RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/UKR/69
23 July 1999
(99-3112)
Working Party on the
Accession of UkraineOriginal:  English
ACCESSION OF UKRAINE
Analysis on Foreign Investme nt Legislation in Ukraine
The following information concerning the foreig n investment legislation in Ukraine has been
received from the Governmental Commission on Ukraine's Accession to WTO.
_______________
Ukraine has adopted many legal acts concerning foreign investment. Thus, it is not always
easy to understand how it is regulated in Ukraine.
This article is to answer some frequently asked questions on the subject. Its objective is also
to give a clear outline of the Ukrainian legislation on foreign investment.
The main legal act which regulates foreign inve stment issues in Ukraine is the Law “On the
Regime of Foreign Investment,” No.93/96, of 19 March 1996.
1. The basic principles of foreign investment regime in Ukraine.
Who can invest?  Are foreign investors discriminated as compared to domestic
investors? Are there any privileges or special benefits (such as tax concessions) for foreign
investors on the basis of country of their origin, or the form and field of investment?
Every foreigner may invest in the territory of Ukraine. There is no discrimination of foreign
investors with one exception. It concerns land ownership. For more detailed information see section 5below.
Generally, the legal situation concerning foreign investment in Ukraine is based upon the Law
“On Foreign Investment Regime,” N o.93/96, of 19 March 1996. The Law contains:
(a) a list of government guarantees of foreign investment activity (see the next
subsection);
(b) certain restrictions of property rights of foreign investors (see section 5 below for
more detailed information).
The Law also provides that in some cases foreign (as well as domestic) investors may enjoy a
privileged regime of investment activity.
In particular, according to Article 7 of the Law “On Foreign Investment Regime”, such
privileged treatment is available in the following areas of activity:
(a)  development of priority sectors of economy;WT/ACC/UKR/69
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(b)  social development;
(c)  development of particular areas of Ukraine.
Also, a possible restriction of foreign investment  appears in Article 7, Item 3 of the Law “On
Foreign Investment Regime”. In general, the Law establishes a rule that foreign investments enjoynational treatment. However, Article 7, Item 3, provides that laws of Ukraine may prohibit or restrict
foreign investment in particular “territories” of Ukraine.
2. Legal guarantees of foreign investment in Ukraine.
What legal guarantees of foreign investment exist in Ukraine or, in other words, how is
foreign investment protected in Ukraine?  Ho w can a foreign investment be withdrawn from
Ukraine?
The foreign investment regime in Ukraine is based on a system of legal guarantees which
provide for satisfactory investment conditions. The guarantees are included in the Law “On Foreign
Investment Activity” (Articles 8-13). The system of state guarantees of foreign investment can bedivided into five major groups. These are:
(a) Guarantees against changes in Ukrainian legislation.
Article 8 of the Law “On Foreign Investment Regime” provides that in the event of Ukraine
altering the range or the nature of the guarantees of foreign investment, “upon the request of foreign
investor the former system of guarantees will continue to be applied to him/her in the course of 10
years after such alterations were actually made”.
(b) Guarantees against expropriation.
Article 9 of the Law “On Foreign Investment Regi me” provides that foreign investment is not
subject to nationalization. Foreign investment also may not be requisitioned except in cases of natural
disaster, epidemics, crashes, episootics. It is the Cabinet of Ministers that authorizes particular state
bodies to issue orders of requisition of foreign investment. Also, the value of foreign investment that
has been requisitioned under such circumstances must be repaid by Ukraine. The foreign investor also
has the right to complain in the court either the decision on requisition or the conditions of repaymentof the value of the property lost by the foreign investor as a result of such requisition. The value of
property lost must be assessed on the basis of current market price that exist at the moment of
requisition or/and by a competent audit firm;
(c) Guarantee of reimbursement of damages of foreign investor, caused by illicit acts of
state bodies.
