Russian-Ukrainian Legal Group, P.A.

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

 

 

Chronicle of Recent Developments in Ukrainian Legislation

 

 
NOVEMBER 2005

 

Banking

Corporate Registration

Currency Control

Customs

Investments

Non-banking Financial Services

Oil and Gas

Taxes

Telecommunications

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

 

Banking

 

1) National Bank of Ukraine (“National Bank”) Letter No. 13-126/5574-10080 “On Implementation of Resolution of the Board of the Na­tion­al Bank No. 291 dated 12 August 2005” dated 7 November 2005. The National Bank clarifies which types of credit do not fall under the requirements of Resolution No. 291. As a reminder, Re­so­lution No. 291 introduced the requirements for holding mandatory reserves on credits that residents take from non-residents (for additional information on Resolution No. 291, please see the August 2005 edition of this Chronicle.)

 

Corporate Registration

 

2) State Committee of Ukraine for Regulatory Policy and Entrepreneurship ("Entrepreneurship Committee") Order No. 93 "On Approving Amendments to the Requirements for Spelling the Name of a Legal Entity or its Separate Subdivision” dated 17 October 2005. Among other things, Order No. 93 permits using additional separating characters and symbols when spelling the name of a legal entity. Previously, only apostrophes (‘), hyphens (-), dashes (–) and the symbol “N” were allowed to be used.  

 

Currency Control

 

3) National Bank Resolution No. 396 "On International Postal Money Transfers” dated 27 October 2005. The Resolution approves the rules for carrying out currency operations when individuals (re­si­dents and non-resi­dents) make international postal money transfers under instructions of individuals (re­si­dents and non-resi­dents), as well as for payments to such individuals in Ukraine of postal money transfers from abroad. The Resolution confirms that the rules do not apply to transfers that are re­lated to entrepreneurial and investment activities. The Resolution took effect on 22 November 2005.

 

Customs

 

4) State Customs Service of Ukraine (“Customs Service”) Order No. 1088 “On Approval of the Procedure for Making a Preliminary Decision on the Country of Origin of a Commodity and on Introduction of Amendments to State Customs Service of Ukraine Order No. 864 dated 28 December 1999” dated 8 November 2005. The Order explains how a preliminary decision on the country of origin of a commodity is made in response to an applicant's written request for such a decision. This decision is made in response to a written claim of the applicant, filed within the deadline set by the Procedure in question. The decision remains effective for three years after it is issued. An applicant for customs clearance of commodities must provide an original copy of such a decision when seeking clearance. The Decree has not yet been published but will take effect 10 days after its official publication. 

 

Investments

 

5) Presidential Decree No. 1648/2005 “On the Decision of the Council of National Security and Defense of Ukraine dated 29 June 2005 'On Measures to Improve the Investment Climate in Ukraine' dated 24 November 2005, and the Decree “On Measures to Secure Guarantees and to Increase the Efficiency of Property Rights Protection in Ukraine" dated 28 October 2005. Securing guarantees and efficient protection of property rights in Ukraine are defined as the major objectives of State policy. A National Council and State Investment and Innovations Agency will be established in order to improve the investment climate in Ukraine. The Decree gives a number of commissions to the central executive bodies and approves “The Plan of Measures to Improve the Investment Climate in Ukraine” and “The Major Objectives for Development of the Stock Market in Ukraine in 2005 – 2010”. The Decree has not yet been published but will take effect 10 days after its official publication. 

 

Oil and Gas

 

6) Law of Ukraine No. 3050-IV “On Introduction of Amendments to the Law of Ukraine 'On the State budget of Ukraine for the Year 2005'” dated 3 November 2005. Natural gas import operations in compliance with foreign economic contracts concluded pursuant to Ukraine's international treaties were made VAT-exempt in 2005. All natural gas import operations in Ukraine had been VAT-exempt. The Law took effect on 22 November 2005.

 

Non-banking Financial Services

 

7) State Commission for Regulation of the Financial Services Markets of Ukraine (“Commission”) Order No. 4801 “On Approval of Amendments and Additions to the Provision for Filing Information on Financial Companies in the State Register of Financial Institutions and on Establishment of Requirements for the Accounting and Registration System for Financial Companies” dated 18 October 2005. The Order increases the minimum "own capital" requirement for a financial company that plans to provide services utilizing individuals' deposits, as well as for financial companies that plan to establish their own separate subdivisions. The Order lists the documents that a financial company must submit in order to enter information on their separate subdivisions into the State Register of Financial Institutions of Ukraine. The Commission obliges financial companies to bring their activities into compliance with the established requirements within three months after enactment of the Order in question. The Order took effect on 25 November 2005.

 

Taxes

 

8) State Tax Administration of Ukraine ("Tax Administration") Order No. 493 dated 8 November 2005 "On Approving the Instructions on the Procedure for Impounding Originals and Copies of Financial and Economic Accounting Documents by Tax Administration Officials”. The Instruction regulates the relations between the tax authorities and taxpayers in the process of tax officials inspecting and impounding documents that evidence the concealment (understatement) of objects of taxation, non-payment of taxes and other payments. The Instruction gives taxpayers and other persons present the right to make statements on the tax officials' actions with which they disagree and to countersign the inventory of documents impounded. The Instruction contains a standard form for the inventory. The Order took effect on 6 December 2005.

 

Telecommunications

 

9) Cabinet of Ministers of Ukraine Resolution No. 1104 “On Matters of Allocation of Radio Frequencies of Ukraine” dated 22 November 2005. The Resolution addresses 3G radio technology – radio technology for digital mobile wireless communications of the IMT-2000 CDMA (UMTS/WCDMA) standard. The Resolution took effect on 22 November 2005.

 

Specific Sectors of Economy/Miscellaneous

 

10) Law of Ukraine No. 3028-IV "On Introduction of Amendments to the Law of Ukraine 'On Application of Special Measures for Import into Ukraine' with Respect to Procedural Issues of Special Investigation and Implementation of Special Measures” dated 1 November 2005. The Law introduces amendments related to conducting special investigations of increased imports into Ukraine that significantly damage Ukrainian producers. On amendment is that the list of "interested parties" in a special investigation has been expanded to now include suppliers and associations of consumers. The duration that a special investigation can continue has also been extended. The Law took effect on 25 November 2005.