Russian-Ukrainian Legal Group, P.A.
Kiev, Ukraine; Washington, DC, USA
Chronicle of Recent Developments in
Ukrainian Legislation
JULY 2003
Advertising Criminal Law Intellectual
Property International
Treaties Internet Labor Law Land Money
Laundering Mortgage Taxes 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 Ukraine in
the area of business and corporate law, and is prepared, published and
distributed by the Russian-Ukrainian Legal Group as a free service to our
clients. The Chronicle will be distributed only via e-mail, in English and
Russian, by the middle of each month, and will summarize the legislative developments
of the previous month. The Chronicle is prepared in an effort to capture news
of greatest interest to the widest cross-section of our firm’s clientele,
without restating all legislation published and drowning our readers in too
much information. Due to the winnowing process necessary when preparing the
Chronicle, we cannot and do not guarantee that it contains a comprehensive list
of all Ukrainian legislation relevant to your business. Finally, please bear in
mind that this summary does not constitute legal advice; it is an informational
service only. Should you wish to receive further information or actual legal
advice, please do not hesitate email us at chronicle@rulg.com.
Advertising
1) Law of Ukraine "On Amending the Law of Ukraine “On Advertising”.
Advertising of alcohol drinks and their trademarks on television and radio is prohibited, except at night. Advertising of tobacco products and their trademarks is prohibited on television and radio, on the first and last pages of printed materials and on public transportation. Tobacco trademarks cannot “act as sponsors” – although the exact meaning of this restriction is unclear. The Law also establishes additional (more rigorous) standards regarding the advertising of pharmaceuticals. The Law was adopted by Ukraine’s Supreme Rada on July 11 and sent to the President for signing.
2) Law of
Ukraine No. 908-IV dated 5 June 2003 "On Amending the Criminal Code of
Ukraine Regarding Responsibility for Wrongful Interference in the Activity
of Telecommunication Networks”. Section XVI of the Criminal Code, titled
"Crimes in the field of usage of electronic computers, systems and
computer networks" has been supplemented with a new offence termed
"wrongful interference in the activity of telecommunication networks,
resulting in destruction, distortion or blockage of information or violation of
the established order of its routing". The Law entered into force on 4 July 2003.
3) Order No. 75 of the State Committee of Ukraine on Regulatory Policy and
Entrepreneurship dated 7 July 2003 "On Fees for the Services of a Depositary of Laser-Readable Disc
Samples”. The State Committee of Ukraine on
Regulatory Policy and Entrepreneurship
shall compile and manage a Registry of
laser-readable disc samples. The Order
establishes a list of persons authorized to access the information from the
Registry. It is prohibited to transfer data from the Registry to third persons
in exchange for payment. The table of fees for the services of a Depositary
(i.e., a storehouse of laser-readable disc samples) is attached to the Order.
The Order is already in force.
4) Law of
Ukraine No. 1013-IV dated 19 June 2003 "Оn Ratification of the
Convention between the Cabinet of Ministers of Ukraine and the Government of
the United Arab Emirates on Avoiding Double Taxation
and Prevention of Tax Evasion regarding Taxes on Income and Capital". The
Law ratifies the corresponding Convention, signed on 22 January 2003 in the
city of Abu-Dhabi.
Internet
5) Cabinet
of Ministers of Ukraine (“CMU”)
Resolution No. 447-p dated 22 July 2003 “On Administration of the Domain
“.ua”. Service and administration of the system of domain
names “.ua” is assigned to the “Ukrainian Network Administration Center”
(a newly formed organization, composed in part by the Security Service of
Ukraine (commonly known by its Ukrainian initials "SBU"). The Resolution
is already in force.
Labor Law
6)
Law of Ukraine No. 1114-IV dated 10 July 2003 "On
Amending Article 17 of the Law of Ukraine “On Vacations”. Anyone (regardless
of sex) who adopts a newborn child from a maternity ward is entitled to a
56-calendar day vacation (70 calendar days if two or more children are
adopted). (Before this Law was passed, only women were entitled to this
vacation.) The Law is already in force.
Land
7) Law of Ukraine No. 1025-IV dated 9 July 2003 "On
Amending the Code of Ukraine “On Subsoil”. The amendments concern the production of
mineral water by children’s sanatorium and resort establishments. The Law
entered into force on 31 July 2003.
8) Law of Ukraine No. 1103-IV dated 10 July 2003 "On
Amending Article 82 of the Land Code of Ukraine”. Joint ventures,
formed with the participation of foreign individuals and legal entities, can
obtain property rights to non-agricultural land plots. The Law entered into
force on 31 July 2003.
9) Decree of the President of Ukraine No.
740/2003 of 22 July 2003 “On Development of the System of Counteractive
Measures against Legalization (Money Laundering) of Profits Obtained by
Criminal Means and Financing of Terrorism”. The Decree instructs the CMU to prepare bills
on the subject of money laundering; prepare a bill regarding a specially
authorized body dealing with issues related to financial monitoring conducted
by the executive branch; prepare a proposal to ratify the UN Convention against
Transnational Organized Crime of 2000; and create a Unified State Informational
Service in the field of prevention and counteraction of the legalization of
income obtained by criminal means and financing of terrorism. The Decree is
already in force.
