. /.  WORLD TRADE  
ORGANIZATION   
G/TRIMS/W/115 
8 October 2012 
 (12-5453) 
Committee on Trade-Related Investment Measures Original:   English 
  
 
CERTAIN LOCAL CONTENT PROVISIONS IN THE DRAFT LAW No. 10183  
ON AMENDMENTS TO THE LAW OF UKRAINE  
"ON ELECTRIC POWER INDUSTRY" 
 
Replies to Questions from the EUROPEAN UNION
1 
   The following communication, dated 5 October 2012, is being circulated at the request of the Delegation of Ukraine.  
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Question 1 
 
Following the adoption of the amendments referred to above in first reading in July, it is 
our understanding that a second reading is to take place and that the Law will be signed by the 
Ukrainian President.  Could Ukraine inform abou t when those steps are expected to be taken 
and when the Law will effect ively enter into force?  
 
Reply 
 
 The Government of Ukraine is examining the i ssue of certain local content provisions in the 
draft law No 10183 "On amendments to the law of Ukraine "On electric power industry" introduced by people's deputies.  We are open for cooperation w ith the Verkhovna Rada of Ukraine in order to 
resolve the issue in  accordance with the WTO regulations.  
  Besides, as regular elections of Verkhovna Ra da of Ukraine were assigned on 28.10.2012, it's 
highly unlikely that the draft law No 10183 be adopted till the end of 2012.  
 On the other hand, should the Law be directed by the President of Ukraine to the Government 
of Ukraine for expertise, the Cabinet of Ministers may propose to set a veto.   In addition, today the Government of Ukrain e is considering postponement of requirements 
for commencement of construction and commission ing of electric power plants from renewable 
sources, as well as the certain local content in the co st of such facilities, taking into account the actual 
duration of construction projects and the possibility of  supply of domestic raw materials, assets, works 
and services for these projects.  
Question 2 
 
We would also appreciate that Ukraine circu lates an English translation of the draft 
legislation under consideration. 
                                                      
1 G/TRIMS/W/109.   G/TRIMS/W/115 
Page 2  
 
  Reply 
 
 Given that the authors of the draft law No 10183 are some people's deputies of Ukraine, the 
Cabinet of Ministers of Ukraine will consider the possibility of providing the draft translation in 
English to the EU side.  
Question 3 
 
Could Ukraine inform whether the relevant measures would be conferred any 
retroactive effect?  In particular, would those am endments be applicable to investments started 
before the entry into force of the new Law?  If  the relevant measures were entitled to have 
retroactive effect, there could be substantial problems for investors in pursuing their activities and a deterioration of the general business climate. 
 Reply 
 
As provided by the current version of Art. 17- 1 of the Law of Ukraine "On Electricity" and 
the provisions of the draft law No 10183, "the state guarantees that entities that generate electricity 
from alternative energy sources on the commissioned pow er plants will use such stimulating order for 
electricity production from alternative energy sour ces, that established in accordance with the 
provisions of this Article on the date of commissi oning of power facilities which produce electricity 
from alternative energy sources.  In case of modifi cations of the law governing the stimulating order 
for electricity production from alternative ener gy sources, entities may choose a new order of 
stimulation".    
 
So there is no reason to talk about any signs of the legislation retroactive effect of the 
provisions on "green tariff".  
 
 
 
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