Article 7.
Legal Regime of Investment Activity
Except for the cases envisaged by Ukrainian laws and international agreements of Ukraine, a national regime for investment and other business activities shall be established on the territory of Ukraine.
A privileged regime of investment and other business activities may be established for individual business entities which implement investment projects with involvement of foreign investments to be realized under the state programs of development of priority branches of economy, social sphere and territories.
Ukrainian laws may determine territories where activities of foreign investors and enterprises with foreign investments are limited or forbidden proceeding from the national security requirements.
Article 8.
Guarantees against Changes in Legislation
Should the future special legislation of Ukraine on foreign investments change the guarantees of protection of foreign investments, as prescribed in Section II of this Law, then, if demanded by a foreign investor, the government guarantees to protect foreign investments indicated in this Law shall be applied during ten years period from the date such legislation takes effect.
Rights and liabilities of the parties of the Production Sharing Agreement are regulated by the legislation of Ukraine acting at the moment of signing of the Production Sharing Agreement. The above-mentioned guarantees may not be disseminated to changes in legislation in the area of defense, national security, public order security, and environmental protection. (Second part of Article 8 added by Law of Ukraine of June 08, 2000)
Article 9.
Guarantees against Compulsory Requisitions as well as Unlawful Actions of Government Bodies and their Officials
Foreign investments in Ukraine are not subject to nationalization. Government bodies are not entitled to requisition of foreign investments, except for emergency measures in case of a calamity, accident, epidemic, epizootic. The above-mentioned requisition may be enforced on the basis of decisions of bodies authorized to do so by the Cabinet of Ministers of Ukraine.
Decisions on requisition of foreign investments and compensation conditions may be appealed against in court according to Article 26 of this Law.
Article 10.
Compensation and Indemnification of Losses incurred by Foreign Investors
Foreign investors are entitled to compensation for losses, including lost benefit or moral damage incurred by them due to actions, omissions or improper fulfillment by Ukrainian government bodies or their officials of obligations required by law, with respect to a foreign investor or enterprise with foreign investments according to the legislation of Ukraine.
All expenses and losses incurred by foreign investors as a result of the actions, specified in Article 9, and in the first part of this Article, shall be indemnified on the basis of current market prices and/or substantiated estimates confirmed by an auditor or auditing firm.
Compensation payable to foreign investor should be prompt, adequate and efficient. Compensation to be paid to foreign investor due to the actions, specified in Article 9 of this Law, is calculated at the moment of termination of the right of property.
Compensation to be paid to foreign investor due to the actions, specified in the first part of this Article, is calculated at the time of actual implementation of the decision to compensate for losses. Amount of compensation is to be paid in the currency in which investments have been made, or in any other currency acceptable for the foreign investor in accordance with the effective legislation of Ukraine on foreign currency. From the moment when the right to compensation emerges and until the moment of its payment, interest is calculated on the amount of compensation according to average interest rate, at which London banks issue loans to the first-class banks in the market of European currencies (LIBOR).
Article 11.
Guarantees in Case of Termination of Investment Activity
In case of termination of investment activity, a foreign investor is entitled to recovery, not later than in six months from the moment of termination of this activity, of its investments in kind or in the invested currency in the amount of the actual contribution (with account of possible decrease in charter fund) without payment of customs duty, as well as revenues earned on these investments in terms of money or goods at the real market value at the moment of termination of investment activity, unless otherwise is established by the legislation or international agreements of Ukraine.
Article 12.
Guarantees for Remittance of Profits, Revenues and Other Assets Obtained in Connection with Foreign Investments
After paying taxes, duties and other mandatory payments, foreign investors are guaranteed the right to free and prompt remittance abroad of their profits, revenues and other assets, legally obtained in connection with foreign investments.
Procedure of remittance of profits, revenues and other assets obtained in connection with foreign investments is established by the National Bank of Ukraine.
|
