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16.06.2015 Olesya Mykhailenko Studied Mediation Aspects in the Area of the Intellectual Property Law

Olesya Mykhailenko, Associate at Gvozdiy and Oberkovych Law Firm participated in a Round Table Conference named Mediation in the area of the intellectual property law (hereinafter – the IP), which was held on June 11, 2015 by the State Intellectual Property Service of Ukraine together with National Association of Mediators of Ukraine.

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Legal updates as of September 23, 2016

23.09.2016

MANUFACTURING OF ORGANIC PRODUCTS WILL BE REHASHED

The Decree No. 587 of the Cabinet of Ministers of Ukraine (hereinafter the CMU) came into force on 16 September 2016. It establishes the manufacturing requirements for plant organic products (raw materials) and agricultural and technological conditions during manufacture thereof.

The document clearly states that the basis of organic products manufacture is the exclusion from the manufacturing process of chemical fertilizers, pesticides, genetically modified organisms and their derivatives and products manufactured from genetically modified organisms, as well as preservatives. The Decree provides for detailed manufacturers’ responsibilities in the organic products manufacturing process.

APPROVED LIST OF GOODS AND EXCHANGES TO CONTROL TRANSFER PRICING

The CMU approved the list of quoted goods and world commodity exchanges in order to establish compliance of the conditions of controlled transactions with the arm’s length principle.

The list has been approved in accordance with Article 39 (clause 39.2, paragraph 39.2.1, subparagraph 39.2.1.3) of the Tax Code of Ukraine.

See the list at: http://www.kmu.gov.ua/document/249311169/P0616.doc

IMPROVED PROCEDURE FOR OBTAINMENT OF STATE SUPPORT BY FARMS

The Government improved the mechanism for utilization of funds aimed at financial support to farmers that win tenders.

In particular, the procedure for the selection of successful tenderers is improved; the maximum amount of financial support to farmers on a rotating basis increased to UAH 500 thousand.

At the same time, the range of areas subject to financial support has been expanded and the priorities when selecting the successful tenderers have been established (membership in agricultural service cooperatives; cattle growing and breeding; cultivation of land with the area not exceeding 500 hectares; laying out young fruit and berry plantations and vineyards; transition to manufacture of organic products (raw materials)).

REDUCED DISCOUNT RATE OF THE NATIONAL BANK OF UKRAINE (TO 15 %)

The Board of the National Bank of Ukraine decided to reduce the discount rate to 15 % per annum since 16 September 2016.

Please be reminded that the discount rate of the National Bank of Ukraine has been 15.5 % since 29 July 2016.

MODIFIED FINANCE, CREDIT AND FOREIGN EXCHANGE REGULATION

On 14 September 2016, the National Bank of Ukraine adopted Resolution No. 386 that provides for easing of certain administrative restrictions introduced in 2014-2015 to stabilize the situation in the monetary and foreign exchange markets:

- the validity of the requirement for the sale of 65 % of foreign currency earnings has been extended until 15 December 2016;

- settlements on goods export and import transactions should be made within 120 days;

- authorized banks are prohibited to discontinue the supervision over export transactions of clients on the basis of documents on termination of obligations by set-off of reciprocal homogenous claims;

- transactions on sale of foreign currency or precious metals to one person in one banking (business) day in the amount not exceeding the equivalent of UAH 12,000 within a single banking institution are allowed;

- foreign currency is transferred outside Ukraine under current non-commercial currency transactions on behalf of individuals:

·         without supporting documents from the current foreign currency account or without opening of such an account – for the amount equivalent to not more than UAH 15,000 in one banking (business) day;

·         under supporting documents from the current foreign currency account – for the amount equivalent to more than UAH 15,000 but not more than UAH 150,000 per month.

- Authorized banks are required to limit the giving out (receipt) of cash in foreign currency or precious metals from current accounts and deposits through cash departments and ATM to the equivalent of UAH 250,000 per day per client at the official rate of the National Bank of Ukraine;

- Resident companies that got the loans from non-residents may buy foreign currency to repay such debt even if they have foreign currency exceeding USD 25,000 on their own accounts. Individuals are prohibited to make cash transactions based on individual licences of the National Bank. The ban does not cover the transactions made on the basis of individual licences of the National Bank issued before the enactment of the above Resolution, etc.

These restrictions shall be effective from 15 September 2016 through 15 December 2016.

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