Foreign investors also have the right to a due reparation of all losses it suffers as a result of
the failure of the competent Ukrainian authorities or officials to fulfil the obligations of Ukraine to the
foreign investors (Article 10). Like in cases of requisition, all relevant losses are assessed on the basisof current market prices at the moment of actual ex ecution of the relevant decision of the competent
Ukrainian authority or the officials thereof and/or by a competent audit firm. The reparation of losses
must be expedient, adequate and efficient. From the moment when the foreign investor receives the
right to a reparation up to the moment such reparation is actually paid interest is payable at the
amount of LIBOR interest rates;WT/ACC/UKR/69
Page 3
(d) Guarantees concerning the withdrawal of investment.
When the foreign investor so wishes, it has th e right to cease its investment activity. In this
case all the property initially invested in the territor y of Ukraine in any form must be returned to it no
later than “six months after the day the investment activity ceased”, either in “the natural form or in
the currency of investment” (Article 11). Such transaction is exempt from the state fee. The profit
raised as a result of such investment activity must also be returned, either in the monetary or
commodity form. The value of such profit is assessed on the basis of real market prices that exist at
the moment the investment activity ceases. This provision of the law, however, ends with the
following clause : “if not provided otherwise in Uk rainian laws or international agreements, Ukraine
is a party to”.
(e) Guarantees concerning the transfer of profit, income and other funds.
After all taxes, fees and other obligatory payments are made, the foreign investors are
guaranteed unimpeded and expedient transfer abroad of all the profits, income and other money
acquired legally as a result of foreign investment activity. The National Bank of Ukraine is authorizedto establish the procedure for the transfer of such funds (Article 12).
The guarantees listed above are granted to all foreign investors, with no discrimination on the
basis of state of origin, form or field of investment.
3. Making and registration of foreign investment.
(a) Bringing of foreign investment.
Basically, there are two major forms of investment. These are:
monetary investment;
equipment, intellectual property, know-how, services, corporate rights, etc.
(i) Bringing of foreign investment in monetary form.
As to monetary form of investment the situation is as follows:
The main legal act that regulates bank transfers in Ukraine is the “Instruction On Bank
Settlement of Debts in Ukraine”, approved by the Resolution No.204 of the National Bank of
2 August 1996. The Instruction does not establish any restrictions of the amount of money transferred
through bank institutions from abroad. General analysis of Ukrainian legislation on this matter shows
that the amount of foreign investment in bank transfers is not restricted.
As to monetary investment in cash, special regime of Customs Clearance applies only to
foreign currency in cash. It must be cleared through the Customs. According to the “Procedure of
Bringing Currency Across the Customs Border of Ukraine”, approved by Regulation of the National
Bank and State Customs Committee of Ukrain e  No.19029/381 of 14 March 1993, Sub-items 3.1.13 –
3.1.19 (as amended), foreign currency in cash can be brought into Ukraine without Customs
declaration if its total amount is no more than the equivalent of US$ 1000. In case if the total sum is
more than US$ 1000, but less than US$ 10 000, it must be declared. In case if the sum is more than 10
000, but less than US$ 50 000, the importer has to indicate the source of origin of the money as well
as its address and (if the money is intended for a company, employing this person) the title andaddress of the relevant company. Sums, exceeding US$ 50 000 cannot be brought across the border of
Ukraine in cash, unless the importer has a special permission from the National Bank of Ukraine.WT/ACC/UKR/69
Page 4
(ii) Bringing of foreign investment in all other forms.
Investment brought into the Customs territory  of Ukraine in other forms must be cleared
through the customs like all other objects. The only difference is as follows:
Foreign investment in non-monetary form is exempt from VAT and import duty in case if it is
to be incorporated into the capital of an enterprise (Item 1 of Article 18 of the Law “On Foreign
Investment Regime” No.93/96, of 19 March 1996. In su ch case instead of paying the VAT and import
duty, the importer grants to the Customs officials a promissory note, which is valid for 30 days
thereafter. During this term the importer has to incorporate the investment and obtain a relevant stamp
from the Local State Tax Authority upon the appropriate copy of the promissory note (Item 3 ofArticle 18 of the same Law). In this case the importer is exempt from the VAT and import duty.
