Legislative news digest: LEGAL HOTLINE 20.11.2017

UKRAINIAN BUSINESSES WILL GET A TOOL FOR SEARCHING CUSTOMERS ABROAD

On November 21, 2017, the Ministry of Economic Development and Trade of Ukraine launched the official portal of COSME (the EU Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises in Ukraine). The COSME portal contains information on possible ways to share experiences with the EU businesses, potential ways to enter new markets outside of Ukraine, as well as opportunities to access funding from various sources. Besides that, the Programme aims to improve the priority areas of the national economy (i.e., the IT sphere, tourism, and industries). The Programme is scheduled to run until 2020, its budget is EUR 2.3 billion, and Ukrainian entrepreneurs will be able to participate in its projects worth a total of EUR 900 million.

RULES OF PARTICIPATION IN THE TENDER FOR THE RIGHT TO LEASE STATE PROPERTY WERE CHANGED

At its meeting held on November 22, 2017, the Cabinet of Ministers of Ukraine adopted the Resolution No. 886 “On Amendments to the Procedure for Holding a Tender for the Right to Lease State Property”, according to which all companies intending to take part in the tender for the right to lease state property now have to pay the guarantee fee of at least 6 monthly rentals. This payment will be returned to everyone, except for the winner of the tender, to whom it will be credited for future rental payments in the event of concluding a lease agreement. Due to such changes, the companies, which have registered for participation in the tender in order to formally win and then refuse to sign an agreement, will lose the amount of the guarantee fee.

THE PROCEDURE FOR MAKING PAYMENTS FOR THE IMPORTATION OF GOODS WAS SIMPLIFIED

On November 23, 2017, the NBU’s Resolution No. 118 of November 21, 2017 “On Amending Certain Normative Legal Acts of the NBU” came into force. The Resolution, inter alia, abolished the requirement for banks to make mandatory advance payments in foreign currency for importing goods under a foreign economic agreement, the total cost of which exceeds USD 5 million (in the UAH equivalent), by exclusively using the letter-of-credit payment method. From now on, in such cases it will be possible to make advance payments without using letters of credit.

THE PROCEDURE FOR SALE OF DISTRAINED PROPERTY WAS CHANGED

On November 24, 2017, the Order of the Ministry of Justice of Ukraine No. 3573/5 of November 14, 2017 “On Amendments to the Procedure for the Sale of the Distrained Property” came into force. According to this Order, from now on, the movable property that is subject to sale will be deposited with the organiser of the auction no later than the day of the department of the State Enforcement Service of Ukraine (SES) or a private enforcement officer forwarding a request for the sale of such property. Also, the Order was supplemented with the provision stipulating that in case the electronic auction for the mortgaged property sale is declared as not having taken place, the act on the mortgaged property sale (in case the mortgage holder purchased the mortgaged property at the initial price by way of netting their secured claims against the property price) will be issued based on the protocol drawn up on the basis of the results of the electronic auction, which has not taken place.