Russian-Ukrainian Legal Group, P.A.

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

 

 

Chronicle of Recent Developments in Ukrainian Legislation

 

 
october 2005

 

Accession to the World Trade Organization

Advertising

Banking

Corporate Registration

Intellectual Property

Oil and Gas

Telecommunications

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

 


Accession to the World Trade Organization

 

1)        Law of Ukraine No. 2809-IV "On Incorporating Amendments into the Law of Ukraine 'On Quality and Safety of Food Products and Food Raw Materials' dated 6 September 2005". This is one of the laws that needed to be adopted as a precondition of Ukraine's accession to the WTO (please see August 2005 issue of this Chronicle). The Law harmonizes the provisions of the Law of Ukraine "On Quality and Safety of Food Products and Food Raw Materials" with the provisions of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures. The Ukrainian Law is now titled "On the Safety and Quality of Food Products" and contains new definitions and sections. In particular, a new section on "International Trade" stipulates requirements for exported/imported foodstuff cargoes; the procedure for issuing international sanitary certificates; border control procedures, etc. The Law took effect on 26 October 2005.

 

Advertising

 

2)        State Motor Road Service of Ukraine Order No. 414 "On Approving a Procedure for Issuing Permits Authorizing Placement, Construction, Reconstruction and Operation of Service Facilities on the Lands of Road Facilities, Approvals and Coordinations with Respect to External Advertising Along General-Purpose Motor Roads" dated 29 September 2005. The Order stipulates basic requirements for the placement and equipment of service facilities (including driveways) and external advertising located fully or in part on road facilities land or adjacent lands along general-purpose motor roads. It requires that, when developing designs for the construction, reconstruction and equipment of service facilities, as well as when placing advertising, entrepreneurs must obtain technical specifications concerning the observance of traffic safety requirements from the relevant authorities. The Order took effect on 6 November 2005.

 

Banking

 

3)        National Bank of Ukraine Resolution No. 373 "On Approving the Amendments to the Regulations on the Procedure for Issuing to Banks Bank Licenses, Written Permits and Licenses Authorizing Certain Operations" dated 12 October 2005. Requirements for the level of regulative capital (internal funds) that a bank must possess to obtain National Bank licenses to carry out certain banking operations have been increased. Banks that already possess licenses must bring their regulative capital into compliance with the new requirements before 31 December 2006. The Resolution took effect on 8 November 2005.

 

Corporate Registration

 

4)        State Committee of Ukraine for Regulatory Policy and Entrepreneurship ("Entrepreneurship Committee") Order No. 97 "On Approving Certain Regulations Concerning the Release of Information Contained in the Uniform State Register of Legal Entities and Individual Entrepreneurs" dated 20 October 2005. The Order approves the Regulations that prescribe the procedure for issuing references from the Uniform State Register of Legal Entities and Individual Entrepreneurs concerning reservation of legal entities' names. A legal entity's participants are authorized to reserve its name for two months (nine months for open joint-stock companies) by filing an application with the relevant authorities. The reservation of a legal entity's name is certified by a reservation reference, the standard form of which has also been approved by this Order. The Order took effect on 8 November 2005.

 

Intellectual Property

 

5)        Ministry of Education and Science of Ukraine ("Ministry of Education") Order No. 514 "On Incorporating Amendments and Addenda into the Procedure for Imposing Financial Sanctions on Subjects of Economic Activity for Violations of the Law of Ukraine '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'" dated 6 September 2005. The Procedure now applies to matrices as well. The Order stipulates businesses' liability for exporting or importing laser-readable discs, matrices, equipment and raw materials without a license: a fine set at 200 percent of the cost of the imported/exported products, but not less than 3000 minimum tax-free incomes ("mtfi"). At present, 3000 mtfi = 51,000 UAH or approximately 10,100 USD. The Order took effect on 21 October 2005.

 

6)        Entrepreneurship Committee/Ministry of Education Order No. 77/515 "On Incorporating Amendments and Addenda into the Licensing Conditions for Activities in the Manufacture of Laser-Readable Discs" dated 6 September 2005. The Licensing Conditions have been amended with the aim of bringing them into line with the provisions of Law No. 2734-IV adopted in July of 2005 (along with other acts required for Ukraine's accession to WTO -- please see the August 2005 issue of this Chronicle). In particular, the Licensing Conditions now apply to the manufacture of matrices. The Order took effect on 21 October 2005.

 

Oil and Gas

 

7)        Entrepreneurship Committee Orders Nos. 86, 87, 88 and 89 and National Commission of Ukraine for Regulation of the Electric Power Industry Resolutions Nos. 856, 857, 858 and 859 "On Approving the Licensing Conditions for Activities in the Transportation of Natural and Oil Gas by Trunk Pipelines" dated 30 September 2005. The joint regulations approve new Licensing Conditions for activities in the transportation of natural and oil gas and oil and oil products by the trunk pipelines, as well as for distribution of natural and oil gas. Entrepreneurs that operate under licenses must bring their activities into line with the requirements of the new Licensing Conditions within three months after the Resolutions take effect. These Orders and Resolutions took effect on 1 November 2005.

 

Telecommunications

 

8)        National Commission of Ukraine for Regulation of Communications Order No. 53 "On Approving the Licensing Conditions for Using the Radio-Frequency Resources of Ukraine" dated 19 August 2005. Resident businesses that use or intend to use Ukrainian radio-frequency resources to render telecommunications services must obtain licenses for the relevant activities in compliance with the established procedures. They must also meet certain qualifications and organizational requirements, an exhaustive list of which is contained in the approved Licensing Conditions. The Licensing Conditions stipulate issuance of three types of licenses: national, regional and territorial. Each type of license authorizes the use of a Ukrainian radio-frequency resource in the fixed number of regions of Ukraine. The Order took effect on 31 October 2005.

 

Specific Sectors of Economy/Miscellaneous

 

9)        Law of Ukraine No. 2899-IV "On Measures to Prevent and Reduce the Consumption of Tobacco Products and the Harmful Effects Thereof on Human Health" dated 22 September 2005. The Law prohibits smoking at work and in public places, except for places specially designated for this purpose. Owners and tenants of buildings and premises must designate specially equipped smoking areas. Effective 1 July 2006, owners of public places will have to allocate at least 50% of the area of such places for the use of non-smokers. The Law took effect on 25 October 2005.