Kategorie-Archiv: Ukraine

Ukraine — Übersicht

Ukraine

Lage
Osteuropa
Fläche
gesamt: 603 700 qkm
Land
603 700 qkm
Wasser
0 qkm
Landesgrenzen
gesamt: 4 558 km
Grenzstaaten
Belarus (Weißrussland) 891 km, Ungarn 103 km, Moldau 939 km, Polen 428 km, Rumänien 531 km, Russland 1,576 km, Slowakei 90 km
Küste
2 782 km (am Schwarzen Meer)

Ukraine Karte

Daten des Statistischen Bundesamtes

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Bevölkerung 49,1 Mill. 2001
Fläche 603700 qkm 2001
Bevölkerungsdichte 81 Einw. je qkm 2001
Arbeitslosenquote 11,7 % 2000
Bruttoinlandsprodukt (BIP) 31791 Mill.US-$ 2000
Jährliches BIP-Wachstum (real) 5,8 % 2000
BIP je Einwohner (real) 896 US-$ 2000
Inflationsrate 22,7 % 1999
Importe 13955 Mill.US-$ 2000
Exporte 14579 Mill.US-$ 2000
Saldo der Im- und Exporte 624 Mill.US-$ 2000
PKW-Dichte 106 je 1000 Einw. 2000
Personal-Computer 19 je 1000 Einw. 2001
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Hauptstadt
Kiew (2 622 000 EW)
Klima
Das Klima variiert von gemäßigten kontinentalem Klima im Nordosten bis zu mediterranem Klima an der Südküste der Krim (Schwarzmeerküste).

Ukraine gr. Karte

Beziehungen zwischen EU und Ukraine

Zum 12. Gipfel zwischen der EU und der Ukraine trafen sich der Präsident der Europäischen Kommission José Manuel Barroso sowie die EU-Kommissarin für Außenbeziehungen und Europäische Nachbarschaftspolitik Benita Ferrero-Waldner und der Außenhandelskommissar Peter Mandelson in Paris ein. Aus der Ukraine kamen Präsident Viktor Juschtschenko und Außenminister Wolodymyr Ogrysko. Erst am 8. September 2008 hatten sich die EU und die Ukraine darauf verständigt, dass das neue Abkommen für die weitere Zusammenarbeit ein ?Assoziationsabkommen? sein soll. Anlässlich des Gipfels sollen die in den vergangenen 12 Monaten erzielten erheblichen Fortschritte der Verhandlungen über das neue Abkommen gewürdigt werden. Außerdem wird ein Visum-Dialog ins Leben gerufen, der langfristig in der Aufhebung der Visumspflicht zwischen der EU und der Ukraine münden soll. Gesamtziel des Gipfels ist es, die Beziehungen zur Ukraine auf eine neue Basis zu stellen und zu intensivieren.

Im Vorfeld des Gipfels erklärte Kommissionspräsident Barroso:

„Die EU und die Ukraine müssen nunmehr ihre feste gemeinsame Absicht, ihre Beziehungen und Zusammenarbeit zu intensivieren, in die Tat umsetzen und sich auf ein Assoziationsabkommen verständigen. Dafür bedarf es Anstrengungen von beiden Seiten, doch der Lohn werden spürbare Vorteile für alle Bürger sein.“

Die Kommissarin für Außenbeziehungen und Europäische Nachbarschaftspolitik, Benita Ferrero-Waldner, führte weiter aus:

„Vor einem Jahr hatte niemand zu hoffen gewagt, dass die Verhandlungen über das neue Abkommen so rasch voranschreiten würden. Die Verhandlungskapitel politischer Dialog, Außen- und Sicherheitspolitik, Freiheit, Sicherheit und Recht sowie die meisten Bereiche der wirtschaftlichen Zusammenarbeit konnten bereits vorläufig abgeschlossen werden. Der neue Visum-Dialog, der langfristig in der Aufhebung der Visumspflicht zwischen der EU und der Ukraine münden soll, ist ein weiteres untrügliches Zeichen für unsere feste und aufrichtige Entschlossenheit, unsere Beziehungen zur Ukraine zu intensivieren. Damit diese verstärkte Zusammenarbeit ein Erfolg wird und den Bürgern den größtmöglichen Nutzen bringt, bedarf es jedoch politischer Stabilität in der Ukraine.“

EU-Außenhandelskommissar Peter Mandelson erklärte: „Ein zentraler Teil der angestrebten Übereinkunft zwischen der EU und der Ukraine ist ein umfassendes Freihandelsabkommen. Dabei geht es nicht nur darum, den Handel und die Investitionen zu beleben. Die Verhandlungen sind vielmehr ein Zeichen für die kontinuierliche politische und ökonomische Integration der Ukraine in die Weltwirtschaft und für die intensive Partnerschaft mit der EU.“

Anlässlich des Gipfels werden die Vertreter der Europäischen Union ihre Unterstützung für den politischen und wirtschaftlichen Reformprozess in der Ukraine zum Ausdruck bringen. Außerdem werden sie untersuchen, welche Fortschritte in den zahlreichen Bereichen, in denen die EU und die Ukraine bereits eng zusammenarbeiten ? wie Energie, Handel sowie Freiheit, Sicherheit und Recht ? im vergangenen Jahr erzielt worden sind.

