Russian-Ukrainian Legal Group, P.A.

Kiev, Ukraine; Washington, D.C., USA

 

 

Chronicle of Recent Developments in Ukrainian Legislation

 

 
JUNE - JULY  2006

 

Customs

Oil and Gas

Financial Services

Securities

Specific Sectors of 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

 

Customs

 

1)        State Customs Service (“Customs Service”) of Ukraine Order No. 514 “On Approving the Procedure for Filing Documents Evidencing Entrepreneurs’ Right to Tax Privileges, Established by Law, During Customs Clearance of Goods Imported into or Exported out of the Customs Territory of Ukraine” dated 22 June 2006. The approved Procedure replaces a 1999 Procedure of the same name. The Order will take effect on 9 September 2006.

 

2)        Customs Service Order No. 551 “On Approving the Procedure for Filing and Using the Customs Service Preliminary Notification of Intention to Import Goods into the Customs Territory of Ukraine and On Amending State Customs Service of Ukraine Order dated 12 December 2005 No. 1220” dated 3 July 2006. Notification of an intention to import goods into Ukraine must be executed for each separate lot of goods imported. Such notification remains valid for three months after its receipt by Customs. After three months, clearance of goods under such notification is forbidden.  The Order will take effect on 9 September 2006.

 

Oil and Gas

 

3)        Cabinet of Ministers of Ukraine (“Cabinet of Ministers) Resolution No. 859 “On Amending Clause 3 of the Procedure for Calculating and Paying to the State Budget the Rent for Transportation of Oil and Oil Products through Oil and Product Pipelines, and for Transit Transportation of Natural Gas and Ammonia through Pipelines in the Territory of Ukraine” dated 24 June 2006. According to the amendment introduced to the Procedure, the rent for transportation of oil and oil products shall be calculated by the payer as the product of the rent amount, established by the Law on the State Budget, and the volume of the transported oil or oil products, and for transit transportation of natural gas and ammonia – as the product of the rent, the volume of natural gas or ammonia, and the length of the transportation route. The Resolution took effect on 24 June 2006.

 

Financial Services

 

4)        State Committee on Financial Monitoring of Ukraine (“Financial Monitoring Committee”) Order No. 84 “On Approving the Procedure for Notifying Subjects of Primary Financial Monitoring of the List of Persons Connected with Terrorist Activity” dated 26 April 2006. Pursuant to the approved Procedure, the list of persons connected with terrorist activity or amendments thereto shall be posted on the Financial Monitoring Committee's official website within three days after receiving the corresponding information; subjects of primary financial monitoring shall be notified by e-mail about persons included in the list.  The Order took effect on 1 July 2006. 

 

Securities

 

 5)       Cabinet of Ministers Resolution No. 802 “On Establishing the Validity of Licenses for Performing Certain Types of Activity on the Securities Market and Agreeing on Amounts of Fees for their Issuance” dated 7 June 2006. Depending on the type of activity, a license can be issued for either five or 10 years. The Resolution also approved Decision No. 329, which is discussed below in clause 6 of this Chronicle. The Resolution took effect on 7 June 2006.

 

6)        State Committee of Ukraine for Securities and Capital Markets  (“Securities Committee”) Decision No. 329 ”On Establishing the Amount of the Fee for Issuing Licenses for Certain Types of Activity on the Securities Market” dated 12 May 2006. The fee for issuing licenses for performing activity on the securities market depends on the type of activity and is established in amounts ranging from 1700 UAH to 10,000 UAH. The Decision took effect on 3 July 2006.

 

7)        Securities Committee Decision No. 234 “On Establishing Regulations on the Procedure for Registering the Issuance of Straight Mortgage Bonds, Offering Circulars, Reporting on the Results of Mortgage Bonds Issuance, and Redeeming and Canceling Registration of Mortgage Bonds Issuance” dated 11 April 2006. According to the approved Regulation, an issuer shall be entitled to issue mortgage bonds after such issuance has been registered with the Securities Committee.  For this purpose it is necessary to file an application and a package of documents, defined by the Regulation. Registration shall be effected within 30 calendar days. The Decision took effect on 7 July 2006.

