News (#05 May 2017)

Law Digest

Model form of anti-corruption program for public procurement participants

The National Agency for the Prevention of Corruption by its Decision No.75 approved the Model Anti-Corruption Program of a legal entity. In accordance with the Decision, certain legal entities must approve their anti-corruption programs based on the Model Program. In particular, such duty is established for any company (even completely private, including those belonging to foreign owners), which is a participant of public procurement procedures for amounts of UAH 20 million and more.

The program is mandatory for all employees of a company, its officers and founders, as well as for economic entities, which are under control of such a company.

 

Process to liquidate unprofitable mines improved

The Order of the Cabinet of Ministers No.266 of 12 April 2017 introduced changes to the Procedure for using funds provided in the state budget for the restructuring of coal and peat industries.

To finance the process of liquidating unprofitable mines it is no longer necessary to withdraw them from existing coal mining companies and to create new legal entities. Thus, the process of preparation for liquidation is being simplified and the costs for its implementation are reduced.

Moreover, a maximum period of mine preparation for liquidation is established, which should not exceed 2 years. At the same time, preparation includes: reduction in the number of employees; repayment of arrears in salaries and social benefits to compensate for harm caused to the health of employees arising out of their employment; payment for electricity consumed; development of the liquidation project and the conducting of a review by state experts.

Also, budgetary funds will be used to repay arrears in the unified social tax of the state enterprise Ukrshahthidrozakhyst and reimbursement of actual expenses for payment and delivery of pensions for past periods that arose in connection with the holding of the Anti-Terrorist Operation in Donbas.

 

National Bank permitted withdrawal of dividends for 2016

Within framework of further monetary liberalization, from May the National Bank of Ukraine allowed the start of repatriation of dividends for 2016 limiting it to the sum of USD 5 million a month.

Also the National Bank of Ukraine allowed banks to repay loans to non-resident banks rated at least “A3” / “A-” ahead of schedule, confirmed in the bulletin of the world’s leading rating companies — Fitch Ratings and/or Standard & Poor’s and/or Moody’s. Banks will also be able to repay loans provided by foreign creditors ahead of schedule at the expense of funds received from the placement of debt securities outside Ukraine.

In early June 2016, the National Bank allowed the repatriation of dividends accrued to foreign investors for the period of 2014-2015 so as to improve the investment climate. At the same time,  the country’s central bank set a maximum amount of dividends, which is allowed to be returned abroad: during a calendar month, it should not exceed the larger of two limit values — USD 1 million (its equivalent) or 10% of the total amount of dividends.

If the abovementioned 10% exceeds USD 5 million, then the maximum sum of repatriation of dividends per month cannot exceed USD 5 million.

 

Parliament allowed reorganization of medical institutions into companies

The Verkhovna Rada has allowed reorganization of public health institutions into municipal and public non-profit companies.

A total of 280 MPs voted for the corresponding Draft Law No. 2309a-d On Amending Certain Legislative Laws of Ukraine Regarding Improvement of Legislation on Health Care.

The purpose of the Draft is comprehensive reform of health care system of Ukraine to create a network of public and municipal health institutions with a sufficient level of autonomy so as to provide effective and timely medical care for the population.

The Draft establishes a number of incentives, including financial ones, for such reorganization of health care institutions; regulates the specifics of concluding labor contracts with their directors and specifies the sources of funding for the provision of medical care by health care institutions.

 

Parliament adopted draft law on electricity market

The Verkhovna Rada has adopted Draft Law No. 4493 On the Electricity Market of Ukraine.

The Draft establishes the legal, economic and organizational basis for the electricity market’s functioning and regulates relations involving the production, transmission, distribution, purchase and sale of electricity.

The document implements standards of the EU’s Third Energy Package, including on the issue of dividing companies into areas of distribution and transmission of electricity.

It also provides for a two-year transition period, from its coming into force, to implement all segments of a new market, including the bilateral agreements market, day-ahead market, intra-day market, balancing market, and ancillary services market.

The Draft also enhances the list of market participants with a new participant, a trader. This can be any business entity that purchases electricity exclusively for the purpose of reselling it, except for its resale to a consumer.

Furthermore, a system of special responsibilities shall be introduced for participants of the electricity market: purchase of electricity according to the “green” tariff; provision of all-in-one services; performing the functions of a “last resort” provider, making compensation payments, providing ancillary services.

 

Subscribe
The Ukrainian Journal of Business Law

Subscribe to The Ukrainian Journal of Business Law right now and enjoy the most relevant issues on doing business in Ukraine on your device or in print.

All this for just USD 9.99 a month.

 

Subscribe now

Яндекс.Метрика