10) CMU
Ordinance No. 419-p dated 17 July 2003 “On the List of Countries (Territories),
that do not Participate in the International
Cooperation in the Field of Prevention of Legalization (Money Laundering) of
Income Obtained by Criminal Means and Financing of Terrorism”. The
following countries are on the list: Guatemala, Egypt, Indonesia, Myanmar,
Nauru, Nigeria, the Cook Islands and the Philippines. The Resolution is already
in force.
11) Law of Ukraine No. 978-IV
dated 19 June 2003 “On Mechanisms for Loan Financing and Management of Property
Administration when Constructing Housing and Operating Real Estate”. The
Law lays out general principles and the legal basis for attracting funds from
individuals and legal entities for financing the construction of real estate
and conducting operations with real estate, as well as the specifics of
managing such assets. The Law will enter into force on 1 January 2004.
12) Law of
Ukraine No. 979-IV dated 19 June 2003 “On Mortgage Lending, Operations with
Consolidated Mortgage Debt and Mortgage Certificates”. The Law describes
the contents of mortgage notes, debt repayment procedures, inflationary
reservations and requirements for securing mortgage
obligations, and regulates the conditions for issuing and circulating
mortgage certificates, and for managing trust and mortgage assets. The Law will
enter into force on 1 January 2004.
13) Law of
Ukraine No. 980-IV dated 19 June 2003 “On Amending Certain Legislative Acts of
Ukraine”. The Law amends civil
procedural legislation and property legislation in response to the passage of
the two above-mentioned laws. The Law will enter into force on 1 January
2004.
14) Law of
Ukraine No. 899-IV dated 22 May 2003 “On the Individual Income Tax”. The President has signed this
Law (see the May edition of the Chronicle, in which we discussed its passage by
the Supreme Rada), establishing a flat 13% rate for the individual income tax
from 1 January 2004 to 31 December 2006. The rate will rise to 15% after 31
December 2006. The Law will
enter into force on 1 January 2004.
15) Law of
Ukraine No. 1115-IV dated 10 July 2003 “On Tours in Ukraine”. The
organizers of tours shall pay a fee for conducting tours at the rate of 3% of
the proceeds from ticket sales. The
Law will enter into force on 1 January 2004.
16) CMU Resolution No. 994 dated 27 June 2003 “On Approving the
List of Measures and Means for Labor Protection, the Costs of Performance and
Purchase of which are Included in their Gross Costs”. Provision of special food and drinks to employees
engaged in works with harmful labor conditions, performance of medical
examinations, certification of workstations regarding compliance with labor
protection standards and supplying of employees with special footwear, clothing
and means of individual protection are to be included into gross costs along
with other costs. The Resolution is already in force.
Specific Sectors of the Economy/Miscellaneous
17) Law of Ukraine No. 964-IV dated 19 June 2003 “On the Fundamentals of National Security”. Integration of Ukraine into the "Euro-Atlantic
space of security" (i.e., NATO) has been proclaimed a priority national
interest of Ukraine. This is the first Law of Ukraine that officially
recognizes NATO integration as a priority for Ukraine's development. The Law entered
into force on 22 July 2003.
18) Law of Ukraine No. 965-IV dated 19 June 2003 “On Amending
Certain Legislative Acts of Ukraine Related to Passing the Law of Ukraine
’On Combating Terrorism’". The
Law amends various Codes and Laws of Ukraine. Employees of the SBU are
authorized to petition a Court to cancel the registration of subjects of
entrepreneurial activity, to file a petition to void agreements, to enter the
territory of enterprises, to seal up premises, to seize the money of
individuals and legal entities and to obtain information regarding the
operation of bank accounts and bank statements. The Law entered into force on
22 July 2003.
19) Law of Ukraine No. 973-IV dated 19 June 2003 “On Farming".
Farming is defined as a form of
entrepreneurial activity that requires setting up a legal entity. Every citizen
of Ukraine above 18 years of age, who has legal capacity and who has passed a
professional examination, is entitled to create a farming business.
Newly-formed farming businesses, which are in the stage of formation, are
entitled to state assistance. The profits of newly-formed farming businesses
are tax-exempt for three years, and profits of farming businesses located in
hard-to-reach inhabited localities are tax-exempt for five years. The Law is
already in force.
20) CMU Resolution No. 1168 dated 28 June 2003 “On Amending CMU
Resolution No. 228 dated 20 February 1999”. The procedure for citizens of the EU, Canada, the USA, Turkey,
Switzerland and Japan to obtain tourist permits to enter Ukraine for a term of
up to 14 days has been simplified. Entry permits can be issued at the
international airports "Borispol", "Simferopol" and
"Odessa" and at the Odessa Trade Seaport against presentation of
documents confirming the tourist purpose of the trip. The Resolution is already
in force.