Außerdem stehen internationale Themen wie der Georgienkonflikt und die gestrige Reise des amtierenden EU-Ratspräsidenten Nicolas Sarkozy, des Kommissionspräsidenten José Manuel Barroso und des EU-Chefdiplomaten Javier Solana nach Moskau und in die georgische Hauptstadt Tiflis auf der Tagesordnung des Gipfels.

Wirtschaftstag Ukraine 2007

Am 8. November veranstalten das Deutsch-Ukrainische Forum e.V. und die InterCom Sachsen-Anhalt GmbH den „Wirtschaftstag Ukraine 2007“ in Magdeburg. Bereits jetzt liegen rund 130 Anmeldungen vor, darunter mehr als 30 ukrainische Unternehmen, die mit potenziellen deutschen Partnern ins Gespräch kommen wollen. Angeführt wird die offizielle ukrainische Delegation von Wirtschaftsminister Anatolij Kinach, der zugleich auch dem ukrainischen Unternehmerverband USPP vorsteht. Veranstaltungsort ist die IHK Magdeburg.

Mit 47 Mio. Einwohnern und einem robusten Wirtschaftswachstum von fast 8 % ist die Ukraine einer der interessantesten Märkte Europas. Das zeigt sich auch in den seit Jahren steigenden Lieferungen aus Deutschland (2006 plus 26 %) und anhaltend hohen ausländischen Investitionen von 5 bis 6 Mrd. USD pro Jahr.

Damit auch Unternehmen aus Sachsen-Anhalt verstärkt vom Aufschwung der ukrainischen Wirtschaft und dem steigenden Privatkonsum (2006 plus 14 %) profitieren können, laden InterCom Sachsen-Anhalt und das Deutsch-Ukrainische Forum ein zum „Wirtschaftstag Ukraine 2007“ am 8. November in Magdeburg. Fachleute aus Deutschland und der Ukraine werden über Zugangsmöglichkeiten und Chancen des ukrainischen Marktes informieren und auf ganz praktische Fragen für Handelsbeziehungen und Investitionen eingehen.

Während des ukrainischen Wirtschaftstages am 8.11.2007 gibt es zwei hochrangig besetzte Diskussionsrunden mit deutschen und ukrainischen Experten: Am Vormittag zum Thema „Die Ukraine – Chancen für Sachsen-Anhalts Firmen“ und am Nachmittag zum Thema „Praktische Fragen des Markteintritts in der Ukraine“. Neben einer Kiewer Universität und einigen Forschungseinrichtungen nehmen vor allem Metall verarbeitende Unternehmen, Firmen des Energiesektors, des Maschinen- und Anlagenbaus, der Möbel- und Bauwirtschaft sowie zwei Banken und eine führende Versicherung der Ukraine teil.

Zum Abschluss des „Wirtschaftstages Ukraine 2007“ laden die Informations- und Kulturagentur der Ukraine bei der ukrainischen Botschaft (IKAU) und die Magdeburger Galeristin Galina Brieger zur Vernissage in das ArtDepot Magdeburg, Große Diesdorfer Straße 200 a. Diese Veranstaltung in einem früheren Straßenbahndepot ist zugleich der festliche Auftakt für das Sechste Internationale Kunstfestivals in Magdeburg mit 400 Ölgemälden von 60 der besten ukrainischen Künstler. „Da zugleich ein neuer Jahrgang von Forschungsstudenten aus dem ukrainischen Donezk an der hiesigen Otto-von-Guericke-Universität begrüßt werden kann, entwickeln sich Magdeburg und Sachsen-Anhalt zunehmend zu dem Ukraine-Zentrum in Deutschland“, fasst der Vorsitzende des Deutsch-Ukrainischen Forums die jüngsten Entwicklungen zusammen.

Die Teilnahme des Wirtschaftsministers der Ukraine, Anatolij Kinach, mit einer Delegation ukrainischer Unternehmer am „Wirtschaftstag Ukraine 2007“ in Magdeburg zeigt den hohen Stellenwert der ostdeutschen Wirtschaft in der Ukraine.