(b) Registration of foreign investment
(i) Does foreign investment have to be registered? Why the registration is
necessary?
(ii) What is required to register a foreign investment?(iii) Is there any difference in the procedure of registration of direct and portfolio
investment?
(iv) On what grounds may the registration authority refuse to register a foreign
investment?
Do foreign investments have to be registered ? What is required to register a foreign
investment in Ukraine? On what grounds may th e relevant state authority refuse to register a
foreign investment?
 (i) The Law “On the Regime of Foreig n Investment,” No.93/96, of 19 March 1996
obliges foreign investors to register their investment three days after an investment
was actually made. If the relevant foreign investor fails to do so, no governmentguarantees of foreign investment shall be applied to this particular investment.
 (ii) According to the Law “On Foreign Investment Regime” registration of foreign
investment must follow the procedure  established in the Regulation “On the
Procedure of State Registration of Foreign Investment,” approved by the Resolutionof the Cabinet of Ministers of Ukraine No.928, of 7 August 1996. According to the
Regulation, only oblast local state administrations, city administrations of Kiev and
Sevastopol and the Council of Ministers of the Autonomous Republic of Crimea are
authorized to register a foreign investment. The list of documents required to register
a foreign investment, which is contained in the Regulation, shows that foreigninvestors are required no more documents than are necessary for due procedure of
registration. The documents required are:
- document, notifying the relevant authorities that a foreign investment has been actually made.
Its sample form is contained in Addendum 1 to the Regulation. The document mustinclude information on:
-I n v e s t o rWT/ACC/UKR/69
Page 5
- Type of investment (convertible currency, securities, intellectual property rights, etc.
In case of reinvestment Ukrainian hrivnas are also acceptable.)
- Form of investment (capitalization, property rights to real estate etc.)
- Object of investment
- Amount of foreign investment- Period of functioning of foreign investment
The investor must fill in three copies of the document. Each copy of the document must bear
a mark of the relevant local office of the State Tax Authority, certifying that the investment has been
made. After the registration the first copy is given to the applicant, the second is sent by mail to the
Ministry of Finance on the day of registration, the third copy is retained by the registering state
authority;
- document, certifying the form, in which the investment has been made (those may be
incorporation documents, concession agreements, contracts of production co-operation etc.);
- documents, certifying the value of the foreign investment (assessment acts, etc.);- document, certifying that the applicant has paid the registration fee (a payment order to the
relevant bank). As a matter of information, the registration fee is 20 minimum incomes, which
is UAH 340.
(iii) Ukrainian legislation does not establish any special registration regime for any of the types of
investment made by foreign legal entities and natural persons (direct investment and portfolio
investment). In any case, when a direct investment is registered, the process of such registration is not
the same as the registration of the relevant enterprise with foreign investment.
(iv) The other question that may arise as concerns the registration of a foreign investment is on
what grounds may the registration authority refuse to register a foreign investment? Article 14 of the
Law “On Foreign Investment Regime”  and Item 9 of the Regulation “On the Procedure of State
Registration of Foreign Investment” establish two cases when the competent state authority may
refuse to register a foreign investment:
- When making such a foreign investment contravenes the acting legislation of Ukraine;- When the documents, presented by the applicant, do not meet the requirements of the
Regulation. In the other words, an investment is not registered unless all the required
information is submitted to the competent registering authority. In this case, however, the
application can be presented a second time.
Both the Law “On Foreign Investment Regime” and the Regulations “On the Procedure of
State Registration of Foreign Investments” empathize that “the competent state authority may not
refuse to register a investment on the ground of its inexpedience”. In any case, a refusal to register a
foreign investment must be stated in writing and the refusal may be referred to a court.
4. Special cases of investment regime in Ukraine.
Are there “special cases” of investment regime in Ukraine?  What are such special cases?
Are there free economic zones in Ukraine, and do foreign investors enjoy special privileges in suchzones?
