Russian-Ukrainian Legal Group, P.A.
Chronicle
of Recent Developments in Ukrainian Legislation
januaRy 2005
Banking Criminal Law Intellectual Property Investment Land Oil and Gas Privatization Tax Treaties Specific Sectors of the Economy/Miscellaneous |
The “Chronicle of Recent Developments in Ukrainian
Legislation” is a monthly summary of the most important legislative
developments in
Banking
1) National Bank of Ukraine ("National Bank")
Resolution No. 639 "On Approving the Regulations on the Procedure for
Carrying Out Banks' Operations under Guarantees in the National and Foreign
Currencies" dated 15 December 2004. The types of guarantee permitted
by the regulations include: payment guarantee, repayment of advance, tender
guarantee (guarantee securing an offer), performance guarantee, loan repayment
guarantee, etc. In order to receive a guarantee, it is necessary to file with a
guarantor bank a guarantee statement accompanied by the documents indicated in
the Regulations. Upon approval of the bank's draft of the guarantee and its
signing by the principal, the guarantor bank will send a notice indicating the
terms and conditions of the guarantee in accordance with the contact details
indicated in the statement. If a bank issues a guarantee on the basis of
documents which do not stipulate delivery of goods to Ukraine, the foreign
currency securing such a guarantee or the foreign currency used for payment
thereunder (upon occurrence of a guaranteed event) cannot be purchased on the
inter-bank currency market of Ukraine. The Resolution took effect on
2) National Bank Resolution No. 6 "On Recognizing Some
Resolutions of the Board of the National Bank of
Criminal Law
3) Law of Ukraine No. 2252-IV "On Amending Some
Legislative Acts of Ukraine Concerning Liability for the Illegal Collection,
with the Aim of Using or for the Use, of Data Constituting Bank Secrets, and
for Disclosure of Bank Secrets" dated 16 December 2004. Administrative
liability for the illegal disclosure or use of information constituting a bank
secret has been cancelled. Said acts are now treated as crimes and result in
criminal liability. The procedure for seizing documents that contain State
secrets and/or that constitute bank secrets has been made more difficult; such
documents can now be seized only on the basis of a substantiated decree from a
judge; a sanction imposed by a public prosecutor or deputy prosecutor no longer
suffices. The Law took effect on
4) Law of
Intellectual Property
5) Ministry of Education and Science of Ukraine Decision No.
13/2-16 "On Improving the National Legislation in the Sphere of
Intellectual Property and the Measures Concerning Implementation of the
Principal Tasks of the State Department in 2005" dated 23 December 2004.
Some of the approved actions of the State Department of Intellectual Property
in 2005 are: (1) expert support for the bill "On Protection of Rights to
Trademarks, Geographical Designations and Brand Names" and "On the
Specifics of the Government Regulation of the Activity of Subjects of Economic
Activity Associated with the Manufacture, Export, and Import of Laser-Readable
Discs"; (2) participation in the drafting of a joint Order "On
Approving the Procedure for Supervising Observance of the Licensing Conditions
for Carrying Out Economic Activity Associated with the Manufacture of
Laser-Readable Discs"; (3) improvement of the system by way of which
manufacturers and importers of equipment and raw materials used for the
production of phonograms and(or) videograms pay royalties to the appropriate
copyright and (or) neighboring rights holders. The Decision took effect on
Investment
6) Ministry of Justice of
7) National Bank Letter No. 13-123/650-1224 "On the
Procedure for Making Monetary Foreign Investments into Ukraine and Returning to
a Foreign Investor Its Investments, as Well as Repatriating the Profit, Income,
and Other Means Derived from Investment Activity in Ukraine" dated 10
February 2005. In connection with the suspension of Resolution No. 482, the
National Bank informs that: (1) transfers of foreign investments to Ukraine and
further into objects of investment and returns to investors of their foreign
investments and the income derived from investment activity in Ukraine can only
be carried out through accounts of the non-resident investors opened in banks
of Ukraine; (2) contributions into the authorized funds of Ukrainian companies
(except for open joint-stock companies) can be made by non-residents in foreign
currencies; (3) non-residents can acquire Ukrainian securities issued for free
circulation in Hryvnias only. Today, Ukrainian banks have different opinions
concerning whether it is necessary to open checking accounts for non-resident
investors for the formation of companies' authorized funds. Some banks
recommend opening such checking accounts and subsequently remitting the funds
deposited therein to an account, which will be used for the formation of the
authorized fund. Other banks intend to open authorized fund accounts in
compliance with the procedure that had been effective before Resolution No. 482
was adopted (i.e., foreign currency investments being placed in an authorized
fund account without opening a checking account for the relevant non-resident
investor).