Im Rahmen des „Wirtschaftstages Ukraine“ findet eine Kooperationsbörse mit deutschen und ukrainischen Unternehmen statt. Auch der ukrainische Unternehmerverband USPP und das Ukrainisch-Deutsche Forum werden mit Partnerfirmen nach Magdeburg kommen, um Kooperationsmöglichkeiten mit deutschen Firmen zu ergründen.

Während des Wirtschaftstages findet zudem ein „Ländersprechtag Ukraine“ mit Einzelkonsultationen in der IHK Magdeburg statt. Dafür steht Herr Ralf Lowack, der Leiter des IHK-Firmenpools Ukraine (Kiew), am 8. November als fachkundiger Berater ab 10:30 Uhr zur Verfügung.

Ihre Ansprechpartner:

Deutsch-Ukrainisches Forum e.V.
Herr Thomas Nawrath
Telefon (0391) 25 498 23
Telefax (0391) 25 498 20
E-Mail d-u-forum at gmx.de

InterCom Sachsen-Anhalt GmbH
Frau Ines Kaiser
Alter Markt 8
D – 39104 Magdeburg
Telefon (0391) 5693 – 146
Telefax (0391) 5693 – 399
E-Mail: kaiser at magdeburg.ihk.de
Internet: www.magdeburg.ihk24.de

Bauvorhaben in der Ukraine

Die Europameisterschaft 2012 findet in Polen und der Ukraine statt. Die Spiele der EM 2012 werden voraussichtlich in vier ukrainischen Stadien ausgetragen. In Donezk, Dnipropetrowsk und Lemberg werden neue Stadien errichtet . Die Stadien in Odessa und Donezk (RSK Olimpijskyj) werden als Ausweichungsorte zur Verfügung stehen. Sie werden ebenfalls erneuert und erweitert, damit auch diese Stadien für eine Europameisterschaft geeignet sind. Auf Grund der fehlenden Infrastruktur müssen in der Ukraine außer der Stadien auch die Strassen, Hotels, Flughäfen neu gebaut oder renoviert werden. Das heißt eine Bauboom steht in der Ukraine bevor.

Es ist nicht ausgeschlossen, dass auch die deutschen Baufirmen sich am Bauvorhaben in der Ukraine beteiligen werden. Was muss dabei beachtet werden?

Durchführung der Bau- und Montagearbeiten unterliegt in der Ukraine der Lizenzierung gemäß dem Paragraph 9 Absatz 30 des Gesetzes „Über Lizenzierung der bestimmten Arten der wirtschaftlichen Tätigkeiten“ vom 01.06.2000 г. № 1775-III.

Der Lizenzierung unterliegen:

  • Projektierungs- und Entwicklungsarbeiten im Bauwesen;
  • Bau der tragenden und schützenden Konstruktionen;
  • Bau und Montage der Ingenieur- und Transportnetze.

Zuständig für die Lizenzerteilung ist Ministerium für Bau, Architektur, Wohn- und Kommunalwirtschaft der Ukraine.

Anschrift:
01025 Kiew – 25, Ukraine
Welika Zhitomirskastr., 9 (вул. Велика Житомирська, 9)
Tel.. (380 44) 226-22-08
Fax. (380 44) 228-83-90
E-Mail: komitet@build.gov.ua
www.minbud.gov.ua

Folgende Unterlagen müssen für die Lizenzerteilung eingereicht werden:

  • Antrag. Der Antrag muss die Angaben über Firmenname, Standort, Bankkonto, Identifikationskode, Art der wirtschaftlichen Tätigkeit, für die Antrag für die Lizenzierung gestellt ist, Standort der Zweigniederlassungen (wenn vorhanden sind) beinhalten;
  • Notariell beglaubigte Kopie der staatlichen Registrierungsurkunde der Geschäftstreibenden;
  • Notariell beglaubigte Bescheinigung über die Registrierung des Unternehmens im Einheitlichen Staatsregister der Unternehmens und Organen der Ukraine.
  • Umsatzsteuernummer;
  • Angaben, die Qualifikation der Mitarbeiter bestätigen: notariell beglaubigte Kopien der Diplome über Universitätsabschluss der Fachpersonals.
  • Angabe über die vorhandenen, erforderlichen für die Durchführung der geplanten Bauarbeiten, technische Anlagen und Maschinen.;
  • Angabe über Fachpersonal (Name und Vorname, Beschäftigungsdauer allgemein und in Baugewerbe);
  • Angabe über Arbeiter (Beruf, Anzahl der Arbeitern).

Wie man sieht, für die Lizenzerlangung muss das Unternehmen in der Ukraine registriert werden.

Ausländische Investitionen sind in Form einer Beteiligung an bestehenden ukrainischen Unternehmen und an gemeinsamen ausländisch-ukrainischen Unternehmensgründungen (Joint-Venture) möglich.