According to Article 7 of Law “On Foreign Investment Regime”, foreign investors, who
invest in a sector of economy, a social program or an area declared a “priority”, enjoy a specialWT/ACC/UKR/69
Page 6
privileged regime in their investment activities. Specifically, there are by now two cases where
investors (both foreign and domestic) enjoy such special regime. These are:
- Automobile manufacturing industry (a “priority sector of economy”);
- Special (free) economic zones (a “priority area”)
(a) Automobile industry
In automobile manufacturing industry, the priv ileges are as follows (Law “On Stimulating
Production of Automobiles in Ukrain e” No.535/97, of 19 September 1997):
(i) Import and/or export duty privileges;
Imported products necessary for construction of automobile factories, belonging to enterprises
with qualified foreign investment, or for produc tion thereat, are exempt from import duty (this
exemption is valid until 1 January 2008). The list of such imported products is established by the
Cabinet of Ministers. In other words, the exem ption applies only to products “approved” by the
Cabinet of Ministers.
(ii) Tax privileges at the customs (VAT)
Products, mentioned in the previous paragraph, are not subject to VAT when they cross the
Ukrainian border. This exemption also operates until 1 January 2008. It should be noted that this
exemption applies only to imported products “approved” by the Cabinet of Ministers.
(iii) Internal tax privileges
- VAT exemption on automobiles, produced by enterprises containing US$ 150 million
or more of foreign investment in initial capitalization.
All cars, produced by enterprises with “qualified” foreign investment, can be sold
free of VAT.
- Land tax exemption.The land, occupied by enterprises enjoying qualified investment, is exempt from land tax. It
should be noted, however, that this exemption is not absolute. The quantity of land, exempt from the
land tax, is calculated on the basis of the following investment ratios: US$ 400 000 of foreign
investment in an automobile enterprise as an init ial capitalization entitle the relevant joint venture to
claim an exemption of 1 hectare (10000 sq. m.) of land from the land tax. That means, for example,
that the “Autozaz-Daewoo” joint venture, which cont ains a foreign investment of  US$ 150 million as
an initial capitalization, is entitled to exemption of 375 hectares of land from land tax.
- exemption from company income tax.According to Article 2 of the Law “On Stimulating Automobile Production in Ukraine”,
automobile enterprises with foreign investment enjoy a privileged regime of company income
taxation. According to this regime, the following special rules apply:
- profit and gross expenses may not be calculated until the end of the year.
- profits and gross expenses are subject to indexation based on the current inflation
rate.WT/ACC/UKR/69
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- The amount of annual tax due is lower depending on the amount of money reinvested
or used to pay interest and/or the principal debt under government loans.
The Law “On Stimulating Production of Automobiles in Ukraine” also sets six conditions
necessary to qualify for the above privileges:
- investment must be in a monetary form for the amount of US$ 150 million, made as a
contribution to the capital of an automobile-manufacturing enterprise;
- investment must be made in accordance with an investment project approved by the
Cabinet of Ministers.
- investor must not require payment of royalties for utility designs of automobiles or
technologies used for the manufacture of automobiles;
- foreign investors must reinvest the income raised during the manufacturing activity of
an enterprise during the period of the privileges (until 1 January 2008);
- the number of workers employed by an enterprise at the beginning of the investment
project must not be reduced during the period of the privileges;
- during the period of the privileges (from 1 January 1998 to 1 January 2008) investors
have to increase the percentage of Ukrainian workers in an automobile enterprise to
90 per cent and arrange for  “localization of the production process”; in the other
words, the investors have to ensure the production of at least 70 per cent of all spare
parts of an automobile in the territory of Ukraine with at least 90 per cent of theworkers being the citizens of Ukraine.
In case if an investor’s failing to comply at least with one of these  requirements, the
investment ceases to be privileged and investor has to pay all taxes and duties, payable if the
investment were not privileged.
(b) Free economic zones.
