. On 16 July 2013, the Transfer Pricing Law was directed to the President for signing. If signed by the President, the Transfer Pricing Law will become effective starting 01 September 2013.

    26 June 2013
    Summary of Key Legal Developments in Ukraine: 2012 - 2013

    This Summary outlines the most significant recent and proposed changes to the Ukrainian law affecting business and investment environment.

    14 June 2013
    Anticorruption Legislative Developments

    We continue keeping you updated on the anticorruption legislative developments. In 2013 the Ukrainian parliament (the “Rada”) has been very active adopting new anticorruption laws to meet the goals of the 2013 Plan of Priority Steps for Ukraine's European Union Integration approved by Ordinance No. 73-r of the Cabinet of Ministers of Ukraine dated 13 February 2013.

    27 May 2013
    Further Liberalization of the Legal Regime for Personal Data Protection

    Further to our Legal Alerts concerning the legal regime for personal data protection, we would like to update you on the most recent developments. On 14 May 2013 the Verkhovna Rada of Ukraine adopted the Bill No. 2836 dated 17 April 2013 (the "Bill"), which if signed by the President will fundamentally liberalize the personal data protection regime in Ukraine, including cancellation of registration requirement for personal databases and liquidation of the State Service of Ukraine on Personal Data Protection.

    31 January 2013
    Recent Changes in the Legal Regime for Personal Data Protection

    Further to our Legal Alerts concerning the legal regime for personal data protection, we would like to remind you that on 20 December 2012 a number of important amendments to the Law “On Personal Data Protection” (the “Law”) came into force, including: The new/updated definitions were introduced into the Law. For example, the amended definition of the consent of subject of personal data (i.e. individual) provides that the consent of the individual may be given not only in written, but in any other form, which would allow to make the conclusion that the relevant consent was granted; also new definitions of data file and personal data receiver were introduced.

    6 December 2012
    National Bank of Ukraine Clarified the Timeframe for the Registration of Cross-border Loans

    The ambiguity of the timeframe for the registration of cross-border loans by non-banking resident-borrowers (including inter-company loans) with the National Bank of Ukraine (the "NBU") was finally resolved by the NBU Resolution No. 450 dated 29 October 2012 "On Amendments to Some of the NBU Regulations" stipulating, inter alia, that a regional NBU branch must register a cross-border loan within 5 business days following the date of submission of the required documents. NBU Resolution No. 450 took effect on 9 November 2012.

    5 November 2012
    Important and comprehensive improvements to the PSA Regime in Ukraine

    The new Law "On Amendments to Selected Legislative Acts of Ukraine Concerning Execution of Production Sharing Agreements (“PSA Amendments Law”) was recently signed by the President and is expected to take effect soon, introducing a number of important amendments into the PSA Law and a few other laws.

    28 September 2012
    Concept of the National Program for the Development of Competition in 2013-2023

    On 19 September 2012, the Cabinet of Ministers of Ukraine adopted Ordinance No. 690-r "On Approving the Concept of the National Program for the Development of Competition in 2013-2023" (the "Concept"). The Concept was developed by the Antimonopoly Committee of Ukraine (the "AMC") within the broader economic reforms context. Considering an increasingly active position of the AMC as the regulator in the area of antitrust and competition, the Concept must be seriously considered by the companies doing business in Ukraine. The main purpose of the Concept is to develop the competition as one of the main instruments of ensuring sustainable economic growth, improvement of conditions for effective functioning of commodity markets, as well as their legislative regulation.

    31 August 2012
    New PSA Law Amendments Bill

    On 30 August, a new Bill #11119 was registered with the Verkhovna Rada (Parliament) of Ukraine, introducing a number of important amendments into the PSA Law and a few other laws, in particular with regards to the conversion of the existing Subsoil Licenses into production sharing agreements (“PSA”). The Bill accumulates a long list of various amendments proposed in the past few years by the investment and legal community, including by our firm, as well as amendments needed for the Government of Ukraine (“GOU”) to move forward on the two PSAs currently under negotiations (Olesska and Yuzivska).

    31 July 2012
    Anticorruption Legislative Developments

    The Parliament of Ukraine has adopted the Law “On Code of Conduct” (for state officials) No. 4722-VI which came into effect on 13 July 2012. On 10 July 2012 the Ministry of Justice of Ukraine issued the Clarification to the Law of Ukraine "On the Fundamentals of Prevention and Combating of Corruption in Ukraine".  

