RESTRICTED  
  
WT/TPR/G/334  
15 March 2016  
(16-1483)  Page: 1/18  
Trade Policy Review Body  Original: English  
 
 TRADE POLICY REVIEW 
REPORT BY 
UKRAINE  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Ukraine 
is attached. 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trad e Policy Review Body on Ukraine. WT/TPR/G/334 • Ukraine 
 
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  Contents 
1   INTROD UCTION  .......................................................................................................... 3  
1.1   Overview .................................................................................................................. 3  
1.2   Economic Deve lopments: 2008-15 ............................................................................... 4  
2   MACROECONOMIC AND TR ADE POLICY REGIMES ........................................................ 5  
2.1   Monetary Policy ......................................................................................................... 5  
2.2   Fisca l Policy ........................................................................................................... ... 6 
2.3   Investme nt Regime ................................................................................................... 7  
2.4   Trade-Related Intellectual Property Rights ..................................................................... 8  
3   TRADE RELA TED REFORMS .......................................................................................... 9  
3.1   Trade Pe rformanc e .................................................................................................... 9  
3.2   Dere gulation ............................................................................................................  11 
3.3   SOEs  Reform ........................................................................................................... 13 
3.4   Government  Procurement .......................................................................................... 13 
3.5   Technical Regula tion System  Reform ........................................................................... 14 
4   TRADE AGREEMENTS ................................................................................................. 15  
4.1   European Union ........................................................................................................ 16 
4.2   CIS ..................................................................................................................... ... 16 
4.3   Canada .................................................................................................................. . 17 
5   FUTURE POLICY DI RECTIONS AN D GOALS ................................................................ 17  
5.1   Further Liberalisation ................................................................................................ 17 
5.2   Eliminate Corruption ................................................................................................. 18 
 
 WT/TPR/G/334 • Ukraine 
 
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  1  INTRODUCTION 
1.1.  The Government of Ukraine is pleased to pr esent its first Trade Policy Review Report before 
the WTO Members. The Ukrainian Government believes that this WTO review mechanism is a key element of the multilateral trading system that  provides for both transparency and a more 
comprehensive understanding of the Members' policies and regulatory environment. 
1.2.   Ukraine welcomes this review as an opportunity to bring WTO Members' attention to the 
changes that has occurred in its trade policy since the accession in 2008, and more importantly 
after the Revolution of Dignity in 2013, and to the challenges it is facing together with the steps 
that were already taken to overcome them.  
1.3.  Ukraine's accession to the WTO on 16 May 2008 was an integral part of domestic economic 
reform and a major component of Ukraine's economic policy. Despite all the political and economic 
challenges, Ukraine has been continuously building up the open market economy in order to 
further integrate into the multilateral trading system. Implementation of the WTO Agreements 
made Ukraine a more reliable and predictable trad ing partner. Ukraine recognises the important 
role of trade and trade-related policies in the country's economic and social development.  
1.1  Overview 1.4.  Ukraine is a large country located at the Euro pean Union's frontier with a total population of 
over 45 million. Ukraine with a pro-Western and pro-business government is focused on 
implementing reforms and strengthening national security and institutions. Ukraine is ranked the 4th most educated nation in the world, over 99.7%  of Ukrainians are literate and over 70% have a 
secondary or higher education. Ukraine's geographic location, combined with its high skilled 
human capital and low production costs, creates the opportunity to become a major service, 
manufacturing and trading hub at the intersection of Europe and Asia. 
1.5.  In 2013, Ukraine has made a decisive and historic choice to leave behind its Soviet past and 
to ingrate into the European Union. However, the euphoria of downfall of the former regime in 
February 2014 was immediately tempered by the need to mobilize all resources to protect Ukraine's territorial integrity following the annexation  of Crimea and the fuelling of the conflict on 
the Ukraine's Eastern border. 
1.6.  In regard to this, the Government of Ukraine reaffirms its full commitment to the 
international trade rules and principles as embo died in the WTO Agreements, and uses them as 
the guidance for its future trade and economic integration. In spite of different regional, domestic, 
economic and political challenges, Ukraine has exerted its best efforts in reforming the country's 
trade and investment regime in a WTO-consistent manner and with the aim to create a more favourable business environment. 
1.7.  Since the date of its accession, Ukraine has enacted new Customs and Tax Codes, 
significantly advanced in harmonization of its standardization and certification systems, sanitary and phytosanitary requirements, as well as improv ed its intellectual property protection regime 
and reformed the system of government procurem ent, in accordance with WTO principles and 
international rules. In line with its commitments, Ukraine does not maintain any prohibited subsidies in the sense of Article 3 of the Agreement on Subsidies and Countervailing Measures. 
1.8.  In 2015, Ukraine has ratified WTO Trade Facilitation Agreement and was invited to join the 
WTO Agreement on Government Procurement after concluding negotiations that have been 
ongoing since 2011. 
1.9.  The Government's priorities still are to enhance economic reforms and market liberalization, 
raise living standards, integrate into the global value chains and develop Ukraine's unique 
industrial, agricultural, scientific, technological, intellectual and cultural capacity and potential.  
1.10.  To achieve such results, Ukraine has already launched judicial and law enforcement 
reforms, reforms in state management and tax re gime, deregulation and healthcare reform. The 
basic principles of economic reforms and Ukraine's future development are the rule of law, fair WT/TPR/G/334 • Ukraine 
 
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  competition, freedom from corruption, protection of private property rights and small but effective 
state apparatus. 
1.11.  For example, over the last couple of year s Ukraine had resolved a large number of issues 
within its industrial sector, it had successfully conducted reform in the crucial gas sector and began 
reform in power generation market. As of today there are huge investment projects in energy 
transmission system and a lot of new opportunities in renewables sector. 
1.12.  Above all, Ukraine is currently on its way to modernizing and harmonizing Ukraine's 
business legislation with best international practice, enhancing product standards and the 
compatibility of such norms across borders, as well as creating a new, mutually profitable 
opportunities for trade.  
1.2  Economic Developments: 2008-15  
1.13.  Since its accession to the WTO in 2008, the negative trends have prevailed in Ukraine 
mainly due to the significant dependency from the external conditions and low domestic demand. In 2014–15, the country entered into even a deeper cr isis. On one hand, this was due to the fall in 
the external and investment demand, on the other hand, the consumer demand narrowed. 
Additional factors of further destabilization of the situation in Ukraine were mainly political and economic instabilities such as the annexation of the Autonomous Republic of Crimea and the 
military conflict on the east. As a result, GDP fell by 6.6% in 2014 and by 10.4% in 2015. 
1.14.  The gap of the cross-industrial and logistics problems, inter alia , reduced highway transit 
capacity due to the destruction of the infrastructure and problems with the transit of products at conflict boundary line, affected deepening of the fall in the industry - a reduction by 10.1% in 2014 
which continued through April 2015 - 21.5%. Since May the decline in the production pace began 
and for 12 months 2015 it amounted to 13.4%. 
1.15.  The negative dynamics of production was also maintained with a low external demand and 
unfavourable price situation on the world commodity markets (particularly, ferrous metals, 
fertilizers and grain) combined with the foreign trade restrictions imposed by the Customs Union's member states (primarily, the Russian Federation). High dependence of the enterprises on the 
imported raw materials and the devaluation of the official Hrv/US$ exchange rate also led to an 
increase in the cost of production. 
1.16.  For 12 months of 2015, the rate of industrial production decline by 13.4%. The decline in 
food industry reached 11.2%, in metallurgy – 16.4%, in chemical industry - 15.9%, and in 
engineering – 14.6%. 
1.17.  In the construction sector, due to the non-availability of investment support, as well as the 
decrease in the demand from other sectors and cut in the real incomes, contributed to the further 
decline by 20.4% in 2014, and by 14.9 % for in 2015. 
1.18.  Agriculture was the only sector that experienced the least negative impact of the crisis 
processes. So, for 2008-15 years, decrease in the index of agricultural products occurred as 
follows: in 2009 – by 1.8%, in 2010 – by 1.4%, in  2012 – by 3.9%. At the same time the index of 
agricultural products grew to in 2011 – 120.2%, in 2013 – 113.6%, in 2014 – 102.2%. In 2015 the index of agricultural products declined to 95.2%. 
1.19.  Overall, merchandise export values dropped by 29.3% in 2015, mainly on account of 
metallurgical and mineral products, machinery and equipment. Although Ukraine's agricultural 
export was also affected, it was supported by high agricultural harvest and liberalized access to the EU market. The share of agricultural expo rts is amounted 38.3% over 2015. Merchandise 
imports also contracted sharply due to weak production activity, falling real household income, 
hryvnia devaluation, introduction of imports surcharge and lower commodity prices. However, in 2015, there was a positive balance in Ukraine's merchandise trade, which amounted to 
US$0.6 billion (in 2014, there was a negative balance which made up –US$0.5 billion in the 
corresponding period).  WT/TPR/G/334 • Ukraine 
 
