News (#11 November 2017)

Law digest

StateGeoCadastre started working on Blockchain

Resolution No.688 of the Cabinet of Ministers of  21 June 2017 provides for the transition of the StateGeoCadastre to Blockchain technology. The introduction of this technology will ensure reliable synchronization of data, which cannot be replaced as a result of outside interference. Moreover, Blockchain technology will
enable public control over the system.

The land cadastre became the second project in the public sector in which Blockchain technology was applied. In early September, this technology was introduced into the electronic trading system.


New EU trade preferences for Ukraine

From 1 October  2017  the new trade preferences of the EU for Ukraine came into effect. From now on, the export of most types of agricultural products from Ukraine to the EU will be conducted without the application of customs duties.

Introduction of the new trade preferences in the near future will enable simplification of access to the European market for some industrial products too.

Trade restrictions have so far only been lifted on several types of agricultural products. The export of Ukrainian wheat, barley and corn to the EU without the payment of customs duties will become possible from 1 January 2018.


Law on cybersecurity adopted

The Ukrainian Parliament has approved the Draft Law On the Basics of Ensuring Cybersecurity of Ukraine in its second reading.

The main point of the Draft is to legalize terminology with the prefix “cyber” (-space, -attack, -crime, -terrorism, -intelligence, -spying, etc.). After adoption of the Draft Law, violations committed in virtual space (for example, illegal transfer or withdrawal of funds from someone else’s account, disruption of operation of the nuclear power plant or airport) will be regarded as cybercrime, like theft, terrorism, etc.

Within the limits of their powers, ministries, local state administrations, local self-government authorities, law-enforcement bodies, intelligence and counterintelligence, subjects of operative investigation activities are responsible for cybersecurity.

Moreover, ensuring the country’s cybersecurity is also entrusted to the Armed Forces, National Bank of Ukraine, enterprises related to critical infrastructure facilities, enterprises and citizens working in the field of national information resources, information electronic services.


Electronic trust services

Parliament has adopted the Draft Law On Electronic Trust Services, No.4685 submitted by the Cabinet of Ministers.

The range of such services includes business administration tools: electronic identification (BankID, MobilD), electronic signature, electronic seal, timestamp, electronic certified mail delivery, fake control of electronic resources. Government control over this sphere will be the responsibility of the Cabinet of Ministers, a special central body and the National Bank.

According to the adopted document, users of electronic trust services have the right to choose the provider of such services. They also have the right to apply to cancel, block or restore their public key certificate.

At the same time, users are required to ensure that third parties have no access to their key and to also immediately inform the person providing electronic services about any suspicion or fact of a personal key compromise. The law comes into force a year after its publication.


NBU specified investment requirements

The National Bank of Ukraine has specified conditions for making investments related to debt restructuring of bank debtors. From now on banks wishing to make such investments must adhere to the following requirements: the period of banking activities is at least three years; sum of the bank’s regulatory capital is at least UAH 200 million; the bank is not subject to enforcement actions (suspension or cessation of certain types of transactions).

These changes will help banks to conduct financial restructuring, reduce the volume of non-performing loans in the banking system and restore the economic activities of debtors.

The specified changes are introduced by the decision of the Board of the National Bank No.104 of 20 October. The document comes into force the next day after its official publication

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