Zulässig ist auch die Gründung von Unternehmen, welche sich vollständig im Besitz ausländischer Investoren befinden, die Gründung von den Niederlassungen und Repräsentanzen oder der vollständige Erwerb bestehender Unternehmen.
Was bei der Unternehmensregistrierung in der Ukraine noch beachtet werden muss.

Einführung vom Investor in den Zollgebiet der Ukraine der erforderlichen für die Durchführung der geplanten Bauarbeiten technischen Anlagen und Maschinen ist von der Verzollung befreit, aber unter Voraussetzung, dass sie ins Stamm- bzw. Grundkapital des registrierten Unternehmen eingebracht werden.

Wenn die eingeführten in die Ukraine und eingebrachten ins Stamm- bzw. Grundkapital des Unternehmens technischen Anlagen und Maschinen binnen der 3 Jahren veräußert werden, unterliegen die veräußerten Gegenstände der Verzollung.

Die Einführung in die Ukraine der erforderlichen für die Durchführung der geplanten Bauarbeiten technischen Anlagen und Maschinen, sowie Materialien unterliegen der Umsatzsteuer. Steuersatz – 20%.

Man muss auch erwähnen, dass gemäß dem Paragraph 7.7.11 des Mehrwertsteuergesetzes die Personen, die weniger als 12 Kalendermonate als Mehrwertsteuerzahler in der Ukraine registriert war, dürfen keine Anträge für die Mehrwertsteuerrückerstattung stellen. Das heißt, dass die bei der Gegenständeeinfuhr bezahlte Mehrwertsteuer wird dem Investor erst nach 14 Monaten erstatten.

Wichtigste Steuerarten in der Ukraine sind:

  • Mehrwertsteuer: Steuersatz – 20%. Der Umsatzsteuer unterliegen die steuerbaren Umsätze.
  • Körperschaftsteuer: Steuersatz – 25 %. Besteuerungsgrundlage ist der Gewinn, das ist der Differenzbetrag zwischen den Betriebseinahmen und den Betriebsausgaben vermindert um die Afa.
  • Einkommensteuer: Steuersatz – 15%. Der Einkommensteuer unterliegen Einkünfte.
  • Rentenversicherung: Beitragsatz – 31,8 % – Arbeitsgeberanteil;
  • Sozialversicherung: Beitragsatz – 3,4 % – Arbeitsgeberanteil;
  • Arbeitslosenversicherung: Beitragssatz – 1,8 % – Arbeitsgeberanteil;
  • Unfallversicherung: Beitragsätze – 0,66 – 13,6 % (risikoabhängig) – Arbeitsgeberanteil.

Besteuerungsgrundlage für die Rentenversicherung, Sozialversicherung, Arbeitslosenversicherung und Unfallversicherung sind Gesamtausgaben für den Personalaufwand.

Igor Shelemey
Tel.: 02632 98 99 68
Handy: 0174 2692064
igor-shelemey@web.de

Why to invest in Ukraine through Cyprus?

Many clients ask me as a lawyer a direct question what jurisdiction is the best one to invest in Ukraine. Can you give us a feel for the percentage of investors into Ukraine that use Cyprus-based vehicles? Of course, every case is a unique one. But let’s see together. According to the official Ukrainian statistics, the growth of foreign direct investment in 2005 hit a record high of $7.328 bln, which is 4.7 times more than in 2004.

© Arthur A. Nitsevych

International law offices & Veritas Legal
advisers
Odessa – Kiev – Nikolaev – Ilyichevsk

March 2007

Why to invest in Ukraine through Cyprus?

Many clients ask me as a lawyer a direct question what jurisdiction is the best one to invest in Ukraine. Can you give us a feel for the percentage of investors into Ukraine that use Cyprus-based vehicles? Of course, every case is a unique one. But let’s see together. According to the official Ukrainian statistics, the growth of foreign direct investment in 2005 hit a record high of $7.328 bln, which is 4.7 times more than in 2004. As of 1 July 2006, according to the Ukrainian Statistics Committee, the largest share of FDI to Ukraine came from Germany ($5.503 bln or 29.9%), Cyprus ($2.042 bln or 11.1%), Austria ($1.506 bln or 8.2%), UK ($1.435 bln or 7.8%) and USA ($1.322 or 7.2%).

Looking at our long experience in international tax planning and Cyprus' numerous advantages we can declare Cyprus compares favourably with many other similar locations. What makes us believe so? Strategic geographic location, excellent commercial infrastructure, political stability, favourable tax incentives, high standard of living and European lifestyle have contributed towards its development as an important financial cent.

  1. Stability

    Though located in the often stormy Middle East area, Cyprus is a centre of democracy and stability where businessmen from all over the world may run their affairs in a harmonious and friendly environment. The rule of law is a well-protected principle.