The concept of a “free economic zone” in the territory of Ukraine first appeared on
13 October 1992, when the Supreme Rada adopted Law “On the General Principles of Creation and
Functioning of Special (Free) Economic Zones” No.2673-XII. The Law provides that “favorable
customs environment and regime of customs taxation are established in a free economic zone”(Article 12). It also provides that such favorable regime may include “privileged regime of taxation,
specific monetary regime, bank and credit system, system of loans and insurance, conditions of
particular payments and system of government investment” (Article 12). In other words, this law
permits the creation of free economic zones and attempts to give a definition of a free economic zone.
The first free economic zone was created in June, 1994, when the Cabinet of Ministers approved theResolution “On the Economic and Technological Experiment in the Brody rayon of the Lvov Oblast”
No.396. As it is obvious from the title of the Resolution, the territory of the new zone is the Brody
district in the north of the Lviv region. This free economic zone was established for 5 years (until
1999), but the period could be prolonged if the development is determined as “satisfactory” by the
Cabinet of Ministers (Section 30 of the Regulation “On the Conditions of Economic andTechnological Experiment in the Brody Rayon of the Lviv Oblast and the Mechanism of the
Territorial Innovation Center ”Brody”, approved by  the above-mentioned Resolution of the Cabinet of
Ministers No.396). As to the foreign investment regime, the only peculiarity relates to the property
rights of foreign investors: certain imported goods, the list of which is approved by the special
administration of the free economic zone, are exempt  from import duty. This exemption continues as
long as the free economic zone retains its status. No export duty exemptions or tax concessions were
established in this free economic zone.WT/ACC/UKR/69
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The second free economic zone was established in the “Sivash” area. According to Law
No.65/96 “On Some Issues of Currency Regulation and Taxation of Subjects of the Experimental
Zone “Sivash” of 23 February 1996, raw materials, equipment and appliances (except for excisable
goods – automobiles, oil products, etc.), imported into Ukraine by companies, implementing
investment projects registered by the Cabinet of Ministers, in the territory of the “Sivash” freeeconomic zone, are exempt from import duty and VAT. Also, the companies registered as tax-payers
in the “Sivash” free economic zone pay only 50 per cent of the established company tax, if they
reinvest such funds in the respective investment projects.
The third and fourth (and by now the last) free economic zones are “Donetsk” and “Azov”
(they are both located in the Donestk region of Ukraine). The Presidential Decree “On Special
Economic Zones and Special Regime of Foreign Investment Activity in the Donestk Oblast”No.650/98, of 18 June 1998  establishes these economic zones for 60 years; it also sets up separate
territories of priority development within these zones (for terms of 30 years). Enterprises, established
within the free economic zones, enjoy special busin ess privileges; within the priority development
territories they also enjoy special investment privileges.
All enterprises, located in on e of the two special economic zones, enjoy special taxation
privileges. These include (Item 19 of the Decree No.650/98):
- The enterprises pay company income tax at two thirds of the generally established rate. This
privilege does not apply to income raised from investments into government securities, issuedby local administration of the free economic zone.
- The enterprises do not pay amounts due to the State Innovation Fund and Chernobyl Fund.
The two free economic zones are at the same time areas with special customs advantages
(Item 12 of the Decree No.650/98). The advantages include (items 13, 14 of the Decree No.650/98):
- if goods are brought from out of the customs territory of Ukraine, they are exempt from
import duty and VAT. The rule does not apply to excisable goods;
- if the goods, mentioned in the previous paragraph, are later brought into the customs territory
of Ukraine, they are taxed as if they were imported into Ukraine;
- if goods, produced (or sufficiently reprocessed) in the area with the special customs regime,
are brought into the customs territory of Ukraine, they are taxed, as if they were domestic
products;
- if goods, produced (or sufficiently reprocessed) in the area with the special customs regime,
are brought out of Ukraine, they are exempt from export duty and VAT, and are taxed with
VAT at zero rate;
- if goods, previously imported into the areas with special customs regime, are later brought out
of Ukraine, they are exempt from export duty, excise and VAT;
- if goods are brought from the customs territory of Ukraine into the areas with the special
customs regime, they are taxed as if they were in the customs territory of Ukraine;
- in goods are transited through the areas with the special customs regime, they are taxed in
accordance with the Ukrainian legislation.