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  1.20.  As of the end of 2015, despite overall ne gative macroeconomic environment, there is some 
improvement in the key indicators of economic  development due to the de-escalation of the 
military conflict in the east, gradual recovery of the production activity, the presence of the 
devaluation benefits, and reduction of the public panics. The import surcharge, which was 
temporarily introduced in February 2015 and was abolished as of 1 January 2016, had raised 
Hrv 25 billion since its inception. In addition, new cross-industrial links in economy were formed, the consumer sentiments of the general public  were improved and relative macroeconomic 
equilibrium (exchange rate and price stability) ha s occurred. The shift to the new markets enabled 
the companies to improve their financial performance. In the future all this will allow Ukraine to enter a new stage of development. 
1.21.  Even more, on 1 January 2016, the free tr ade zone agreement with the European Union 
came into force and Ukraine hopes that this will change the macroeconomic situation for the best 
and will contribute to further stabilisation.  
Inflation developments 
1.22.  Consumer inflation ended at 22.3% in 2008, with a slight downward trend during 2009-11 
and remained virtually flat at around zero percent during 2012-13. Such price developments were primarily attributed to domestic food market saturation amid high agricultural harvests and 
worsening trade relations with the Russian Federation, and virtually unchanged utility tariffs 
despite a sharp increase in imported energy prices . A de-facto exchange rate peg having served as 
a nominal anchor also contributed to a decrease in inflation. 
1.23.  Meanwhile, unsustainable policies and weakening external demand led to large external 
imbalances and economic stagnation. Amid po litical instability at the end of 2013 and the 
beginning of 2014 and geopolitical tensions that erupted at the beginning of 2014 and evolved into military conflict in the industrial eastern oblasts Ukraine slipped into severe economic recession 
and experienced a painful macroeconomic adjustment. 
1.24.  Sharp devaluation of national currenc y (with the exchange rate overshooting in 
February 2015) and hikes in utility tariff for populati on led to a rapid acceleration of inflation. After 
peaking at 60.9% year-on-year in April 2015, a firm disinflation trend was formed thanks to a mix 
of tight monetary and fiscal policies, the National Bank of Ukraine measures to stabilize foreign exchange market, helped by falling world commodity prices, subdued domestic demand and stabilization of inflation expectations. Consumer inflation slowed to 43.3% year-on-year in 
December 2015. 
2  MACROECONOMIC AND TRADE POLICY REGIMES 2.1  Monetary Policy 
2.1.  Ukraine had been de facto  applying a policy of the fixed exchange rate for a long period of 
time which contributed to the accumulation and deepening of the macroeconomic imbalances. Amid adverse internal and external shocks, the hryvnia exchange rate adjusted sharply in 2008 
and 2014. 
2.2.  In 2014, given adverse political, geopolitic al and economic developments, the depreciation 
and inflation expectations of both business and households worsened substantially. These 
generated a significant pressure on hryvnia exchange rate and caused its depreciation against the 
US dollar by 93.5% per year. 
2.3.  Ukraine had to switch to a floating exchan ge rate due to inability to further support the 
exchange rate peg against the background of stre ngthening internal politic instability, external 
trade shocks and low international reserves. 
2.4.  In view of the deployment of the crisis, in 2014 the National Bank of Ukraine conducted an 
eclectic monetary policy based on the necessity to maintain the viability of the state under military 
threat, to stabilize the banking system and to ensure timely payment settlements, as well as to 
prevent a collapse of the financial system of the country. Further on, a joint "Stand-By" Programme with the International Monetary Fund was launched. WT/TPR/G/334 • Ukraine 
 
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  2.5.  As in 2015 the actual course of events occurred at a much worse scenario than it was 
envisaged by the "Stand-By" Program, Ukraine appl ied to the International Monetary Fund with a 
request for Extended Arrangement under the Exte nded Fund Facility. Currently the cooperation 
under this framework continues. The monetary po licy within EFF-supported programme is aimed at 
achieving  low and stable inflation, flexible exchange rate, rebuilding of NBU reserves and 
recovering of the banking system. 
2.6.  In order to prevent the destructive proce sses on the foreign exchange and credit markets 
and limit their impact on the general economic situation in the country the NBU has been 
modernizing and adjusting monetary policy continuously to face new challenges and turbulences. In particular, the NBU introduces a number of measures which implied stabilizing the value of hryvnia and strengthening of the administrative re strictions. In particular, the key policy rate was 
raised in two stages from 14% to 30%. 
2.7.  Systemic measures of the NBU together with the implementation of a new programme of 
cooperation with the IMF allowed stabilizing the situation in the foreign exchange market since 
April 2015.  
2.8.  Given the signs of stabilization in the bank ing system and formation of a downward trend of 
inflation, the NBU set to ease the monetary polic y, lowering the key policy rate from 30% to 27% 
on 28 August 2015 and then to 22% on 25 September 2015. 
2.9.  Meanwhile, the monetary policy of the NBU remains relatively tight in order to support the 
disinflation trend and prevent the negative impa ct of the external shocks on the Ukraine's 
economy. 
2.10.  During November-December 2015 and in early 2016, volatility on Ukraine's FX market 
increased, with the hryvnia depreciating moderately. Depreciation pressures on the hryvnia stemmed from decreasing export revenues amid falling global commodity prices and seasonal 
factors. Adhering to a floating exchange rate re gime, the National Bank's measures were aimed at 
smoothing excessive FX market fluctuations. 
2.11.  In August 2015 the NBU Board approved the draft Monetary Policy Strategy for 2016–20 
which foresees the declaration regarding the transition to the inflation targeting by the end of 
2016, as well as defines the clear quantitative inflation targets and mechanisms to achieve them.
 