  2. Geographic Location

    Cyprus has one of the most strategic geographic locations in the world. The island is situated at the crossroads of Europe, Asia and Africa. In addition, the Island's time zone is convenient to all other regional centres and this is enhanced by its excellent telecommunication links. Cyprus is also within easy flying time of the rest of Europe and the Middle East. Above all visitors from more severe climates will enjoy the excellent weather conditions prevailing in Cyprus.

  3. Respectability

    The policy of the authorities has been directed to assist and promote foreign participation in the island’s economy. But this has not in any way operated to affect their respectability or good standing in the eyes of the international business community. Indeed, the authorities managed to succeed in maintaining a balance.

  4. Commercial Infrastructure

    The commercial infrastructure of Cyprus, well developed, lends itself ideally to all forms of business activities. In particular it helps with a civilized environment, pleasant working conditions, comfortable accommodation and comparatively low operational costs and living expenses. A wide range of professional services are offered, including law and accounting firms.

    The English legal system, practice and procedures, which Cyprus acquired during the time it was a British colony, have continued after independence despite the subsequent promulgation of further legislation. Moreover, although the official languages of the Republic are Greek and Turkish, English is spoken by the majority of the population.

    The Island's telecommunication system compares favourably with the highest international standards and direct dialing telephone connections are available to all world centres.

  5. International Relations

    The Cypriot authorities are firmly committed to forging and maintaining strong bonds of friendship with all neighbouring states and with countries further abroad. In addition, the official policy is one of fostering and promoting good relations with all international organizations.

    Cyprus is a member of numerous international associations, including the United Nations, the Council of Europe, the Commonwealth, and the Non-Aligned Movement.

    So, now having got an understanding on the political and business background let’s have a look at the tax framework. New legislation has been effective from January 1st 2003 and regulates the tax treatment of Cyprus companies. The new legislation aims to conform to European Union law and the European Union code of conduct and abide by Cyprus' commitment to the Organization of Economic Cooperation and Development (OECD) to eliminate harmful tax practices.

The main features of the current tax system are the following:

  • The taxable profit of all Cypriot companies is taxed at the rate of 10%.

  • Dividend income from abroad to Cyprus is wholly exempt from corporation tax provided the direct holding is at least one per cent (1%) of the share capital of the overseas company. This exemption will not apply if the company paying the dividend engages in more than fifty per cent (50%) of its activities in producing investment income and the foreign tax burden on the income of the company paying the dividends is substantially lower than that in Cyprus.

  • There is no withholding tax on the payment of dividends, interest and royalties from Cyprus to non-residents of Cyprus.

  • In order to conform to the European Union, the new tax legislation adopts the appropriate European Union directive which enables reorganizations, mergers, acquisitions and amalgamations of companies without tax implications.

  • Dividend income and profits from the sale of securities and shares are exempt from corporation tax.

  • With 2 exceptions, profits from a permanent establishment abroad are exempt from corporation tax.

  • The treaties for the avoidance of double taxation which Cyprus has signed remain in force. There are currently 34 such treaties (please, see the table 1). The existence of these treaties, combined with the low tax paid by a Cyprus company offer the possibilities for effective international tax planning as we will indicate in the examples below. The main objective of the double tax treaties is to avoid the double taxation of income earned in any of the two contracting countries. This is done through the tax sparing provisions whereby tax is credited against the tax that must be paid in the contracting state. The treaties also provide for reduced withholding taxes for dividends, interest and royalties.

The aim in Cyprus has always been to create not a tax haven but a tax incentive country. Therefore, regulations have always been adhered to. Permission from the Central Bank is necessary before a company can be established while at the end of each fiscal year audited accounts and annual returns must be submitted both to the Central Bank and to the tax authorities. Having said that, applications for the incorporation of a Cyprus company are processed efficiently by the Central Bank and the Registrar of Companies and the procedure can be completed in about a week. Local law firms and accountancy firms can provide nominee services for the administration of the company thus securing anonymity for the actual owner, where this is required. Instructions for the incorporation of a company can be given by fax or e-mail and the presence of the owner in Cyprus is not required.

With EU accession in May 2004 the status of a Cyprus holding company is enhanced further as it enjoys the reputation and privileges attached to a European company.

Foreign investors require from a holding company several things:

  • The holding company must extract value from the operating company by way of dividends or gains preferably free from withholding tax and capital gains tax, by means of a tax treaty or under the EU Parent/Subsidiary Directive and the domestic laws of the holding company jurisdiction must exempt such dividends and capital gains from local tax.

  • It should be possible to take dividends out of the holding company without giving rise to any charge to tax in the holding company jurisdiction.

