News (#10 October 2017)



SETAM transferred to Blockchain

The official launch of the first electronic auction on the basis of blockchain technology has been held in Kiev. The solution was implemented into SETAM, the system for selling confiscated property, the largest auction in the country.

Thus, SETAM became the world’s first electronic auction to operate on the basis of blockchain. The new trading platform will be called OpenMarket.

The Memorandum on Cooperation in the field of blockchain technology integration into the basic registers and SETAM, the system for selling confiscated property, was signed on 8 June.


Banking & Finance

NBU to publish financial statements of banks on monthly basis

Starting from September the National Bank of Ukraine will begin regular monthly disclosure of information on the individual performance of banks. The information will be provided in the context of each bank and will contain the following: balance sheet list; composition of loans granted to individuals and business entities by categories; distribution of loans to business entities by types of economic activity.

The NBU expects that the disclosure of this information will also ensure greater transparency in the activities of individual banks and of the banking sector as a whole. Moreover, from the beginning of 2018, the NBU plans to make public reports on the structure of regulatory capital in the context of individual banks.


EBRD support for innovative projects

The EU and EBRD have allocated EUR 160,000 to six Ukrainian companies within the framework of the finance and technology transfer centre for climate change program (FINTECC) in the form of climate innovation vouchers (CIV).

The sum of EUR 160,000 is allocated to the following Ukrainian companies: VTS-Komplekt (Dnipro), Engineering Innovations (Lviv), Ecoisme, ElectroCars, Institute for Environment and Energy Conservation and Ukrtsentr-Group.

The CIV program, which has a budget of EUR 1 million, is meant to support about 50 innovative projects in Ukraine.

It is reported that there will be three more stages of competitive selection, during which additional beneficiaries will be determined. The number of vouchers for individual projects can range from EUR 20,000 to EUR 50,000 depending on their innovation, complexity and potential benefits.

The CIV project is implemented by Ukrainian NGO Greenkubator, and Ukraine is the first country among those countries where the EBRD operates that can use this tool.


Trade Policy

Ukraine to initiate dispute with Kazakhstan within WTO framework

Within the framework of the World Trade Organization, Ukraine has sent a demand for holding consultations with the Republic of Kazakhstan in connection with anti-dumping measures against Ukrainian pipes in the Eurasian Economic Union.

Ukraine believes that the continuation of anti-dumping measures related to the import of certain types of steel pipes of Ukrainian origin adopted in 2016 that are in force in the territory of the EAEC, particularly in the Republic of Kazakhstan, in their current amount and form does not meet the requirements set out in the individual provisions of the Agreement on the Application of Article VI of GATT 1994.

According to the established procedure, Kazakhstan should respond to the received demand for holding consultations within 10 days, confirming its readiness to enter into consultations within the framework of the case. After obtaining consent from Kazakhstan, the date and venue for holding consultations will be agreed.



New service for VAT payers begins

The State Fiscal Service has finalized the Taxpayer Account in the part on granting payers of value added tax access to the real-time data of the Unified Register of Tax Invoices (URTI) in relation to tax invoices and/or calculations of adjustments made by them or their counterparties (TI/CA).

After identification using EDS in their personal account, VAT payers have the opportunity to review information about TI/CA, which were registered, or whose registration was suspended in accordance with the requirements of Clause 201.16 Article 201 of the Tax Code of Ukraine, as well as in relation to which SFS Commission decided to register or refuse TI/CA registration in URTI.

An information search in URTI is carried out by TI/CA basic details, as well as by the personal tax number of the seller and the buyer of goods/services. Furthermore, payers have the opportunity to download TI/CA in electronic from (in xml format with EDS).


Information Security

Initiative to establish EU Cybersecurity Agency

The European Commission has reported that new European cybersecurity certificates will ensure the reliability of billions of devices (Internet of things) connected to today’s critical infrastructure, such as energy and transportation networks. Cybersecurity certificates will be recognized by Member States, thereby reducing administrative costs and costs for companies.

The Agency will be established on the basis of the existing European Union Agency for Network and Information Security
(ENISA). The Agency will be granted a permanent mandate and be able to provide effective aid to Member States and to respond to cyber attacks. The Cybersecurity Agency will also help to introduce a pan-European certification system, whose creation is proposed by the European Commission to ensure the use of only protected products.


Antimonopoly Committee of Ukraine

AMCU fined two companies for collusion in Yuzhny Sea Port

On the basis of the facts established by detectives of the National Anti-Corruption Bureau, the Antimonopoly Committee of Ukraine has recognized collusion in the actions of bidders in a tender for procurement of dredging works and services at Yuzhny Sea Port.

The AMCU imposed a fine totaling about UAH 23 million on two enterprises that resorted to anti-competitive concerted practice. The case involves the company LIGOS UA and Ukrsviazhydrostroy, which are nowprohibited from participating in tenders for procurement of goods, works or services involving the state for the next three years.

A reminder that in 2015 the Yuzhny branch of the SE Ukrainian Sea Ports Authority carried out procurement of operational dredging works in Yuzhny Sea Port waters. Following the tender results, LIGOS UA was awarded the contract for a total of almost UAH 134 million. According to the investigation data, this procurement was carried out at an unreasonably high price.

As a result, an investigation was initiated in late 2015. The mentioned episode, as well as a number of similar procurements, is being investigated by detectives of the National Anti-Corruption Bureau. Law-enforcers believe that actual total damages inflicted to national interests amounts to about UAH 300 million.

In May 2017, China Harbor Engineering Company Ltd. (China) won an open tender for implementation of the first stage of a reconstruction project of a sea approach channel and inland approach channels to deep-water terminals in Yuzhny Sea Port (Odessa Region).



Advertising of some dietary supplements and cosmetic products recognized unfair

On the basis of a letter from the mass media, the State Service of Ukraine for Food Safety and Consumer Protection studied the issue of distribution of the brochure Stranichka Zdorovia (Page of Health) containing advertisements of dietary supplements and cosmetic products Okovirin, Muzhskaya sila, Kedrovy effect, Diabetnorm, Cardionyl, Uhonorm, Osteolife, Alkostopin and Krakatau. Following the results of a probe, it was established that the advertising of the above-mentioned dietary supplements and cosmetic products contains images of individuals and uses their names without their written consent; reference to the fact that supplements and products have medicinal properties; statements about their therapeutic effect, pain relief, letters of gratitude, related to treatment and alleviation of diseases course symptoms.

Information in advertising is presented in such a way that it misleads consumers due to it being unreliable and exaggerating the medicinal properties of supplements and products; they can harm the health of citizens through their incorrect application.

Taking into account the above, the State Service of Ukraine for Food Safety and Consumer Protection decided to recognize the advertising of the above-mentioned dietary supplements and cosmetic products as unfair and to suspend its distribution.

This decision was sent to the manufacturer of the abovementioned products to be applied in its activities and for notification of business entities engaged in wholesale and retail purchase of such products.



Google bought into HTC business

American corporation Google and Taiwanese company HTC Corporation have reached final agreement on cooperation.

Under the terms of the deal, HTC employees engaged in the development of Pixel smartphones will now work directly on Google. Moreover, the Don’t be evil corporation (Corporation of Good) will have access to patents of the Taiwanese company and will be able to use them for its own purposes.

HTC continues to retain its entire business. The company will continue to create smartphones under the HTC brand, and will also work on its virtual reality helmet, which is called Vive.

It is planned to close the deal, whose value is USD 1.1 billion, early next year, as it still needs to be approved by a number of authorities.


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