WORLD TRADE  
ORGANIZATION  G/SCM/N/186/UKR 
3 July 2009 
 (09-3266) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 of the  
GATT 1994 and Article 25 of the Agreement on  
Subsidies and Countervailing Measures  
 
UKRAINE 
  
 The following notification, dated 2 July 2009, is being circulated at the request of the 
Delegation of Ukraine.    
_______________ 
 G/SCM/N/186/UKR 
Page 2  
 
  TABLE OF CONTENTS 
 
   Page
 
INTRODUCTION................................................................................................................... ...............3 
I. PART I.  HORIZONTAL PROGRAMMES ..........................................................................4 
1. Special Economic Zones and Priority Territories..................................................................4 
2. Technological Parks......................................................................................................... .........4 
3. Horizontal Program "Aid to small and medium-sized businesses in realization of 
investment projects by me ans of credit support" ..................................................................5 
4. Horizontal program "En ergy-saving measures aid".............................................................6 
5. Realization of advanced energy-saving technologies and alternative fuel sources 
production technologies........................................................................................................ ....7 
II. PART II.  SECT ORAL PROGRAMMES ..............................................................................8 
1. Shipbuilding ................................................................................................................ ..............9 
2. Automotive Sector........................................................................................................... ........10 
3. Aircraft .................................................................................................................... ................11 
4. Machine building for agro-industry......................................................................................12 5. Space Industry.............................................................................................................. ...........13 
6. Coal Mining................................................................................................................. ............14 
7. Book-Publishing ............................................................................................................. .........17 
 
  G/SCM/N/186/UKR 
 Page 3 
 
 
  INTRODUCTION 
 This updated notification was prepared pursuant to Article XVI:1 of the GATT 1994 and 
Article 25 of the Agreement on Subsid ies and Countervailing Measures.   
  In preparing this notification, Ukraine has attempted to achieve the maximum transparency 
with regard to aid and support measur es granted within its territory.   
 
This notification relates to subsidies granted in  2008, and provides statistical information at 
least up to the end of 2008.    
 In preparing this notification, Ukraine has taken into account applicable "General Rules" 
listed in G/SCM/6/Rev.1.   G/SCM/N/186/UKR 
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  I. PART I.  HORIZONTAL PROGRAMMES 
1. Special Economic Zones and Priority Territories 
 In 2008 the investment projects in SEZ and Priority Territories are implemented under the 
regular tax regime.    
 During reporting period there were not any cha nges in respect to policy/objective, background 
and authority, form of the subsidy, to whom a nd how the subsidy is provided, in comparison with 
information given in G/SCM/N/155/UKR of 26 May 2008.     Some tax privileges were granted in 2008 to so me enterprises by judgement of courts only.   
 
Total amount
 
 
Form of Subsidy SEZ, million UAH Priority Territories, 
million UAH 
Exemption from income tax 0 2,052 
Exemption from import duties 0 2,052 
Deferment of VAT 35,964 0 
Exemption from land tax 0 0 
 
2. Technological Parks 
 During reporting period there were not any cha nges in respect to policy/objective, background 
and authority, form of the subsidy, to whom a nd how the subsidy is provided, in comparison with 
information given in G/SCM/N/155/UKR of 26 May 2008.     The only thing is to be taken into consideration that for 2008 there has not been foreseen any 
funds in the State Budget for credit support.   
  Amount
 
 
 2008, 
million UAH 
Exemption from income tax (usage of 
sums of income tax that are 
accumulated on a special accounts of parks and projects) 1,025 
Credit support (Full or partial 
compensation of interest paid by park's project implementation authority to commercial banks and other finance & 
credit institutions for credits) Not applied 
Exemption from payment of import 
duties 5,2 
VAT payment deferral - 
 
 Duration  
  The favourable regime for technological parks established for the period of 15 years.   
  G/SCM/N/186/UKR 
 Page 5 
 
 
   Trade effects  
  It is not possible to estimate what, if any,  trade effects may result from the use of the 
programs described.  3. Horizontal Program "Aid to small and medium-sized businesses in realization of 
investment projects by means of credit support" 
 Policy objective and/or purpose
 
  Encourage investment, promotion of small and medium-sized businesses.   
 