All these requirements are met in Cyprus, that’s why Cyprus is used as the location for the ultimate holding company and that’s why Cyprus is particularly suitable for investment vehicles with many countries.

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What about the relations between Cyprus and Ukraine? If you have a look at the list of international documents protecting Cyprus investors in Ukraine I believe there will be no doubts:

  • Convention on Settlement of investment disputes between states and foreign entities (effective as of 18.05.1965),

  • Partnership and cooperation agreement between the EU and Ukraine (effective as of 01.03.1998),

  • Treaty between the Government of the USSR and the Government of the Republic of Cyprus of the avoidance of double taxation with respect to taxes on income and estate (effective as of 26.08.83),

  • Agreement between Ukraine and Cyprus on legal assistance in civil cases (effective as of 18.03.2006),

  • Trade agreement between the Government of Ukraine and the Government of Cyprus (effective as of 21.02.2000).

Cyprus has always been one of the main sources of investments into Ukraine. Generally the advantages may be distributed into several groups:

  • protection of assets,

  • tax optimization,

  • tax free gains on disposal.

To be vivid we can illustrate the table 2 and 3. The highest level of confidentiality is provided with the use of another offshore structure. Royalties, dividends and interest paid from Ukraine to Cyprus are not taxed at all. Mergers and acquisitions may be carried out without taxes.

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All the foregoing reasons make Cyprus a highly attractive jurisdiction for investment into Ukraine. Of course, every scheme is personal, so one must be careful building up his own business affairs and would better ask assistance from a professional in the sphere of tax planning.

The Author

Arthur A. Nitsevych, attorney-at-law within International law offices & Veritas legal advisers from Ukraine focused on shipping and commercial law mostly.


Arthur A. Nitsevych, Attorney-at-law (Odessa Kiev Nikolaev):
„Investors can feel more secure in Ukraine“.

Born in 1971. He was educated at the Odessa State University
as a philologist (English language and literature). Then he continued his education
at the Odessa State Legal Academy. He also graduated from the Interregional Academy
of Personnel Management in Kyiv and subsequently obtained a Degree of Master of
science in accounting.
He has got 10 years of practical experience.
Fluent
in English and Spainish.
His areas of practice include investment legislation
and settlement of tax disputes, maritime law.

International law offices & Veritas Legal advisers
15/6, Uspenska St, 65014,
Odessa, Ukraine
Tel. +38 048 7155855
Fax +38 0482 496925
Internet: http://www.murs.com.ua

First Development Policy Loan for Ukraine

The World Bank approved the First Development Policy Loan for Ukraine in the amount of US$ 251.26 million. The Board also discussed a Progress Report on the implementation of Ukraine’s Country Assistance Strategy. The meeting follows approval in recent weeks of two further loans in education (US$ 86 million) and energy (US$ 106 million), and release of the second tranche of the Second Programmatic Adjustment (PAL-2) loan (US$ 172 million).

„The Ukrainian government has set out an ambitious agenda designed to transform the economic and social development of the country, and to enhance Ukraine’s role in the global economy,“ says Paul Bermingham, World Bank Director for Ukraine, Belarus and Moldova. „We in the World Bank have adapted our programs to assist the government to achieve these goals. We now see a real opportunity to pursue the fundamental reforms needed to secure for Ukraine sustained strong growth and poverty reduction. Working with our development partners, we are responding quickly with a larger package of loans and advice designed to take advantage of this opportunity.“

Development policy (previously known as „adjustment“) lending will continue to be at the center of the program, with its focus on key policy and institutional reforms. The Development Policy Loan (DPL-1) is the first in a planned series of three annual loans designed to help the government translate its objectives into a sequenced and prioritized program of actions. It is a successor to the PAL program, for which the Bank released the second and final tranche of US$172.5 million on June 21, 2005. The DPL program seeks to integrate government and donor activities under three broad themes to improve public governance: investment climate, public administration and public finance management, and social inclusion.

„The first Development Policy Loan approved today supports priority reforms in key social and economic elements of the government’s ‚Meeting the People‘ program,“ says Mark Davis, Program Team Leader. „It focuses on the medium-term institutional and policy changes needed to sustain growth and deepen integration in the global economy, and is consistent with and supportive of the EU-Ukraine Action Plan.“

The Progress Report documents progress in implementing the Bank’s Country Assistance Strategy for the period 2004-2007, and sets out how the strategy will be adapted to meet evolving needs and opportunities during the next two years. While the overall goals remain broadly unchanged, implementation is planned to accelerate to take advantage of the opportunity created by the ambitious reform program of the new administration.