 

8)        Securities Committee Decision No. 324 “On Disclosing Information about a General Meeting in the General Notice of the Stock Company” dated 26 May 2006. Pursuant to the Decision, if the agenda of a general meeting of shareholders includes approving annual results of activity, then it is necessary to publish information about the company's basic indexes of financial and business activity. The recommended form for such notices is included in the Decision. The Decision took effect on 24 June 2006.

 

9)        Securities Committee Decision No. 381 “On Invalidating Decision No. 138 of the State Committee of Ukraine for Securities and Capital Markets dated 20 April 2001 'On Approving Regulations on Recording Non-Residents’ Ownership Rights to Securities of Ukrainian Issuers'” dated 14 June 2006. The Regulations have been voided. The Regulations previously set requirements for the procedure for recording non-residents’ ownership rights to securities of Ukrainian issuers, which have been serviced in the National Depositary System on the basis of a decision by the Securities Committee. The Decision took effect on 8 July 2006.

 

10)      State Committee of Ukraine for Regulatory Policy and Entrepreneurship (“Entrepreneurship Committee”) Order No. 56 “On Recognizing State Committee of Ukraine for Regulatory Policy and Entrepreneurship Orders Concerning Licensing Conditions for Professional Activity on the Securities Market Void”; Securities Committee Decision No. 433 “On Recognizing State Committee of Ukraine for Securities and Capital Market Decisions Concerning Licensing Conditions of Professional Activity on the Securities Market Void” dated 23 June 2006. The licensing conditions for performing professional activity on the securities market, approved by a joint document authored by the Entrepreneurship Committee and the Securities Committee, are now void. The authorized state bodies are working on preparing new Licensing conditions. The approved Order and Decision took effect on 18 July 2006.

 

11)      Securities Committee Decision No. 444 “On Approving the Procedure for Running the State Register of Authorized Rating Agencies and Issuing Certificates of Entry into the State Register of Authorized Rating Agencies” dated 26 June 2006. Pursuant to the approved Procedure, a rating agency is a legal entity that provides professional services on the securities market and that specializes in assigning credit ratings as well as providing research and information services connected with the implementation of the above-said activity. A rating agency receives the right to assign ratings, the necessity of which is defined by law, after receiving a Certificate on Entry into the State Register of Authorized Rating Agencies. The Decision took effect on 23 July 2006.

 

Specific Sectors of Economy/Miscellaneous

 

12)      Cabinet of Ministers Resolution No. 908 “On Approving the Procedure for State Registration (Re-registration) of Disinfectants” dated 3 July 2006. The new Procedure will take effect on 1 September 2006 and replace the 2003 Procedure of the same name. As was the case previously, the state registration of disinfectants will be performed by the Ministry of Health in accordance with the results of state sanitary and epidemiological expert examinations. Said expert examinations shall henceforth be conducted by duly accredited institutions, authorized by the Chief Health Inspector of Ukraine. Expert examinations shall be conducted within 30 calendar days after an institution receives the documents required by the Procedure.  The Resolution will take effect on 1 September 2006.

 

13)      Ministry of Health of Ukraine Order No. 256 “On Approving Hygienic Regulations on 'Allowable Level of the Radionuclides 137Cs and 90Sr in Foodstuffs and Drinking Water'” dated 3 May 2006. The approved Regulations, in addition to setting allowable levels of radionuclides, also require compliance with these levels in the process of manufacturing, importing, exporting and circulating foodstuffs. These Regulations are mandatory for both individuals and legal entities whose activities are connected either with the above-stated activity or with providing services in the spheres of retail and wholesale foodstuffs, in the restaurant industry and in public catering. The Order took effect on 23 July 2006.

                                   

14)      Ministry of Industrial Policy of Ukraine Order No. 194 “On Approving the Procedure for Competitive Selection of Innovation Projects in the Industrial Sphere” dated 30 May 2006. The approved Procedure controls the selection of "innovation projects" for financing by the Ukrainian State Innovation Company. A notice on the competition conditions for such financing, and on the dates, times and places for holding such competitions, must be published in the print media or on the official website of the Ministry of Industrial Policy of Ukraine. In order to take part in such a competition, it is necessary to file with the Ukrainian State Innovation Company an application of the established form, together with the packet of documents described by the Procedure. The Order took effect on 3 July 2006.