The monetary policy during next years will focus on promotion of a gradual reduction of inflation and achievement of the medium-term infl ation target (5%) by the end of 2019. 
2.2  Fiscal Policy 
2.12.  Since the date of accession, Ukraine ha s adopted new Customs and Tax Codes and, as a 
result, a lot of positive changes took place. In particular, the simplified procedures with respect to 
customs valuation was introduced together with diminishing the number of permits required for 
customs clearance. The number of taxes and fees  was reduced, and the system of taxation was 
simplified as VAT electronic administration system was introduced and VAT reporting procedure 
was improved, the new norms regarding the payments of the tax debt were introduced. 
2.13.  Both, 2012 Customs Code and 2010 Tax Code, had incorporated a number of provisions 
based on international best practice, the EU standards and international trade law requirements. Implementation of the norms of international cu stoms law allowed to introduce the electronic 
declaration of products and presentation of the permits required for the customs clearance in an 
electronic way, expand the rights and obligations in the process of declaration of the customs value of products.  
2.14.  Ukraine also plans to further reform the St ate Fiscal Service (SFS) from controlling authority 
to servicing office. In this regard, in 2015 an inst itutional reform plan was approved that provides 
for reduction of the personnel and improving of it s quality and efficiency; demilitarization of the 
Tax Police and establishment of the Service for financial investigations; improving tax 
administration through the use of digital signatur es and on-line system of "Electronic Customs"; 
conducting the Uniform Social Contribution (USC) payments through the electronic services and WT/TPR/G/334 • Ukraine 
 
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  registration with the SFS only within one day; introducing an automated reporting system for the 
product and mediation mechanism (an alternative to the tax dispute settlement). 
2.15.  In order to create a more favorable tax environment, the Government of Ukraine aims at 
creating of a new tax system based on the princi ples of consistency, transparency, neutrality, 
responsibility, solvency, investment attractiveness and efficiency. In particular, a new tax reform 
will envisage reducing the tax burden on the payroll; creating tax incentives for de-shadowing of the business; simplifying and ensuring the stability of the tax legislation; creating equal 
competitive conditions for business activities by eliminating any tax preferences. The special tax 
regime for agricultural, forestry, fishery producers is now valid only until 1 January 2017, newly established tax regime assumes that the accrued amount of VAT at the differentiated rate is 
allocated between special account of agricultural, forestry, fishery producers and the state budget. 
2.16.  With respect to the recent developments , as of 1 January 2016, new amendments to the 
Tax Code and certain Laws on obligatory social insurance dealing with balancing the budget revenues in 2016 entered into force that affected almost all important taxes and procedures 
relevant for business. In particular, for the entities using the simplified tax system and belonging 
to the third group of single tax payers, the maximum income was decreased from Hrv 20 million to Hrv 5 million. The single tax rate for these tax payers was increased from 2% to 3% (in case of 
VAT payment) and from 4% to 5% (in case of inclusion of VAT to the single tax). 
2.17.  The flat rate of 18% for personal income tax (PIT) was introduced instead of previous 15% 
and 20%. PIT rate of 5% that applies to dividend s remained unchanged. The flat rate of the USC 
of 22% was established.  
2.18.  It is worth mentioning that the additional import surcharge in the amount of 5% and 10% 
was also cancelled as of 1 January 2016, and zero rate on import duty of vehicles with electric engines entered into force.  
2.3  Investment Regime 
2.19.  Ukraine is a ground floor investment oppo rtunity at the frontier of the European Union, 
offering a highly-skilled and productive workforce, low-cost manufacturing platform and attractive 
entry valuations.  
2.20.  In 2015, Ukraine has launched an investment promotion campaign "Invest Ukraine, Open 
for U" and has prioritized several sectors as the most attractive for foreign investor, inter alia , 
IT services and outsourcing, agribusiness, healthcare and pharma, aerospace and energy 
efficiency.  
2.21.  For example, regarding IT services, Uk rainian IT industry comprises of more than 
500 outsourcing companies and 100 global resear ch and development centres, and it employs 
more than 50,000 engineers. Elance ranks Ukrain e as No. 3 globally in terms of freelance 
professionals behind the United States and India.  The industry has grown by nearly 20 times over 
the last decade, from US$110 million in 2003 to about US$2.4 billion in 2014. Ukraine has also 
moved up 17 positions in the Global Services Location Index, and being ranked 24 was endorsed 
for its improvement in the competitiveness of its tax and regulatory costs.  
2.22.  With respect to regulatory framework, Ukrainian legislation provides for all the basic 
principles to ensure equal protection of rights, interests and property related to investment 
activity. Foreign investors are provided with national treatment, 10 years stabilisation clause, 
protection against nationalisation subject to compensation, as well as guarantee for repatriation of earnings subject to duly payed taxes, duties and other mandatory payments. 
2.23.  Recently, the protection of minority investors rights were strengthened by adoption the Law 
No. 1255-VII (in force as of 1 May 2016) that introduced stringent requirements for public joint-stock companies whose shares are registered on the stock market. Ukraine hopes that by 
implementing stricter requirements for public jo int-stock companies the protection of minority 
investors' rights will strengthen and such changes will make joint-stock companies more investment-attractive.  WT/TPR/G/334 • Ukraine 
 