The lending program for Ukraine will have two main dimensions. The first is a new series of annual, fast-disbursing development policy loans (the successor to the PAL program) designed to support a comprehensive set of policy and institutional reforms. The areas of reform include macroeconomic management, investment climate, public administration, public finance management, rural development, and social services. The second dimension is a series of specific investment projects. These will include areas such as energy, transport, financial sector development, environmental protection, social protection, health, and education. The program will also include an extensive analytic and advisory services component.

„Over the next two years, the Bank has an available lending envelope of up to US$2 billion,“ notes Dusan Vujovic, World Bank Country Manager for Ukraine. „As we implement our program, we intend to work with the government to put in place a framework to measure the results of what we do, and to coordinate our efforts with those of other donors and international organizations.“

Real estate in Ukraine (land issues)

© Arthur A. Nitsevych

International law offices & Veritas Legal advisers
Odessa – Kiev – Nikolaev – Ilyichevsk

February 3, 2005

1 General overview

On October 25, 2001 the Parliament of Ukraine adopted a new land Code which came into effect on January 1, 2002. In keeping with the new Land Code land is finally deemed as an object of private ownership rights. So, landowners have the right to sell, exchange, donate or pledge their plots.

Finally investors can feel more secure. First, now they can deal with actual owners of land. Second, land, unlike movable property, is extremely difficult to hide or move. So, foreign investors are also able to receive something of real value if their Ukrainian counterparts fail to fulfill their contractual obligations.

No doubt, the adoption of the above Code together with other vital performances gave a strike to foreign investment into Ukraine. For instance, on May 17, 2004 Bunge Limited, an integrated, global agribusiness and food company, founded in 1818 and headquartered in White Plains, New York, announced that its European operating arm, Bunge Europe, had entered into a 50-50 joint venture with Estron Corporation to build an oilseed crushing plant in the port of Ilyichevsk, Ukraine. The new plant is adjacent to the grain export terminal owned by Estron Corporation. The plant's projected crushing capacity is 600,000 tons per year, and it is expected to be operational in early 2005. The plant, as a client of the terminal, will have access to the terminal's expanded capacity of 240,000 tons of storage space with two panamax vessel loaders. Who would think it is possible if the land matter cannot be solved?

The most progressive innovation of the above Code is the concept of private ownership of land. Under the previous Code, private land ownership was limited to Ukrainian individuals and the land sale-purchase was permitted under very limited circumstances.

The concepts related to land use classifications and zoning are taken from the previous Code. Lands are divided into a few major categories: residential, industrial and agro-industrial. Residential land includes land plots used for construction of residential buildings within populated areas, public constructions and other structures of public use. Industrial land includes lands provided for the allocation and exploitation of principal and auxiliary buildings and structures of industrial, mining, transportation and other enterprises, including their means of access, communication networks, administrative-infrastructure buildings and other structures.

Another innovation introduced by the Code is the right to pledge (mortgage) privately owned land. However, only Ukrainian banks may act as pledgees (mortgagees), and then only if they comply with the requirements established by law.

The Code also introduces some new concepts in land relations: landed servitudes and good-neighborliness. As for landed servitudes, they may be given to a landowner or user with regard to the limited free or paid use of another land plot. Under the concept of good-neighborliness, land owners and users are required to use land in accordance with its designated purpose to provide the least nuisance to neighboring land plots.

2 Private Ownership and transfer limitations

Although the most progressive concept is full private ownership of land, the Land Code establishes a moratorium on the sale-purchase of agricultural lands until January 1, 2007. Also until January 1, 2015, the area of an agricultural land plot, that may be privately owned, may not exceed 100 hectares. Moreover, until January 1, 2007, land ownership and use rights cannot be contributed to the authorized fund (charter capital) of legal entities.

 

3 Nonagricultural Land

After January 1, 2002, any legal entity or individual can acquire nonagricultural land, except for beaches, roads, and strategically important state-owned lands (e.g., lands of railways, airports, pipelines, atomic energy). No significant limitations are imposed on a nonresident's ownership of nonagricultural land other than those imposed on Ukrainian residents.

 

4 Agricultural Land

The new Code strictly prohibits foreign citizens, legal entities and governments from acquiring agro-industrial lands. Lease arrangements are the only way foreign investors may get an access to agricultural land. Agricultural land inherited by foreigners must be sold within one year after the inheritance. So, agricultural land may be privately owned by legal entities and individuals, with the exception of foreigners.

Only members of farmer organizations and former members of collective agricultural enterprises enjoy the right to privatize agricultural land. However, even after January 1, 2007, agricultural land may only be sold to Ukrainian citizens with a degree in agriculture or work experience in agriculture or who conduct agricultural production activity as well as to Ukrainian legal entities engaged in such activity.