 Background and authority
 
  The basis enabling authority for the establishment and functioning of the technological parks is contained in:   
 
The sum of 32 000,0 thousand UAH is foreseen by the Law of Ukraine "On the State Budget 
of Ukraine for 2008 and amendments to some other legislative acts of Ukraine" of 28 December 2008 
No. 107-V І.   
 
The order of application of funds is defined by  the Cabinet of Ministers of Ukraine according 
to the Decree of the Cabinet of Ministries of Ukraine of 9 April 2008 No. 335.   
 
 Form
 
 
Credit support 
 
The funds from the state budget are used for compensation of the interest rate paid in 2008 on 
credits in the amount of 1.2 of the discount rate  of the National Bank of Ukraine on the date of 
charging interests for credits at the condition:    
- the amount of the credit, for which interest rate compensation is foreseen, should not 
exceed 250 thousand UAH for individuals a nd small businesses and 2500 thousand UAH 
for medium-sized businesses;   
- the amount of private means in co-financing of the investment project should not make 
less than 20 per cent of the project's cost.   
 
 The compensation is not paid to the borrowers , who already receive financial support in the 
frame of other programs financed from the state budget or get money from international financial 
organizations.     Beneficiaries
 
 
 The right for compensation is granted on a competition basis.    
For participation in the competition are adm itted small and medium-sized businesses, which 
have obtained bank credits for realization of invest ment projects not later than 20 November of the 
current year (Order of the State Committee fo r Regulatory Policy and Entrepreneurship of 
24 April 2008 No. 51).   G/SCM/N/186/UKR 
Page 6  
 
  Selection criteria are the following:   
 
• payoff period of the project; 
• profit margins and production profitability;  
• creation of new jobs and expenses for creation of one work place; 
• conformity of the investment project to the priorities defined by the regional strategies of the 
economic and social programs development;   
• furtherance of the investment project for en suring of the conduction in Ukraine of EURO-
2012 football championship; 
• introduction of energy-saving technologies; 
• expansion of production for 1 UAH of th e invested state budget money.   
  Amount of the received support
 
 
Form 2008, million UAH  
Compensation of the interest 
rate on credits 29,368 
 
 Duration  
 
 During 2008.     Trade effects estimation statistics
 
 
Amount produced by the 
enterprises which have got support2008 
No data available 
 
4. Horizontal program "Energy-saving measures aid" 
 Policy objective and/or purpose  
  To encourage implementation of energy-saving technologies.   
 
 Background and authority
 
 
The sum of 13,0 million UAH is foreseen by the Law of Ukraine "On the State Budget of 
Ukraine for 2008 and amendments to some other legi slative acts of Ukraine" of 28 December 2008 
No. 107-V І.   
 
The Order of application in 2008 of funds foreseen in the state budget for energy-saving 
measures aid is defined by the Decree of the Ca binet of Ministries of Ukraine of 26 March 2008 
No. 249.   
 
 Form  
 
Compensation of the interest rate paid on credits  
 
Compensation is provided for the interest rates actually paid in 2008 on credits in the amount 
of the discount rate of the National Bank of Ukrain e on the date of charging interests for credits, but 
not more than interest rate on credits used by  businesses for financing energy-saving measures, 
including realization of energy-effective projects.    G/SCM/N/186/UKR 
 Page 7 
 
 
   Beneficiaries  
 
Businesses, which used the credits for fina ncing of energy-saving measures, including 
realization of energy-effective projects and paid in 2008 interest rates on these credits.   
 