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  2.24.  The Ukrainian Government has committed itse lf to implement reforms in order to further 
improve investment climate, particularly in the areas of public-private partnership, investors' rights protection and improvin g the management of public investment. 
2.25.  In the sphere of public-private partnership, the Government has adopted the law that 
eliminates regulatory barriers for development of public-private partnership, introduces 
international practice and mechanisms of fair distribution of risks. Ukraine is also discovering a possibility of taking long-term commitments and plans to further simplify the relevant procedures.  
2.26.  Ukraine continues the work on the implementa tion of the Law "On the industrial parks" that 
foresees state support for the installation of industrial parks that should service as a perfect platform and infrastructure for foreign investors. Even more, Ukraine plans to develop the network of industrial parks and the relevant law was already adopted.  
2.27.  Ukraine has launched the accession process to the OECD Declaration on International 
Investment and Multinational Enterprises. Ukraine is currently implementing necessary measures and had already sent the list of national treatment exceptions to the OECD.  
2.4  Trade-Related Intellectual Property Rights 
2.28.  In the area of trade-related intellectual property rights, Ukraine undertook to fully comply 
with the provisions of the TRIPS Agreement from the date of accession to the WTO. In the years 
following the WTO accession, Ukraine has adopted relevant amendments to related laws and 
regulations in the intellectual property (IP) field, as well as to Civil, Criminal and Custom Codes with a view to completing Ukrainia n's IP rights legal framework.  
2.29.  The Government of Ukraine pays considerab le attention to the effective protection of IP. 
Important efforts had been made over the past years to bring Ukraine's legislation closer to the 
standards set by the WTO.  
2.30.  For the purpose of a wide range of assi gnments on the provision of legal protection, 
management of implementation and protection of IP rights, executive and judicial authorities, 
scientific and educational institutions, the NGOs (both, domestic and international) and all interested representatives from general public are actively involved in the implementation of the 
state policy in IP rights area. 
2.31.  Ukraine maintains fruitful cooperation in the field of IP with the US Government. The 
Ministry of Economic Development and Trade of Ukraine continues to conduct its obligations under the Action Plan, which has been discussed with US Trade Representative in 2015, in order to 
improve the system of protection of IP rights in Ukraine. Successful implementation of the Plan will 
change the status of Ukraine in the so-called "L ist 301" which is annually drawn by the US Trade 
Representative. 
2.32.  In 2015, Ukraine has joined the European Commission's framework programme for support 
to the culture and audiovisual sectors "Creative Europe" and the Horizon 2020 that is the biggest 
EU Research and Innovation programme.  
2.33.  The main challenges before the Ukrainian Go vernment are: to improve the status of Ukraine 
in the "List 301", in particular by improving the system of collective management, reducing 
software piracy in the government bodies, by the combating Internet piracy. 
2.34.  The development prospects in the field of IP for the coming years imply the more effective 
implementation of the WTO standards, specific ally, the provisions of Part III of the TRIPS 
Agreement in relation to the civil, legal and administrative procedures, legal defence instruments, precautionary measures and criminal procedures, ra tification of the Protocol amending the TRIPS 
Agreement (the Doha Declaration) and harmonisation of the national legislation with the EU acquis 
and implementation of the relevant provisions of the EU-Ukraine Association Agreement. 
2.35.  Also, on 3 February 2016 the Law "On ra tification of the Protocol amending the TRIPS 
Agreement" was adopted. WT/TPR/G/334 • Ukraine 
 
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  2.36.  Law "On amendments to certain Acts of Uk raine on brining the legislation of Ukraine on 
seed and seedling in line with European and International norms and standards" (amendments to Laws "On Protection of Rights to Plant Varieties" and "On Seeds and Planting Stock") was adopted by Parliament on 8 December 2015 (No. 864-VIII). 
2.37.  On 28 January 2016 the Parliament adopted the Draft Law "On state support of 
cinematography" in first reading (No. 3081-d, 27/11/2015). This bill also provides amendments to Law "On Copyright and Related Rights" concerning pr otection of copyright and related rights in the 
Internet. Governmental Draft Bill "On amendments to certain Acts on protection of copyright and 
related rights in the Internet" (No. 3353, 23/10/2015) is under discussion in the relevant Parliament's committees. 
2.38.  Draft Bill "On Amendments to Customs Code of Ukraine on protection of intellectual 
property rights during movement of goods across the customs border of Ukraine" was approved by 
the CMU and submitted to the Parliament (No. 3684, 21/12/2015). Draft provides a mechanism for the application of safeguards to prevent unfair us e of IP rights, strengthen measures to prevent 
the movement of counterfeit goods in international parcels, the possibility of early passing of 
goods, customs clearance of which is suspended, etc. 
2.39.  Draft Bill "On Amendments to certain Ac ts on improvement of the legal protection of 
intellectual (industrial) property" was approved by  all of the responsible state bodies and will be 
submitted to the CMU soon. It provides amendments to legal regulation of trademarks and industrial designs in line with EU legislation, introduces the administrative appeal procedures for registered industrial designs ("post-grant opposition"), etc. 
2.40.  Draft Bill "On Amendments to certain Acts  on enhancement of the legal responsibility and 
legal protection of rights in IP sphere" (to Crim inal and Customs Codes) is under approval of the 
responsible state bodies. And soon it will be submitted to the Government according to the 
Regulation of Cabinet of Ministers of Ukraine. It provides strengthening (restoring) criminal 
responsibility, expansion the list of persons, who ca n seek protection of IP rights during movement 
of goods across the customs border of Ukraine, etc. 
2.41.  Draft Bill "On Amendments to the Article 5 of Act on distribution of audiovisual products, 
phonograms, videograms, computer programs and databases" was approved by the Government and submitted to the Parliament (No. 3384, 30/ 10/2015). Draft improves the process of marking 
by control marks and control for their use. It provides a possibility for copyright holders and 
holders of related rights to independently protect their interests in the process of issuance of 
control marks, by analyzing the information about those who receive control marks and the names of copies placed in the web site of the state authority. 
2.42.  Draft Bill "On Amendments to certain Acts on acquisition, disposal and protection of 
copyright and related rights" was approved by th e Government on 16 December 2015 and will be 
submitted to Parliament soon. It provides new regula tion of IPRs on objects (software, data bases, 
etc) created during "work on hire" and the opportunity to conclude licensing agreements regarding 
copyrights and related rights on the basis of publ ic offer via telecommunication systems. DL meets 
the requirements of DCFTA, TRIPS Agreement and WIPO legislation. 
2.43.  The Draft Bill "On Amendments to some legi slative acts of Ukraine concerning improvement 
of the collective management of copyright and rela ted rights" has been developed and soon it will 
be submitted to responsible state bodies for appr oval according to the Regulation of Cabinet of 
Ministers of Ukraine. 
3  TRADE RELATED REFORMS  
3.1  Trade Performance 3.1.  Since the accession in 2008, Ukraine has a negative trade balance and disruptions in 
production activity due to several factors, amon g the most recent and crucial are decrease in 
global commodity prices, deterioration of trade relations with the Russian Federation and the military conflict at the Eastern Ukraine that further continued to weigh on Ukraine's export performance in 2015.  WT/TPR/G/334 • Ukraine 
 