Additionally, in the Azov free economic zone, there are two more customs advantages:
- products may be kept in the territory of this area with the special customs regime for the term
of unlimited duration.
- the customs value of all products, brought into the area with the special customs regime from
out of the Customs territory of Ukraine and later brought out of the area with the specialWT/ACC/UKR/69
Page 9
customs regime, does not include the value of storage, sorting, packaging, etc. Such services
are exempt from the VAT.
It should be noted also that imports and exports from and to these two free economic zones
are not subject to licensing requirements or quotas, if the exported (imported) products are to be usedin the production process within the free economic zones.
The special investment privileges include (Items 14, 15 and 20 of the Decree No.650/98):
- Export and import duty exemptions on equipment and raw materials. The exemptions do not
apply to excisable goods and are valid for the term of the investment project, but in any case
no longer than five years.
- Company income tax exemptions of enterprises, established in one of the priority
development territories. This exemption applies only to enterprises set up within investment
projects, approved by the Council on Special Economic Zones and Special Regime of
Investment Activity. The latter is set up on the basis of the same law. The exemptions apply
only to enterprises with foreign investments of USD 1 million or more. They exist for threeears. For the subsequent three years the income of such enterprises is taxed at 50 per cent of
the tax rate only.
- exemption from obligatory payments to the State Innovation Fund. The relevant enterprises
pay only half of amount due to the Chernobyl Fund. These two privileges apply only to
enterprises, where at least 50 per cent of the employees are former workers of the coal miningindustry. It is valid until 1 January 2009.
-  amounts of foreign investment are not included in the gross income of enterprises, located in
the territory of the two free economic zones. This exemption applies only to investments,
made in accordance with investment projects approved by the Council on Special Economic
Zones and Special Regime of Investment Activity.  Also, products imported by enterprises,located in the two free economic zones, (except for excisable goods) are exempt from import
duties and VAT.
The only thing that is unclear about the last two free economic zones and their territories of
priority development is why enterprises, taking part in special investment projects, have to pay 50 per
cent of the charge to the Chernobyl Fund, while all the other enterprises, located in the free economic
zone, do not have to pay such charge at all.
5. Property rights of foreign investors in Ukraine.
What property rights do foreign investors enjoy in Ukraine?  In the other words, are these
rights restricted as compared to the rights of domestic investors?
Foreign natural persons and legal entities may acquire same property rights, as Ukrainians.
They are also subject to the same restrictions. There is only one exception to this general rule. It
concerns land ownership. According to Article 6 of the Land Code of Ukraine  - “foreigners and
stateless persons cannot own land plots”.
The Land Code of Ukraine, Article 52, defines “land plots” differently, depending on their
use. Namely:
- land for farming – no more than 50 hectares;
- land for households – no more than 2 hectares;
- land for orchards – no more than 0.12 hectares;
- land for yards – no more than 0.15 hectares;
- land for hey-mowing – no more than 0.1 hectares;WT/ACC/UKR/69
Page 10
- land for animal breeding – no more than 0.1 hectares;
- land for construction of a house and household buildings:
(i) in villages – 0.25 hectares;
(ii)  in cities – no more than 0.1 hectares;
- land for individual “dachas” – no more than 0.1 hectares;- land for individual garages – no more than 0.01 hectares.
Natural persons may not own land estates beyond the sizes, mentioned above, according to
Land Code, Article 6. According to Article 7 of the Land Code, Ukrainian “agricultural enterprises”
(that is, those that can engage in agricultural production according to their charters) can own land
estates of any size. “Agricultural enterprises” are former collective and state farms. It should be
remembered in any event that according to Article 13 of the Ukrainian Constitution “land, itsresources … are property of the Ukrainian people”. Although it is not expressly stated in any
Ukrainian legislation, this means that foreign legal entities cannot own large land estates.