    27 June 2012
    AMC Warns on Maximum Fines for Completing Economic Concentrations without its Prior Approval

    According to the most recent news posted on the official website of the Antimonopoly Committee of Ukraine (AMC), it warns the companies that economic concentrations, such as domestic and international mergers & acquisitions, cannot be implemented without its prior approval, and that violations of this requirement will be subject to maximum fines. 

    14 June 2012
    Sanctions for Violation of Legislation on Personal Data Protection May be Postponed until 1 February 2013.

    Further to our Legal Alerts concerning legal regime for the personal data protection, we would like to remind you that the Law “On Amending Certain Legislative Acts of Ukraine regarding Enhancement of Responsibility for Violation of Legislation on Personal Data Protection” (the “Law”) stipulates serious administrative and criminal sanctions for violations in the area of personal data protection; which are scheduled to take effect as of 1 July 2012. 

    19 March 2012
    Ukrainian Customs Announce Massive Audit and Enforcement Campaign

    The State Customs Service of Ukraine ("SCS") in its Letter "On Increasing Payments to the Budget" (the “Letter”) announced as of 1 April 2012 massive audit and enforcement campaign, and called taxpayers to voluntarily comply with customs payments before this date. Failure to comply will result in individual audits and sanctions, in particular for the failure to declare the specific elements that must be included in the customs value of goods (including royalty, freight, engineering, insurance costs, etc.).

    3 February 2012
    Liability for Violation of Legislation on Personal Data Protection is Postponed and Procedure for Processing of Personal Data is Adopted

    Further to our Legal Alerts concerning legal regime for the personal data protection, we are pleased to inform you that 31 January 2012 a new Law was signed by the President, which postpones the liability for violations in the area of personal data protection for six month. The full name of this Law is the Law of Ukraine "On Amendments to the Final Provisions of the Law of Ukraine "On Amending Certain Legislative Acts of Ukraine regarding Enhancement of Responsibility for Violation of Legislation on Personal Data Protection".

    21 December 2011
    The Applications for Registering Personal Data Databases are Due by 31 December 2011.

    Further to our Legal Alerts and updates concerning new legal regime for the personal data protection, please be reminded that applications for the registration of a base (bases) must be filed with the State Personal Data Protection Service by 31 December 2011.

    15 November 2011
    Update on Deregulation Measures

    The Government of Ukraine (“GOU”) – the Verkhovna Rada (the "Parliament") and the Cabinet of Ministers - continue developing and enacting measures in the sphere of deregulation of business activity and improvement of the regulatory regime (customs, public procurement and other sectors). In this Alert we offer a brief overview of the key business deregulation measures pending or enacted within the past several months.

    14 November 2011
    Electronic State Registration of Companies and Individuals- Entrepreneurs

    In this Alert we summarize the latest developments on implementation of the Law "On Amendments to the Law of Ukraine "On the State Registration of Legal Entities and Individuals - Entrepreneurs" Concerning Electronic Registration" (hereinafter – the “Law”), which took effect on 14 August 2011.

    7 November 2011
    Amendments to the Civil Code of Ukraine

    On 16 October 2011, the Law of Ukraine "On Amendments to Specific Legislative Acts of Ukraine Aimed at Governing Relations between Creditors and Consumers of Financial Services" (the "Law") and amended a number of regulations. In particular, the Law introduced amendments to the Civil Code providing that a loan interest rate may be fixed or floating. The type of the interest rate shall be determined in the loan agreement upon the creditor's and the debtor's consent.

    24 October 2011
    Update on Registration of Legal Entities Based on the Model Charter

    As we reported earlier, the Law of Ukraine "On Amending Some Legislative Acts of Ukraine Concerning the Introduction of the Principle of the State Registration of Legal Entities on the Basis of the Model Charter" (hereinafter – the "Law") took effect on 28 August 2011. The Law amends the Commercial Code and Civil Code, as well as the Law of Ukraine "On Registering Legal Entities and Individuals-Entrepreneurs" and the Law of Ukraine "On Economic Societies". The Law allows a simplified incorporation of a legal entity on the basis of the model charter, i.e. without approving an individual charter.

    24 October 2011
    New Rules on Visa and Status of Foreigners

    As we reported earlier, on 10 September 2011 Resolution No. 567 of the Cabinet of Ministers of Ukraine "On Approving the Rules of Issuing Visas Authorizing Entry into Ukraine and Transit Through its Territory" (the “Resolution”) came into force. The Resolution introduces major changes in the Ukrainian visa rules and extends the list of persons entitled to obtain temporary residence permits (“TRP”). In this Alert we take into account the new developments, which took place after the Resolution took effect, including adoption of the new Law of Ukraine "On the Status of Foreign Nationals and Stateless Persons". In general, the new legislation is aimed at standardizing the visa and temporary residence rules and practice, and bringing these rules closer to the European Union standards.