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  3.2.  In 2015, Ukraine exported its goods and serv ices to 210 countries, with the European Union, 
Russian Federation, Turkey, China and Egypt being among the top-5 trading partners amounting for more than 60% of all exports. The total exports for 2015 amounted to US$46.6 billion, a decrease for 27.2% as compared to the 2014. Expo rts of goods amounted to 81.8% of the total 
volume of goods and services. 
3.3.  The main exported goods are agricultural goods and foodstuff, metallurgical products, 
mineral products, products of chemical industry, wo od and paper, products of light industry. While 
the services exports structure remained mostly unchanged since accession and comprises mainly 
of transport services, computer and IT, processi ng of material resources and business services. 
3.4.  Ukraine's economy is characterized with a high export dependency (in 2014 goods and 
services exports amounted to 48.6% of GDP) which causes the growth of the economy 
dependency from the foreign economic conditions. The volumes of trade with the 
Russian Federation, earlier considered as the biggest trading partner, has been gradually declining starting from 2012 (from around 24.3% in 2012 to 12.7% in 2015) mostly due to the introduction 
of illegal and discriminatory trade restrictions ov erall amounting for around US$98 billion of losses 
in trade for Ukraine. The decrease in volumes of metal supplies and products thereof, as well as mineral products triggered the decline in export s to the EU countries. However, the share of 
exports to the EU still increased from 22.3% in 2012 to 34.1% in 2015. 
3.5.  With respect to trade in services, Ukraine is  a net-exporter of services, specifically, in the 
high-technology and industrial areas. In 2010-14 , the growth pace for the services in the 
telecommunications field, computers and IT proved stable (in 2014 compared with 2013 the 
growth was caused by the increased volumes of these services provided to the enterprises in 
Cyprus, Malta, Canada, Switzerland, Italy, Israel), construction services (mainly, in Turkmenistan), 
royalties and other services related to the use of the IP (the United Kingdom, Georgia, Armenia, 
Belgium, Estonia, Belize, Lithuania). 
3.6.  Trends in the development of the foreign tr ade in services starting from 2010 prove that in 
the recent years the importance of such trade for the economic development is getting 
significantly noticeable. Enhancing the role of the services is caused by the success in the 
development of IT technologies, construction , transportation system etc. The number of 
enterprises engaged in the exports of services has grown.  
3.7.  However, in 2014, the demand for the Ukrainian exports decreased, the economic instability 
caused a drop in imports. Therefore, the volume of exports and imports of services of Ukraine in 
2014 decreased compared to 2013, respectively, by 34.2% and 23.3%.  
3.8.   In 2015 in the services import structur e the predominant services were transportation 
services(22.3%), financial services (16.5%), state and governmental services (14.7%), business 
services (13.4%), the services related to travelling (11.6%), and telecommunication, computer and information services (10.4%). 
3.9.  Taking into account the export tendencies  and having examined the export potential, the 
Ukrainian Government determined trade and export promotion as one of main directions in its trade policy. 
3.10.  In order to overcome structural defo rmations and ensure the rapid development of 
economic activities for the production of high value added products, the MEDT has prepared the 
Concept of State Target Economic Program of indu strial development for the period until 2020 and 
has adopted a number of relevant laws and regulati ons in this direction. In the upcoming months, 
Ukraine will also finalize its first Export Strategy together with Action Plan.  
3.11.  The new agrarian policy of Ukraine was deve loped with the focus not only on an increase in 
export of raw materials and semi-finished products, but also on export of processed products with 
higher value-added. 
3.12.  In the context of regional challenges and global economic integration and considering of the 
fact that a number of Ukrainian industries are facing an increasing number of discriminatory trade WT/TPR/G/334 • Ukraine 
 
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  restrictions, Ukraine recognizes the importance of protection of the legitimate interests of its 
domestic producers from unfair trade practices.  
3.13.  In this regard, the Law "On Foreign Econom ic Activity" was amended to enable the Cabinet 
of Ministers to take countermeasures against any country that is recognized as an aggressor 
country by the Verkhovna Rada, or causes harm to the Ukrainian economy and Ukrainian state. 
3.14.  On the other hand, some countries like Egypt and the EU had eliminated their trade 
restrictions towards some Ukrainian goods.  
3.15.  After the US Government had renewed its Generalized System of Preferences (GSP), the 
Ukrainian Government managed to return certain Ukrainian goods back to the list of products eligible for the duty-free treatment (currently ar ound 3,500 Ukrainian goods are GSP-eligible). The 
next step is to inform Ukrainian exporters on opportunities available under the GSP that would 
allow to increase export and provide additional competitive advantages to the Ukrainian goods. 
3.16.  A big step for the Ukrainian exporters was the launch  of the Deep and Comprehensive Free 
Trade Area (DCFTA) with the EU that has had an enormous impact on Ukrainian industry by lifting 
tariff and non-tariff barriers, most notably in the agricultural and manufacturing industries. 
Implementation of the first step, the unilate ral removal of the tariffs in 2014 by the EU, 
encouraged Ukrainian businesses to expand their exports to the region. Since its inception, the 
biggest boost got the agricultural and IT sectors, stimulating the domestic growth in these areas. 
3.17.  On 4 November 2015, the Verkhovna Rada has ratified the Protocol that provides for 
Ukraine's accession to the WTO Trade Facilitation Agreement (TFA) and is to be followed by step-
by-step implementation of its provisions.  
3.18.  Export Promotion Council was established within the MEDT to support and promote export, 
open new markets, intensify cooperation with fo reign trade partners. Besides promoting Ukrainian 
goods on the foreign markets, Export Promotion Council will solve the most problematic issues of 
exporters, such as decrease in volumes of export  and simplification of export-import procedures. 
The Council is also a place for public-private dialogue. During the Council meetings in working groups exporters from a particular sector share information on the trade barriers they are facing 
with the government.  
3.19.  The Ukrainian Government also aims at creating an export-credit agency and establishing 
export promotion agency, and plans to open eight trade representative offices around the world, 
as well as to reboost the governmental export promotion portal ( http://www.ukrexport.gov.ua/ ). 
3.20.  In January 2016, Ukraine has launched a pilot container train to the People's Republic of 
China via a new "Silk Road" that should significantly increase the volume of cargos transported from Ukraine to Asia. Already in 2015, the vo lume of transported goods between Ukraine and 
China amounted to 25.48 million tonnes, which is 11% more than in 2014, and today China ranks 
the first place in export traffic from Ukraine.  
3.21.  The new route will also allow redirecting cargo flows bypassing the Russian Federation and 
compensating for the transit that was blocked by the Russian Federation as of 1 January 2016. The 
Ukrainian Government aims to further facilitate the movement of trains on the route and increase the cargo turnover to the extent possible, with th e final goal to restore the role of Ukraine as a 
transport hub, in particular, on the route from Europe to Asia. 
3.2  Deregulation 
3.22.  Deregulation reform is currently amon g one of the top priorities of the Ukrainian 
Government according to the Strategy for Sustainable Development "Ukraine – 2020" that was 
adopted in early January 2015. In this regard, the Government has further adopted an Action Plan 
on Deregulation (Resolution No. 357 of 18 March 2015) which consists of 131 deregulation measures that are to be implemented by the mid- 2016. The Plan overall aims at elimination of an 
excessive regulation and administrative burden, improvement of technical regulation, licensing and 
permitting procedures, simplification of customs and tax regulation and reduction of corruption level.  WT/TPR/G/334 • Ukraine 
 