5 Rights of Nonresidents

Ukrainian citizens may acquire ownership rights to land by way of:

  1. a sale- purchase, gift, barter or other civil agreement;
  2. gratuitous transfer from state or communal ownership;
  3. privatization of land plots previously allocated to them for use;
  4. inheritance;
  5. an in-kind share to which they are legally entitled.

Foreigners may acquire non-agricultural land plots by way of:

  1. sale-purchase, gift, barter and other civil agreements;
  2. buyout of land plots on which real estate under their private ownership is located;
  3. inheritance.

However, foreign citizens may only acquire ownership rights to a non- agricultural land plot outside the limits of populated areas if they have privately-owned real estate already located on such land plot.

Foreign legal entities may acquire ownership rights to land plots of non-agricultural designation: (a) within populated areas, when the property acquisition of real estate will be improved by buildings or other objects related to the companies business activities in Ukraine; or (b) outside the limits of populated areas in the case of the acquisition of real estate.

When the moratorium on the sale of land is lifted, foreign investors will have the right to purchase the land under their privately owned production and storage facilities, provided, however such land is not designated as agricultural or other land restricted for foreign citizens and businesses.

Foreigners are also entitled to participate in the privatization of land. However, sales of state-owned land to foreigners must be carried out by the Cabinet of Ministers and agreed to by the Parliament. As for municipal land, sales to foreigners must be carried out by the appropriate local Council and agreed to by the Cabinet.

Further, the sale of state-owned and municipal land is allowed on condition that the foreigner registers a permanent representative office in Ukraine. Foreign countries desiring to acquire state owned or municipal land (e.g. for embassies and consulates) must apply to the Cabinet of Ministers.

To avoid the above long procedure we advise our clients to use a "legal maneuver". First, foreign entities create a Ukrainian legal entity A. Then, the above Ukrainian resident creates another Ukrainian legal entity B which can purchase land plots without any limitations as it is not considered as a foreign company. If desired, after the purchase of land it's possible to change shareholders in B on foreign members.

6 Right to use the land

The Land Code permits two basic rights to land use: (i) the right to permanent use; and (ii) lease rights. The right to permanent use gives the right holder the right to possess and use a land plot under state or communal ownership without an expiration term. Unfortunately, this right may only be acquired by enterprises, institutions and organizations, which are related to state or communal ownership.

Fortunately, the right to lease plots of land is a viable alternative for foreign investors, international organizations and foreign governments. Under the Land Code, leases may be other short-term (no more than five years) or long-term (no more than50 years). The Land Code also allows the lessee to sublet the land plot upon consent from the lesser. All other issues in connection with the lease of land are regulated by law of Ukraine.

7 State registration

Article 210 of the Civil Code effective as of 1 January, 2004 stipulates a general rule that an agreement on real estate shall be registered. An agreement subject to state registration is considered valid as of the moment of state registration that is performed usually by a notary. Registration of title to real estate is carried by the State Registry of rights to Real estate and their limitations.

8 Conclusion

The new Land Code, which came into effect on 1 January 2002, represents a fundamental change to Ukrainian real estate law. It introduces new rights to private land ownership and use as well as the principle that land can be freely bought and sold. The adoption of the Land Code is a significant step forward in Ukraine's efforts to bring its legislation into compliance with international standards. Although the Land Code contains a number of deficiencies and discrepancies of a mostly technical character, it introduces a number of important concepts and principles. These will now govern legal relations in the field of land ownership and related rights, such as the private ownership of land in Ukraine, the right of foreign citizens and legal entities to own certain types of land in Ukraine, servitudes and rights of third parties.

The Code may be considered a revolutionary legal enactment that will lead to the development of a functioning land market in which transactions involving the alienation of land will eventually become commonplace. But, at this stage, the Code is mainly viewed as a basic legal framework for land ownership, with implementation to a large extent dependent on supplementary legal enactments to be adopted. Some steps in this trend have been already made (for example, on December 11, 2003 the Law On land appraisal was adopted).

The Author

Arthur A. Nitsevych, attorney-at-law within International law offices & Veritas legal advisers from Ukraine focused on shipping and commercial law mostly.


Arthur A. Nitsevych, Attorney-at-law (Odessa Kiev Nikolaev):
„Investors can feel more secure in Ukraine“.

Born in 1971. He was educated at the Odessa State University
as a philologist (English language and literature). Then he continued his education
at the Odessa State Legal Academy. He also graduated from the Interregional Academy
of Personnel Management in Kyiv and subsequently obtained a Degree of Master of
science in accounting.
He has got 10 years of practical experience.
Fluent
in English and Spainish.
His areas of practice include investment legislation
and settlement of tax disputes, maritime law.

International law offices & Veritas Legal advisers
15/6, Uspenska St, 65014,
Odessa, Ukraine
Tel. +38 048 7155855
Fax +38 0482 496925
Internet: http://www.murs.com.ua