Land
8) State Committee of
Ukraine for Land Resources ("Land Resources Committee") Order No. 1 "On Approving the Procedure
for Issuing and Canceling Special Permits Authorizing the Removal and Transfer
of Soils (Fertile Soil Layers) from Land Plots" dated 4 January 2005.
Under Ukrainian law, owners of land plots and land users ("land
users") who/which perform mining, exploration, construction and other
works must obtain a permit authorizing the removal and transfer of the land
plots' soils if such removal and transfer would upset the top (fertile) soil
layer. The steps for issuing and canceling these permits are set forth in the
approved Procedure. A land user's application for a permit and the materials
attached thereto must be considered by the respective body of the Land
Resources Committee within 30 calendar days after the date of their receipt.
This term can be extended with the applicant's written approval, but the
extension cannot exceed 10 calendar days. The permit's period of validity is
established in accordance with the terms of the works intended for the land and
indicated in the relevant land management project. The Order took effect on
Oil and Gas
9) Cabinet of Ministers of Ukraine ("Cabinet
of Ministers") Resolution No. 46 "On Amending the Regulations on
the Procedure for Calculating and Paying to the State Budget the Rent for
Transportation of Oil by Oil Trunk Pipelines and for Transit Transportation by
Pipelines of Ammonia, Natural Gas Through the Territory of Ukraine" dated
15 January 2005. The Resolution stipulates increased rates for the rent
collected for the transportation of oil by oil trunk pipelines and for the
transit transportation of ammonia (please see the December 2004 issue of this
Chronicle). The Resolution also defines more exactly the rules for accounting
for and paying the rent. It stipulates, in particular, that the rent must now
be paid within 30 calendar days after the last calendar day of the accounting
(tax) month, rather than before the 25th day of the month that
follows the accounting month, as had been previously established. The
Resolution took effect on
10) Cabinet of Ministers Resolution No. 59 "On Amending the
Procedure for Calculating and Paying to the State Budget of Ukraine the Rent
for Oil, Natural and Condensed Gas" dated 19 January 2005. The
Resolution restates the procedure for calculating and paying to the State
budget the rent for oil, natural gas and condensed gas. The rent is levied on
the amount of extracted hydrocarbons, except for natural and condensed gas
extracted from marine deposits and deposits that are fully located at depths of
more than 5000 meters. Tax calculations of the rent must be made in accordance
with a yet-to-be-issued State Tax Administration form, and until this form is
issued, in accordance with the tax calculation forms indicated in the
Procedure. The rent must be paid to the State budget as advance installments
before the 10th, 20th and 30th days of the
current calendar month. Full rent amounts must be paid by payers to the State
budget at the payers' places of tax registration within 30 calendar days after
the end of the month that follows the last calendar day of the accounting
month. The Resolution took effect on
11) Ministry of Fuel and Power Industry of Ukraine ("Fuel
Ministry") Order No. 604 "On Approving a List of Standard
Losses, Production and Technological Consumption Rates for Oil, Natural and
Condensed Gas During Their Production, Preparation for Transportation and
Transportation, and the Procedure for Determining the Amounts Thereof"
dated 30 September 2004. Under the effective legislation, objects of
taxation do not include actual losses, production and technological consumption
rates for oil, natural and condensed gas during their production, preparation
for transportation and transportation, as long as these do not exceed the
standard losses, production and technological consumption rates. Cabinet of
Ministers Ordinance No. 572-r (please see the August 2004 issue of this
Chronicle) approved the list of and the procedure for determining the above
standard losses, production and technological consumption rates for oil,
natural and condensed gas. Order No. 604 took effect on
Privatization
12) Law of
Tax Treaties
13) State Tax Administration of
Specific Sectors of the
Economy/Miscellaneous
14) Ministry of Labor and Social Policy of