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  3.23.  The ultimate goal of deregulation reform is to create favorable conditions for business 
development and attraction of foreign investments in to Ukraine. 
3.24.  In spite of all political and economic ch allenges, the Government of Ukraine put its best 
efforts to reach the abovementioned ambitious goal . In particular, throughout the last couple of 
years, a lot of different steps were taken in this direction. The Better Regulation Delivery Office as 
an independent NGO was created in order to facilitate reforms and deregulation process in different sectors of economy. The Council of Business-Ombudsman was created and has already 
considered more than 500 complaints. 
3.25.  In 2014-15, the number of permits was redu ced from 143 to 81 (43% decrease), and the 
subsoil permit system was simplified that allo wed to lower the annual cost for Hrv 3 billion. 
3.26.  Mandatory certification was cancelled for 90% of products, including mandatory certification 
of new cars. Quarantine certificates were abolished and the issue of phytosanitary certificates was 
accelerated that allowed to liquidate corruption risks of around Hrv 8 billion. 
3.27.  The new Law "On amending of Law 'On quar antine of plants'" has reduced time-frame for 
issuance of phytosanitary and quarantine certificates from 5 days to 24 hours. 
3.28.  The new Law "On Licensing of Economic Acti vity" was adopted that had significantly reduced 
the number of economic activities subject to  licensing from 54 to 30. Export-import of 
laser-readable discs and equipment for theirs production, holographic protective elements, as well 
as ferrous metal goods are no longer subject to licensing. Even more, the draft law No. 2498a abolishing six other export-import licenses for alcohol and tobacco was recently adopted in the first reading.  
3.29.  Overall, the number of administrative serv ices drastically decreased from 3,000 to 562 and 
more than 600 single window offices were opened around the country that provide 51 administrative services directly on the spot. Around 100 regulatory barriers were abolished in 
2015, and 73 are pending approval of the Government. 
3.30.  The procedure for registration as an entrepreneur or legal entity now takes only 2 days as 
compared to 5 days before the reform, and overall the process was modernised and simplified. The 
simplification of business registration also provides  for the principle of extraterritoriality, creation 
of competitive environment, cancellation of the annual form No. 6 filing, unification of business registration procedures, obtaining and filing of documents in electronic form. Now, an entrepreneur or legal entity can be register with notary or any other state registrator as defined in 
the law, as well as on-line. 
3.31.  In this regard, simplification of procedures for registration of land lease was also introduced 
by encouraging parties to notarize the land lease agreements. The minimum lease period was 
reduced to 7 years. 
3.32.  In 2015, 16 permits were abolished that allowed to lower the state regulatory pressure in 
the agricultural sector, food industry, mining  industry and power sector. Among them, the 
following regulatory measures were cancelled: certification of pesticides and agrochemicals, 
operational permit for sea food processing facilities, certification for drinking water together with the conclusion of the state sanitary and epidemiolo gical expertise for packaged drinking water. The 
Draft Law No. 3759 that aims at establishing uniform conditions for obtaining 38 types of permits 
and will make relevant amendments to four Codes and 22 Laws was already registered with the 
Verkhovna Rada.  
3.33.  As the monopoly of Ukrecoresursy was destroyed with the economic benefit of around 
Hrv 300 million, a new competitive and efficient market for recycling tare and packaging waste in 
Ukraine has emerged.  
3.34.  Deregulation and improving the business climate in agriculture sector is aimed at removal of 
artificial barriers and unnecessary costs for prod ucers, exporters and importers. To this end, 
regulations that supersede or limit the effect of permitting procedures, requirements for economic WT/TPR/G/334 • Ukraine 
 
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  activities as well as some of the powers of pub lic authorities that exercise the functions of state 
control have been developed and adopted. 
3.35.  In order to optimize the state supervision over the economic activity the ban on more than 
one per year routine check was introduced, the moratorium on audits of businesses was adopted, 
administrative responsibility for abuses during the state supervision was introduced and the 
process of reducing the number of regulatory bodies and their functions has begun.  
3.36.  One of the most recent initiative in the sphe re of deregulation is implementation of the best 
practices, improving investment and business climate under the World Bank Group "Doing 
Business" rating. In particular, on 12 January 2016 the Government adopted a roadmap "Doing Business-2017" that envisages 57 steps that would enable Ukraine to enter the top-50 ranking in 
2016, and top-20 in 2017. Since its accession, Ukraine has already risen 43 positions. 
3.3  SOEs Reform 
3.37.  The state-owned sector accounts for a significant share of the Ukrainian economy and 
remains the largest employer in the country with around 1 million people working at the 
state-owned enterprises (SOEs). Overall, Ukraine has more than three thousand SOEs, however 
only 1,829 of them are currently operating, and ev en less are actually contributing to the State 
Budget. 
3.38.  Thus, in 2015, Ukraine has launched the SOEs reform with the ultimate goal to build a 
healthy and transparent SOE's management by implementing global best practice, increase efficiency of the SOEs, enhance their corporate governance, attract investment and, as a result, create value for the country. The reform itself cons ists of the two main directions: improvement of 
the SOEs efficiency and privatisation of the non-strategic SOEs.  
3.39.  A specially created task force "SOE Reload" that brings together the Government, civil 
society and international organizations is responsible for the successful implementation of the 
reform.  
3.40.  In 2015, the transparency guidelines mandat ing all SOEs to publish their financial accounts 
were passed. The representatives of the World Ba nk, IFC, EBRD, Kyiv School of Economics and 
others were involved in the nomination committee tasked with identifying high quality 
CEO candidates for the largest SOEs. Even more, an audit initiative was launched in order to audit the largest SOEs for the first time by reputabl e, internationally recognized audit firms.  
3.41.  Upon the results, the MEDT released th e first annual review of the TOP-100 SOEs that 
comprise 80% of all the SOE sector revenues and 90% of assets. This review was the first step in 
increasing transparency of the SOEs and it brou ght attention to the need of further improvement 
of the SOEs governance and profitability.  
3.42.  So far, Ukraine does not have the expertise to efficiently manage the SOEs, nor does it have 
the resources to properly invest in many of them, thus privatization is a very important tool to reduce the portfolio of SOEs to a manageable size, limit corruption and fiscal risks, while inviting in 
international investors in to the country. The Ukrainian Government's ambitious privatization 
programme aims to release over 300 SOEs. 
3.43.  In 2015, the Government adopted the Resolution No. 271 that establishes the list of SOEs 
subject to privatization. In addition, the draft law on shorting the list of SOEs that are not subject 
to privatization is pending approval before the Verkhovna Rada. In 2016, Ukraine will further adopt 
new conditions for privatization so as to maximize the transparency along the process.  
3.4  Government Procurement  
3.44.  The initiative to reform public procurement in Ukraine surfaced in early March 2014 with the 
aim to completely transform the system so as to make it transparent, non-discriminatory and easy 
to monitor. WT/TPR/G/334 • Ukraine 
 