Furthermore, Article 7, Items 5 and 6 of the Land Code also implicitly states that enterprises with
foreign investment and wholly-owned foreign enterprises can only rent land. Namely, the article states
that land can be used either temporarily or permanently by “joint ventures, international associationsand organizations, which foreign and/or Ukrainian natural persons and/or legal entities are members
to, enterprises, wholly owned by foreign investors”.
6. International agreements.
Does Ukraine have trade and investment agreements with other countries?  What are the
rights and obligations under such agreements?
All international agreements Ukraine concluded on trade and investment, can be divided into
two uneven groups: bilateral (a much larger group) and multilateral. Functionally, bilateralagreements are not only much more numerous, but also much more effective, or, in other words, they
are implemented more effectively than multilateral agreements. Among the most significant of such
bilateral agreements is the Agreement between Ukraine and the United States of America “On
Promotion and Mutual Protection of Investment ”, signed on 3 March 1994. Unfortunately, the
agreement does not establish an absolute Most-Favored-Nation (MFN) regime. According to its
Appendix, the contracting parties reserve the right to establish and maintain numerous exceptions to
the MFN regime, especially in such sectors of economy as maritime and air transport, banking,broadcasting, natural resources, etc.
As to multilateral international agreements, there are two main  international conventions
which establish standards of protection for foreign investments. These two legal acts are the
Washington Convention “On the Procedure of Settleme nt of Investment Disputes Between States and
Foreign Persons” of 1965 and the Seoul Convention “On Establishing the Multilateral Agency on
Investment Guarantees” of 1985. These conventions have been developed and are enforced under the
auspices of the International Bank of Reconstruction and Development. It should be noted, however,
that their main drawback is their ineffectiveness.WT/ACC/UKR/69
Page 11
APPENDIX
Legislative Acts on Foreign Investment in Ukraine
Many legal acts regulate foreign investment in Ukraine. The Law “On the Foreign Investment
regime” No.93/96, of 19 March 1996 takes the central position among such legal acts.
All legal acts regulating foreign investment issues can be divided into three major groups:
1. Legal acts (laws), which establish general principles and rules of foreign investment. This
group includes:
- The Law “On the Regime of Foreign Investment” No.93/96, of 19 March 1996.
- The Law “On Investment Activity” No.1560-XII,  of 18 September 1991, as amended by the
Law No.155-XII, of 10 December 1991;
- The Law “On Protection of Foreign Investments in Ukraine” No.1540a-XII, of
10 September 1991;
- The Law “On Foreign Economic Activity” No.959-XII, of 16 April 1991;
- The Law “On General Principles of Establishing and Functioning of Special (Free) Economic
Zones” No.2673-XII, of 13 October 1992.
2. Legal acts on government regulation of foreign investment.  This group includes such legal
acts as:
- “The Concept of Regulation of Investment Activity in the Context of Market Transformation
of the Economy”, approved by the Resolution of the Cabinet of Ministers of Ukraine No.384,
of 1 June 1995.
A number of Resolutions of the Cabinet of Ministers of Ukraine, approving Regulations on
specific ministries, such as Resolution No.41 approving the Regulation on the Ministry of Foreign
Economic Activity. These legal acts inter alia establish powers of this or that ministry as concerns the
state regulation of foreign investment activity.
3.  Legal acts that are not primarily “concerned” with foreign investment, but include certain
provisions applicable to foreign investment.  This group includes:
- The Civil Code of Ukraine, approved by Law of Ukrainian Soviet Socialist Republic
No.1504-06, of 18 July 1963;
- The Land Code of Ukraine, approved by Law of Ukraine No.1970-XII, of 12 December 1991;
- Law “On property” No.697-XII, of 7 February 1991;- Law “On Entrepreneurship” No.698-XII, of 7 February 1991;
- Law “On Enterprises in Ukraine” No.887-XII, of 27 March 1992;
- Law “On Companies” No.1576-XII, of 19 September 1991.
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