Draft

Improving connection to electric power grids

Draft Act No.4310-1 On Amendments to Some Acts (regarding improving connection to electric power grids) providing for substantial simplification of procedures, reducing the connection time to electric power grids by several fold and reducing business costs, was submitted to Parliament. This Draft should provide predictability of mechanism, both in terms of necessary expenses and in terms of procedural and technical requirements, compliance with which would be a sufficient condition to ensure connection to electric power grids. The Draft proposes to supplement the On Electric Power Industry Act with standards which clearly and in detail regulate types of connection to electric power networks and to introduce a new type of connection — standard complex connection with a maximum capacity of up to 5000 kW. The purpose of this standard is to increase the range of standard connection applications for connection requestors. The Draft was developed in accordance with the Roadmap for implementation of best practices of effective and quality control in order to improve Ukraine’s position in World Bank Doing Business ranking, approved by the Cabinet of Ministers of Ukraine on 16 December 2015.

Support of international arbitration in Ukraine

Draft Act No.4351 On Amendments to Some Legislative Acts of Ukraine Concerning Issues of Judicial Control and Support of International Commercial Arbitration was registered on 31 March 2016. The purpose of the Draft was defined as increase of arbitration effectiveness, as well as attractiveness of Ukraine as a place of arbitration. Task of this reform is to ensure conditions for development and effective functioning of international arbitration in Ukraine, as well as elimination of regulatory inconsistencies and obstacles to formation of for-arbitration practice in state courts. Also the Draft focused on enhancing effectiveness of judicial control related to international commercial arbitration in Ukraine. Among the main innovations is reduction of number of judicial authorities to address all issues of judicial control and cooperation with international arbitration to two — the Court of Appeal of Kiev and the High Specialized Court of Ukraine for Civil and Criminal Cases can be distinguished. Also, the Draft No.4351 provides for possibility of applying for interim measures in support of international arbitration after initiation of arbitration proceedings. Exceptions, provided for by the procedural legislation of Ukraine in relation to securing a claim prior to filing of complaint, do not generally relate to international arbitration.

Local authorities can change target designation of private land lots

The Supreme Council of Ukraine supported Draft No.4355 On Amendments to Certain Legislative Acts of Ukraine regarding Accretion of Powers of Local Government Authorities as for Land Management and Strengthening of State Control over Land Use and Protection in the first reading.

On the basis of the explanatory note to the Draft, the purpose for adoption of this legislative instrument is to support a voluntary association belonging to a local territorial community in the countryside to create the ability of local government authorities to execute the powers granted to them and to optimize legal regulations in the area of state control over the use and protection of land.

In particular, the document provided for establishing the fact that state-owned land outside a residential community is transferred to the ownership of territorial communities, created in accordance with the law, and determination of the procedure for such transfer.

The Draft proposes to transfer to rural, village, city councils the power to administer state-owned land outside a residential community as the delegated authority (except for defense lands, lands of nature reserve and of other environmental purposes at objects of nature reserve fund of national importance, and others, that are important for the state).

The power for implementing state control over the use and protection of land is supposed to be provided to the central body that exercises state policy in the field of land relations, as well as to executive bodies of rural, village, and city councils.

It is also expected to provide local authorities with powers to change the purpose of private ownership of land lots and to determine the procedure for establishing (restoring) boundaries of territorial communities in the event of ambiguity or dispute over such boundaries.

Amendments to the Tax Code

Draft Act No.4413 On Amendments to the Tax Code of Ukraine regarding Introduction of Tax on Transactions in Offshore Jurisdictions has been registered in the Ukrainian Parliament. The Draft suggests adding Section X Tax on Transactions in Offshore Jurisdictions to the Tax Code of Ukraine to introduce the new tax. The tax rate is set at 15% of the amount payable for the account of the offshore non-resident. Furthermore, the Cabinet of Ministers of Ukraine has to expand the list of offshore zones to prevent tax evasion by business entities that have business transactions with non-residents registered in countries which are not parties to double taxation treaties between them and Ukraine.