    30 August 2011
    Recent Amendments to Antitrust Regulations

    The Law of Ukraine "On Amendments to Certain Laws of Ukraine Concerning Improvement of the Legal Regulation of Economic Competition Protection" (the ”Amendments”) entered into force 27 July 2011. It clarified some issues of considering concerted actions, concentration applications and conclusions by the Antimonopoly Committee of Ukraine (“AMC”).

    10 August 2011
    Law of Ukraine "On state Land Cadastre" Adopted

    On 2 August 2011, the Ukrainian President signed Law of Ukraine No. 3613-VI "On the State Land Cadastre" dated 7 July 2011. The Law is one of the two Laws, which when they take force, will cancel the moratorium on sale of agricultural lands. The Law will take effect on 1 January 2012. According to clause 15 of the Transitional Provisions of the Land Code of Ukraine, after the Law takes effect the purchase and sale and other alienation of land plots and land shares will be introduced, subject to the adoption and entry into force of the second law – the Law of Ukraine "On the Land Market" (the respective Bill has been submitted to the Verkhovna Rada of Ukraine and should be considered in the autumn of 2011). Read the Alert in English and in Ukrainian

    12 July 2011
    New Ukrainian Visa Regime

    On 1 June 2011, the Cabinet of Ministers of Ukraine adopted the Resolution which approved new rules for issuing visas authorizing entry into Ukraine and transit through its territory and introduced amendments to existing regulations. The new Visa Regulations will take effect on 11 September 2011. The new Visa Regulations substantively differ from those that are currently in effect. Some of the important changes are: other visa types, grounds for visa denial, new tariffs and new categories of foreigners entitled to receive temporary residence permits. Read it in English or in Ukrainian

    5 July 2011
    The Cabinet of Ministers of Ukraine Approves Regulations on Registry of Personal Databases

    On 21 June 2011, the Cabinet of Ministers of Ukraine Resolution No. 616 "On Approving the Regulations on the State Registry of Personal Databases and the Procedure for Maintaining Same" that was elaborated pursuant to Art. 9 of the Law of Ukraine "On Personal Data Protection", took effect. According to the Regulations, the State Registry of Personal Databases ("the Registry") is a unified State information system intended for collection, storage and processing of information about the registered personal databases. Its operation is planned to start on 1 July 2011.

    15 June 2011
    The New Law on Combating Corruption

    On 7 April 2011 the President of Ukraine signed the Law "On Fundamentals of Prevention of and Combating Corruption in Ukraine" (the "Law"). The Law is to take effect on 1 July 2011, except for Article 11 ("Special control over individuals applying for positions connected with performing functions within the State or local self-government authorities") and Article 12 ("Financial Control") that will take effect on 1 January 2012.

    13 June 2011
    INCOTERMS-2010

    On 26 May 2011, Presidential Decree No. 589/2011 took effect, which abolished two earlier Presidential Decrees (Decree No. 567/94 dated 4 October 1994 and Decree No. 505/95 dated 1 July 1995) establishing that Ukrainian business entities entering into contracts governed by Ukrainian law had to apply Incoterms (international unification rules for various basis of delivery terms that are widely used in international commerce) and provided for publishing of such rules in the "Uriadovyi Kuryer" newspaper.

    3 June 2011
    Adoption of the National Program for the Development of Minerals - Raw Materials Base in Ukraine for the Period until 2030

    On 20 May 2011 the President of Ukraine signed the Law "On Amending the Law of Ukraine "On Approving a National Program for the Development of Minerals - Raw Materials Base in Ukraine for the Period until 2010", which restates the old law in a new version and contains the National Program for Development of the Minerals - Raw Materials Base in Ukraine until 2030. The Program took effect on 25 May 2011.

    3 June 2011
    Report on American Chamber of Commerce in Ukraine's Knowledge Seminar "Prospects for Unconventional Gas Extraction in Ukraine: Environmental and Technological Aspects"

    On 20 May 2011, RULG attorneys attended the Seminar organized by American Chamber of Commerce in Ukraine, which was dedicated to the prospects for unconventional gas extraction in Ukraine. The seminar was organized with support from Mr. V.Tikhonov, Vice Prime Minister of Ukraine, the Ministry of Regional Development, Construction and Municipal Economy of Ukraine and the Ministry of Fuel and Coal Industry of Ukraine.