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  3.45.  In this regard, Ukraine has made all necessary amendments to make its procurement 
legislation compliant with the EU directives on public procurement. Law of Ukraine "On procurement" (hereinafter - the Law) (as amen ded on 15 September 2015) simplifies public 
procurement procedures, improving transparen cy and openness of procurement, creating 
conditions for fighting corruption in public procurement, and the approximation of national 
legislation to European standards. 
3.46.  For the reason of implementation and adaptati on provisions of national law to EU Directives 
in cooperation with experts from EU technical assistance projects "Harmonization of the 
procurement system in Ukraine with EU standards" the Ministry prepared the draft of the Strategy 
of Public Procurement Reform ("Roadmap")" (hereina fter - Strategy). The Strategy and Action Plan 
of its implementation till 2022 specified provisions  and articles of the EU Directives in public 
procurement sphere that need to be implemented to the Ukrainian legislation.  
3.47.  In November 2015, Ukraine was invited to join the WTO Agreement on Government 
Procurement (GPA). These efforts were endorsed by the WTO's Committee on Government 
Procurement. Ukraine further intends to ratify the Agreement as soon as possible and will formally 
accede to the GPA 30 days after it will deposit its instrument of accession with the WTO.  
3.48.  Participation in the GPA will help Ukraine to  further strengthen good governance in the area 
of public procurement, will assist in eliminating corruption, and increase the transparency of the 
government procurement practices, as well as help to modernize relevant processes. 
3.49.  On 29 December 2015, the Verkhovna Rada adopted new law on public procurement and by 
autumn 2016 all public tenders will be transferred into electronic format and will be conducted 
through the electronic procurement system "Prozorro" (( http://www.prozorro.org ). 
3.50.  Prozorro is a system created on the initiative of Ukrainian NGOs, commercial platforms, 
public authorities, and businesses with the goal to  make public spending transparent and effective, 
prevent corruption through public monitoring and wider range of suppliers. All tenders held in the 
system can be traced in real time. 
3.51.  Prozorro was launched as a pilot version in February 2015 and already owing to this open-
source system around Hrv 500 million were sa ved in 2015. The Ukrainian Government expects 
that overall such system of public procurement will allow to save around Hrv 50 billion per year in the future. 
3.5  Technical Regulation System Reform 
3.52.  After accession to the WTO, Ukraine has brought its legislation in to compliance with all the 
substantive provisions of the WTO Agreement on Technical Barriers to Trade, including its procedural and transparency requirements.  
3.53.  In particular, the Law "On Standardization" was revised to clarify the terminology used in 
order to avoid any compulsory application of standards, and to create a national standardization body fully equipped to promulgate standards while not being a State authority. By adopting the 
Law "On Technical Regulations and Conformity Assessment" Ukraine established a legal and 
institutional framework for the development, adoption and application of technical regulations and conformity assessment procedures that will also follow the system applied by the EU.  
3.54.  The list of goods subject to mandatory cert ification was gradually whittled downed and from 
2015 mandatory certification of food products, with the exception of tobacco products, is no longer 
in place and by 2018 the certification regime will be replaced with the conformity assessment procedures as stated in the Law "On Technical Regulations and Conformity Assessment". 
3.55.  In line with its WTO commitments, in November 2014, the Cabinet of Ministers designated 
the Ukrainian Scientific Research and Training Centre of Standardization, Certification and Quality Problems to serve as the new national standardization body.  
3.56.  The main objective of the further reforms of  the technical regulation system is transition 
from the post-Soviet system of standardization ba sed on burdensome interstate standards (GOST) WT/TPR/G/334 • Ukraine 
 
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  and mandatory certification to the modern system based on up-to-dated regulations and 
standards. The main tasks are to harmonise the system with the international and the EU requirements, develop and implement a new tec hnical regulation, create electronic data base 
and open an on-line shop for purchasing standards. 
3.57.  Reform of the technical regulation system will allow to protect Ukrainian market from the 
imports of dangerous and defective goods, will eliminate unnecessary technical barriers to trade, will enhance the competitiveness of Ukrainian products and, potentially, will simplify the supply of 
Ukrainian goods, e.g. agricultural machinery, to the foreign markets. 
3.58.  The first stage of the reform aiming at pr oviding necessary legislative support for transition 
to the EU standards and regulations was completed at the end of 2015 by adopting a necessary package of documents. In total, Ukraine adopted 47 technical regulations, 45 of which were 
developed based on the EU regulations and 41 technical regulations are already binding (e.g. 96% 
of planned EU Directives were adopted). 
3.59.  In 2015, Ukrainian National Standardization Body adopted 4,833 national normative 
documents (standards and amendments to standards), 2,651 of which were harmonized with 
International and European ones. Today the Nation al Standards Fund consists of 18,623 normative 
documents, including 11,662 national standards harmonized with International and European 
ones. 
3.60.  The mandatory application of the GOSTs was also revoked. Before the GOSTs regulated all 
characteristics of products or services. The conformity with the GOSTs' requirements was also controlled through the certification of individual product items provided by the producers that did 
not provide any guarantee that the remaining products also meet the GOST. 
3.61.  In this regard, in 2015 around 16 thousand of GOSTs developed before 1992 were abolished 
and will become inoperative in the next 2-3 year s starting from January 2016. This step should 
promote competition, and development of the new innovative products and services. 
3.62.  As of January 2016, Ukraine also cancelled the mandatory certification for the agricultural 
machinery (Decree of the MEDT No. 1699) and there is no longer a need to receive any Ukrainian 
conformity certificate for agricultural machinery. A sole requirement that remains is the conformity 
with two technical regulations for tractors in fo rce as of 2016 after a three-year phase of their 
voluntary application that started in 2013. 
3.63.  The overall goal of the next stage of te chnical regulation system reforms for 2016 is to 
eliminate unnecessary barriers for the access of Ukrainian goods to the EU markets. Specifically, 
this implies the fulfilment of the Strategy for the development of the system of technical regulation 
for the period until 2020 which includes signing of  the Agreement on Conformity Assessment and 
Acceptance of Industrial Products (ACAA) for different product groups. Besides, the new technical 
regulations will be approved and the market surv eillance, as a new element of control, will be 
introduced.  
4  TRADE AGREEMENTS 
4.1.  After joining the WTO, Ukraine continued to pursue further integrate into the global trading 
system as a means to achieve sustained economic growth. In the recent years Ukraine activated its work with trading partners, inter alia , by finalising negotiations on free trade zone with Canada 
and by restarting trade negotiations with Israel and Turkey. 
4.2.  While participating in preferential trade agreements Ukraine observes relevant 
WTO provisions, including Article XXIV of GATT 19 94 and Article V of the GATS, and ensures that 
the provisions of the other WTO Agreements with respect to transparency, notification, 
consultation and other obligations concerning establishment of free trade areas and customs unions are met. 
4.3.  Ukraine duly submits all the notifications on its Free Trade Areas and Custom Union 
Agreements as well as notifications on any regulatory changes as required to the WTO Committee on Regional Trade Agreements. WT/TPR/G/334 • Ukraine 
 
