Legislative news digest: LEGAL HOTLINE 25.01.2018

THE LAW ON PRIVATISATION OF STATE-OWNED AND MUNICIPAL PROPERTY WAS ADOPTED

On January 18, 2018, the Parliament adopted the draft Law No. 7066 “On Privatisation of State-owned and Municipal Property” aimed to simplify the privatisation procedure and make it more open and transparent.

The privatisation objects are divided into small-scale privatisation objects (i.e., single property complexes of state-owned and municipal enterprises, corporate rights of the state in economic associations, unfinished construction objects, and other separate property) and large-scale privatisation objects (i.e., single property complexes and corporate rights of the state, the total value of which for the last accounting year is more than UAH 250 million).

Small-scale privatisation objects will be sold exclusively at electronic auctions. The sale of large-scale privatisation objects will take place at the auction with advisers involved on a competitive basis and entrusted with auditing the performance indicators of privatisation objects, developing a financial model, determining the starting price, and searching for potential investors.

In order to protect investors’ rights, the Law provides for the possibility of resolving disputes between a seller and a buyer in the International Commercial Arbitration Court.
The Law also establishes that the following cannot be buyers of privatisation objects: legal persons in which the aggressor state has substantial shareholdings and entities controlled by such legal persons; individuals and legal persons against which sanctions were imposed; legal persons, information on beneficiary owners thereof is not disclosed, etc.

At present, the President is expected to sign the Law.

THE CABINET OF MINISTERS OF UKRAINE (CMU) REPEALED THE TECHNICAL REGULATIONS FOR ECO-LABELLING

By its Resolution of January 11, 2018, the CMU repealed the Technical Regulations for Environmental Labelling approved by its Resolution No. 529 of January 18, 2011.
The said Regulations established the requirements for assigning and using optional (voluntary) environmental labelling of goods and services in Ukraine.

The Technical Regulations for Environmental Labelling were repealed due to their non-compliance with Article 24 of the Law of Ukraine “On Technical Regulations and Conformity Assessment”, according to which voluntary conformity assessment of products shall be carried out without using technical regulations and on a voluntary basis, in any form and in accordance with any stated requirements.

The CMU’s Resolution will come into force as from the date of its publication.

THE CRITERIA FOR THE REIMBURSEMENT OF EMPLOYERS’ EXPENSES FOR VOCATIONAL TRAINING OF EMPLOYEES WERE ESTABLISHED

By its Resolution No. 11 of January 11, 2018, the CMU approved the Criteria for assessing the admissibility of providing government aid to economic entities for purposes of vocational training of employees.

The categories of recipients of government aid for vocational training include economic entities operating in any field.

The expenses related to vocational training of employees include: expenses of the teaching staff and employees, who undergo vocational training (i.e., travel expenses, purchase of educational and other materials, etc.); expenses for counselling services related to vocational training; expenses for employee remuneration for the period of their vocational training; administrative, overhead, and other indirect expenses incurred during the period when employees undergo vocational training.

The Criteria, in particular, stipulate that the maximum amount of reimbursement to economic entities of expenses for vocational training (retraining) of employees shall not exceed 50% of the amount of such expenses.

THE SINGLE LIST OF DUAL-USE GOODS WAS APPROVED

Control over international transfers of dual-use goods is carried out according to the Law of Ukraine “On State Control over International Transfers of Military and Dual-Use Goods”, which is aimed at preventing the proliferation of weapons of mass destruction, means of their delivery, and conventional weapons.

Previously, the list of dual-use goods consisted of separate lists of goods that could be used in the process of creating conventional weapons, military or specialised equipment, missile, nuclear, chemical, and bacteriological weapons. By its Resolution No. 1 of January 11, 2018, the CMU approved the single list of dual-use goods complied on the basis of the corresponding EU list.

It is expected that the introduction of a single list of dual-use goods will make it easier for exporters of such goods to enter the EU market. The changes come into force on April 19, 2018.

THE LIST OF MEDICINAL PRODUCTS PROHIBITED FOR ADVERTISING WAS UPDATED

The Order of the Ministry of Healthcare of Ukraine No. 1408 of November 14, 2017, which came into force on January 16, 2018, amended the List of Over-the-Counter (OTC) Medicinal Products Prohibited for Advertising. The updated list contains mainly cold medicines and anaesthetics.

Advertisers and advertising producers guilty of the dissemination of advertisements of medicinal products included in the list of OTC medicinal products are liable for violating the law on advertising in the form of a fine in the amount of 5 times the cost of disseminated advertisements.