    27 May 2011
    Update on Personal Data Protection Regime in Ukraine

    As we informed in our Legal Alert dated 19 November 2010, the Law On Personal Data Protection took effect 1 January 2011 introducing requirements for gathering, processing, storing, and transferring of a personal data. Effective 6 April 2011, State Service of Ukraine on Personal Data Protection has been established by the Decree N 390/2011 of the President of Ukraine.

    26 May 2011
    Overview of the Deregulation Measures

    The Government of Ukraine – the Verkhovna Rada and the Cabinet of Ministers – have recently developed and enacted a number of long-awaited measures in the sphere of deregulation of business activity and improvement of the regulatory regime (customs, public procurement). These are developments facilitating the incorporation of legal entities in Ukraine (e.g. registration of legal entities based on a model charter, cancellation of special permits for corporate seals, abolishing minimal Authorized capital requirements for Limited Liability Companies), reducing requirements to documents to be filed with the state registration authorities, reducing number of licensed activities, introducing of electronic customs declarations. A number of other deregulation procedures in development are also described in the Legal Alert.

    26 May 2011
    Current Ukrainian Tax Rates

    25 March 2011
    Changes in Ukrainian Antitrust Legislation Electronic Filing System Introduced for Submitting Merger Clearance and Concerted Actions Applications

    In 2011 the Antimonopoly Committee of Ukraine ("AMCU") changed the procedure for submitting applications for merger clearance and concerted actions by introducing a compulsory electronic filing system.

    4 February 2011
    The Documents Certifying the Ownership Structure of Founders of Newly Incorporated Company in Ukraine

    As we informed in our Legal Alert dated 21 August 2010, during the initial incorporation of a company, if the Founders are non-resident legal entities it is now required for them to disclose their ownership structure to the extent of beneficial owners (individuals with substantial shareholding). Such Founders must also file with the State Registrar the documents certifying the ownership structure.

    29 December 2010
    Changes in the Ukrainian land tax rates according to the new Tax Code of Ukraine.

    The Tax Code has increased by three times the tax rates for land plots located within populated areas and have not undergone rental income appraisal.

    27 December 2010
    Verkhovna Rada approves new Anti-Corruption Bill at first reading.

    On 23 December 2010, the Verkhovna Rada approved in first reading an entirely new anti-corruption bill, "On Fundamentals of Prevention of and Combating Corruption in Ukraine" submitted by the President on 17 December 2010. The Bill was drafted by the National Anti-Corruption Committee with the active support of the Ministry of Justice of Ukraine. It is expected that the Bill will be adopted in the middle of January 2011.

    7 December 2010
    Overview of the New Tax Code

    The new Ukrainian Tax Code was signed by the President and then published on 4 December 2010. Most of its provisions will come into force on 1 January 2011, with certain provisions to be enacted at other specific dates specified in the Code.

    23 November 2010
    New Law "On Amendments to the Law of Ukraine "On the State Registration of Legal Entities and Individuals – Entrepreneurs" Concerning Electronic Registration"

    19 November 2010
    New Personal Data Protection Regime to Take Effect in Ukraine

    Effective 1 January 2011, new Law On Personal Data Protection takes effect confluent with the Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data (Strasbourg) dated 28 January 1981 and the Additional Protocol to the Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data, regarding supervisory authorities and transborder data flows (Strasbourg) dated 8 November 2001, both of which have been ratified in Ukraine.

    19 November 2010
    New Rules Applicable to Use of "Ukraine" as a Trademark Element

    New Rules came into effect on November 5, 2010, governing use of the official state name of the State - "Ukraine" - as a trademark element.

    21 August 2010
    Registration of Legal Entities in Ukraine Becomes More Burdensome

    June 2010
    The most significant recent changes as well as proposed changes to Ukrainian laws affecting business and investment environment.

    23 December 2009
    Foreign Individuals' Taxation and Their Registration as Ukrainian Tax Residents

    On 18 December 2009, the Ukrainian Tax Administration cancelled its 2004 clarifications regarding foreign individuals' taxation and their registration as Ukrainian tax residents and issued new clarifications on 23 December 2009. The new clarifications elaborate on current practices in applying the legislation regarding non-residents' tax payments and their registration as Ukrainian tax residents.

    25 November 2009
    Major Legislative Changes in Investment, Currency and Banking Regimes

    New Law "On Amending Certain Laws of Ukraine with the Purpose of
    Overcoming Negative Impacts of the Financial Crisis" seriously affects investment and currency regime in Ukraine.

© 2009 RULG - Ukrainian Legal Group, P.A.