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  4.1  European Union 
4.4.  After Ukraine has irreversibly confirmed its wish to enhance European integration with the 
ultimate goal to join the European Union, the EU and Ukraine signed the Association Agreement 
and, upon the ratification, as of 1 November 2014 important parts of the Agreement were 
provisionally applied. 
4.5.  Implementation of the EU-Ukraine Associatio n Agreement is held on the basis of Action Plan 
for 2014-17, approved by the Cabinet of Ministers on 17 September 2014. 
4.6.  In line with the plan, later in 2014 the EU  and Ukraine signed the Deep and Comprehensive 
Free Trade Area (DCFTA) that is the part of the EU–Ukraine Association Agreement. The document 
is aimed at enhancing trade relation between th e members of the EU and Ukraine by opening the 
EU internal market for Ukrainian goods and services. It also provides for harmonization of the laws 
and regulations in various fields and the introducti on of advanced EU standards. Ukraine has also 
agreed to align its legislation on SPS and animal welfare to the EU acquis communautaire .  
4.7.  The DCFTA covers basic issues of bilatera l trade in goods, including technical barriers to 
trade, trade remedies, sanitary and phytosanitary measures, rules of origin, competition policy, 
IP rights, including geographical indications, trade in services, government procurement.  
4.8.  Until the end of 2015, the EU was providin g autonomous trade preferences to Ukraine and as 
of 1 January 2016 the DCFTA fully entered into force.  
4.9.  In May 2015, integration of Ukraine into th e European Union was designates as one of the 
main goals of the National Security Strategy of Ukraine. According to the Strategy, the EU-Ukraine 
Association Agreement defines strategic guidance for realization of systemic political and 
socio-economic reforms in Ukraine, comprehensive approximation of Ukrainian legislation to the 
EU norms and rules. 
4.10.  In addition to the mentioned above, since its accession to the WTO, in 2011 Ukraine has 
also become a party to the Energy Community Treaty that, inter alia , requires implementation of 
the EU acquis  on electricity and gas, notably the Th ird Energy Package. In line with its 
commitments, Ukraine has amended and adopted new energy law that was developed by the 
Ministry of Energy and Coal Industry in collab oration with the Energy Community. In particular, 
the Law "On Natural Gas Market" (No. 2250 of 26 February 2015), that provides conditions for further functional unbundling of Naftogaz into separate production, transmission, storage and supply companies. It provides for non-discriminatory third-party access to the gas transport 
system on contractual basis and establishes the right for customers to freely choose their gas 
suppliers. One of the law's objectives is to end non-cost reflective pricing and cross-subsidization, while providing a framework to protect vulnerable customers. 
4.2  CIS 
4.11.  During 2014-15 cooperation with CIS countries under the Agreement on free trade zone of 
the CIS signed on 18 October 2011 was continued. 
4.12.  In November 2015 Ukraine ratified the Protocol between the Government of Ukraine and the 
Government of the Republic of Tajikistan to the Agreement between the Government of Ukraine 
and the Government of the Republic of Tajikistan  on free trade of 6 July 2001 on withdrawal of 
certain goods from free trade regime. 
4.13.  Protocol approved the lists of goods that  are excluded from the free trade regime between 
Ukraine and Tajikistan. 
4.14.  In January 2016 the Protocol on the application of the Agreement on Free Trade Zone of 
18 October 2011 between the Parties and the Republic  of Uzbekistan was ratified. According to the 
Protocol the provisions of the Agreement on free trade zone of the CIS shall be applied in relations with the Republic of Uzbekistan. WT/TPR/G/334 • Ukraine 
 
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  4.15.  With effect from 1 January 2016, the Russian  Federation has removed the preferential trade 
regime contemplated under the Agreement on free  trade zone of the CIS to imports of certain 
Ukrainian products. 
4.3  Canada 
4.16.  On 14 July 2015, Ukraine and Canada have completed negotiations on the Canada-Ukraine 
Free Trade Agreement (CUFTA) and the document is currently being prepared for the ratification. 
The free trade zone should open 98% of the Cana dian market for Ukrainian goods. In particular, 
import duties will be abolished for all agricultural products except for 108 tariff lines and all 
industrial goods, except some types of cars (7-years transitional period application). Agricultural commodities, which are included in 108 tariff lines, could be exported at a zero rate within the Global Canadian tariff quota. In turn, Ukraine should abolish tariffs for 80% of Canadian goods 
from the subsequent abolition of tariffs for other pr oducts in three phases - over the next 3, 5 and 
7 years. Free Trade Agreement between Canada and the Ukraine will create new opportunities for Canadian and Ukrainian companies, enhancing bilateral trade and economic relations between 
these two countries. 
5  FUTURE POLICY DIRECTIONS AND GOALS 5.1  Further Liberalisation 
5.1.  Ukraine has stabilized its economy, defended its territory and launched unprecedented 
structural reforms and the EU convergence policies to create a solid platform for future sustainable growth.  
5.2.  In March 2015, the Ukrainian government proposed, and Parliament adopted, eight important 
reform laws targeting the budget, taxation, pensions , energy pricing, protection of investor rights 
and other areas. This new legislation paved the way for the International Monetary Fund to approve US$17.5 billion in funding to Ukrain e and led to economic and currency market 
stabilization.  
5.3.  The Ukrainian Government is determined to successfully pursue further reforms and has 
identified the following top priorities for the future: further deregulation and creating favourable 
business climate, development of export, attraction of new investments, as well as finalising both 
the SOEs reform including massive privatisation, and the reform in the public procurement sector.  
5.4.  The privatization of the state enterprises is defined as critical and will not be further 
postponed. With respect to the SOEs that will remain state-owned they will be isolate from any 
political influence, and will be managed transparen tly and professionally. For this purpose, a state 
management holding company will be created. 
5.5.  The public procurement reform will enter into a new phase and by the end of year will 
become mandatory for all. As a result of deploying the electronic system it is planned to save 
Hrv 50 billion per year starting from 2016. In term s of attracting investments, the Government of 
Ukraine intends to engage not less than three large foreign investors and not less than 
US$5 billion of FDI in 2016. 
5.6.  Ukraine will review more than 10 thousand regulatory documents in five key sectors that will 
produce an economic benefit of billions of hryvni a per annum. In accordance with the EU-Ukraine 
Association agreement, in 2016, around one thousand international and European standards will 
be adopted as national.  
5.7.  The Ukrainian Government will further enhance its work on implementation of the Strategy 
for Sustainable Development of Ukraine that prov ides for the achievement of 25 key indicators, 
among them, it is planned that Ukraine will ente r the top-30 countries in the World Bank's Doing 
Business ranking, in Standard and Poor's rating on liabilities in foreign currency, Ukraine's investment category will be not be low "BBB" and the GDP per capita (under the 
purchasing power parity) will increase to US$16,00 0, and net FDI inflow will equal US$40 billion by 
2020. WT/TPR/G/334 • Ukraine 
 
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  5.8.  Ukraine will maintain an open trade policy and will enhance its participation in the multilateral 
and regional (EU) trading systems. The Government  of Ukraine will further explore advantages of 
the WTO system in order to protect it commercial interests and will use every opportunity to cooperate with the WTO Members across the key issues with the aim of achieving successful 
outcome. 
5.2  Eliminate Corruption 5.9.  Ukraine establishes as its ultimate goal to eliminate corruption and to enter the 
top-50 countries under the Transparency International Corruption Perceptions Index in the nearest 
future. In this regard, apart from general reforms that aim at minimizing bureaucracy and ways for 
corruption, the Government has approved the state programme on the implementation of 
anti-corruption policy for 2015-17 and created two main state institutions: National 
Anti-Corruption Bureau (NAB) and National Agency for Preventing Corruption (NAPC).  
5.10.  Even more, according to the Law "On the Prosecutor's Office" the Specialized 
Anti-Corruption Prosecutor's Office was established within the Prosecutor General's Office that will 
perform the following functions: supervise th e observance of laws during the pre-trial 
investigations by the National Anti-Corruption Bureau of Ukraine; state accusation assistance in the relevant proceedings; representation of citizens or the state interests in the court in cases 
prescribed by the law and related to the corruptive or corruption related offenses. 
5.11.  A range of anti-corruption laws has been approved, and some legislative acts are still being 
developed or discussed, particularly, regarding setting  up of state supervisory authority in the area 
of information access and verification of the integrity of civil servants. The draft law on financing of 
political parties has successfully passed the first reading in the Parliament. 
5.12.  Several big professional anti-corruption ev ent took place during 2015, such as International 
conference "Preventing. Fighting. Acting" and "Anti-corruption Forum" in Kyiv and Kharkiv where 
public had a chance to discuss issues related to corruption and the ways to solve them. 
 
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