Legislative news digest: LEGAL HOTLINE 11.04.2019

Rate of Export Duty on Waste and Ferrous Steel Scrap Increased

The Law of Ukraine “On Amending Section II “Final and Transitional Provisions” of the Law of Ukraine “On Amending Certain Laws of Ukraine in Order to Decrease the Ferrous Steel Scrap Deficit on the Domestic Market” entered into force on 5 April 2019.

This law has increased the rate of the export duty on ferrous steel scrap and extended the period of effect of the increased rates.

Thus, the rate of the export duty on the commodities set out in Clause 1 of the Law of Ukraine “On the Export Duty on Waste and Ferrous Steel Scrap” is EUR 58 per tonne until 15 September 2021.

We would like to remind that the rate of EUR 42 per tonne has to be used until September 2019 before the amendments entered into force.

Strategy of National Environmental Policy of Ukraine until 2030 Approved

The Law of Ukraine “On the Fundamentals (Strategy) of the National Environmental Policy of Ukraine for the Period until 2030” will be put into effect on 1 January 2020 entered into force on 31 March 2019.

According to this Law, the purposes of the national environmental policy will be attained in two stages:

• The environmental situation is supposed to be stabilised by 2025 by making changes in the government administration system carried out by reformation of the government environmental administration, implementing the European environmental regulations and standards, improving the environmental registration and control systems, introducing the mechanisms for encouraging companies to be energy-efficient etc.;
• Material changes in improvement of the environment are expected by 2030 through balancing the social and economic needs and objectives in the area of environmental protection, development of the environmentally efficient partnership between the state, economic operators and the public etc.

Mechanism for Detecting Shell Legal Entities among Non-Residents Established

The resolution of the Board of the National Bank of Ukraine dated 2 April 2019 amending the Regulations on the Financial Monitoring by the Banks approved by the resolution of the Board of the National Bank of Ukraine entered into force on 4 April 2019.

According to the amendments:

• The “shell company” has been defined as a non-resident legal entity that does not carry out actual economic activity in the country of its registration (there are insufficient assets and/or employees for the respective type of economic activity), and/or the ownership structure of which does not allow establishing the real ultimate beneficiaries (controllers);
• The list of documents and information to be checked by the bank in order to confirm that a non-resident legal entity is not a shell company has been established;
• The bank’s actions to be proceed in case of establishing of fact that a non-resident legal entity is a shell company have been determined.

Restated Instruction on the Procedure for Opening and Closing Accounts of Bank Customers and Correspondent Accounts of Resident and Non-Resident Banks

The resolution of the Board of the National Bank of Ukraine “On Amending Certain Regulations of the National Bank of Ukraine” approved the Instruction on the Procedure for Opening and Closing Accounts of Bank Customers and Correspondent Accounts of Resident and Non-Resident Banks entered into force on 4 April 2019.

Since now on:

• Accounts may be opened for new entities of the financial market of Ukraine, i.e. non-resident legal entities, including foreign investment funds and asset management companies acting on behalf of such investment funds;
• The bank customers’ obligation to submit a signature card when opening accounts has been cancelled. Thus, the account will be administered on the basis of the list of the persons entitled thereto in accordance with the laws, with no notarial certification required;
• In case the legal entity’s name is changed, the accounts in use do not have to be closed.

Road Traffic Rules as to Using the E-Certificate of Mandatory Insurance of Civil Liability of Motor Vehicle Owners Amended

Resolution of the Cabinet of Ministers of Ukraine No. 258 dated 27 March 2019 amending Sub-Clause “e” of Clause 2.1 of the Road Traffic Rules approved by Resolution of the Cabinet of Ministers of Ukraine No. 1306 dated 10 October 2001 (hereinafter – the “Rules”) entered into force on 3 April 2019.

This resolution establishes the right of drivers who have entered into an electronic contract for mandatory insurance of civil liability of motor vehicle owners to have and demonstrate the visual form of the insurance certificate by the legal request of the law enforcement authorities. The insurance certificate in such form may be shown on the screen of a mobile telephone, tablet or another electronic device.

As a reminder, the electronic certificate was introduced by Order of the National Commission for State Regulation of the Financial Services Markets No. 3631 dated 31 August 2017 “On Approving the Amendments to the Regulations on the Special Aspects of Entering into Contracts for Mandatory Insurance of Civil Liability of Motor Vehicle Owners”. However, Sub-clause “e” of Clause 2.1 of the Rules obliged the drivers to carry insurance certificates in hard copy until 3 April 2019.