Compensation is granted on a competition basis.  Selection criteria are the following:   
 
а) production of energy-effective devices and products, which provide for efficient use 
of fuel and energy resources in comparison to other variants of use and production of 
the products with the same consumption le vel and analogical technical and economic 
performances.   
b) reduction of energy consumpti on at products manufacturing.   
c) use of alternative fuel sources and recoverable energy sources.   
  Amount of the received support
 
 
Form 2008, million UAH  
Compensation of the interest rate on credits 0,3285  
 
 Duration  
 
 During 2008.     Trade effects estimation statistics
 
 
 It is not possible to estimate what, if any, tr ade effects may result from the use of the program 
described.    
5. Realization of advanced energy-saving technologies and alternative fuel sources 
production technologies 
 Policy objective and/or purpose
 
 
 To encourage research and development of new technologies, realization of advanced energy-
saving technologies and alternative fu el sources production technologies.   
  Background and authority
 
 
The sum of 167000,0 thousand UAH is foreseen by the Law "On the State Budget of Ukraine 
for 2008 and amendments to some other legisla tive acts of Ukraine" of 28 December 2008 No.107-
VІ.   
 
However, in 2008 the Cabinet of Ministers has not adopted a Decree defining the order of 
application of the foreseen funds.  For this r eason the mentioned above budget program was not 
introduced.   G/SCM/N/186/UKR 
Page 8  
 
  II. PART II.  SECTORAL PROGRAMMES 
 The legislative bases for Ukraine's sect oral assistance programs are found in:   
 
- Enabling legislation specific to the sector itself (shipbuilding, automotive etc.) cited 
below for each Sector;  and 
- The law applying a particular tax measure  under for which assistance is provided 
(exemptions or deferral for import duties, VAT etc.). 
- Law on state budget for current year.   
  The Sector specific enabling legislation is identified under each of the supported sectors listed 
below.  The relevant tax laws providing bene fits to enterprises in supported sectors are:   
 
- Law of Ukraine "On the State Budget of Ukra ine for 2008 and amendmen ts to some other 
legislative acts of Ukraine" of 28 December 2008 No. 107-V І.   
 
 Import duties 
 
- Law of Ukraine "On Common Customs Tari ff" 5 February 1992 No. 2097-XII (with 
changes and amendments);  and 
- Law of Ukraine "On Customs Tariff of Ukra ine" as of 5 April 2001 No. 2371-III (with 
changes and amendments);   
- Law of Ukraine of 31 May 2007 No. 1109-V "O n amendments to the Customs Tariff of 
Ukraine".   
  VAT  
- Law of Ukraine "On Value Added Tax" as of 3 April 1997 No. 168/97 (with changes and 
amendments).   
 
Excise 
 
- Decree of the Cabinet of Ministers of Ukraine "On Excise Duty" as of 
26 December 1992, No. 18-92 (with changes and amendments);  and 
- Law of Ukraine "On Excise Duty and Import Du ty Rates for Some of Vehicles" as of 
24 May 1996 No. 216/96-VR (with changes and amendments).   
  Income Tax 
 
- Law of Ukraine "On Corporate Income Tax" as of 28 December 1994 No. 334/94-VR 
(with changes and amendments).   
  Land Tax  
- Law of Ukraine "On Land Tax" as of 3 Ju ly 1992 No. 2535-XII (with changes and 
amendments).    G/SCM/N/186/UKR 
 Page 9 
 
 
  1. Shipbuilding 
 Policy objective and/or purpose  
  The overall objectives for providing assistance to the shipbuilding industry are to:    
- Promote better use of the industry's exis ting production and Research and Development 
facilities;  and  
- Encourage new investment in the industr y to achieve greater efficiency and 
competitiveness.   
 
 Background and authority
 
  Subsidy measures are provided under the Law of  Ukraine "On Measures of State Support for 
the Ship-Building Industry in Ukraine" as of 15 June 2004 No. 1766-IV.    
 Decree of the Cabinet of Ministers of Ukraine as of 5 September 2007 No. 1102 approving 
changes to the list of enterprises-beneficiar ies of support of shipbuilding industry.   
  Form
 
  Deferral of Corporate Income Tax.   
 
 At option of an eligible shipbuilder, adva nce payments received from a customer and 
earmarked loans received for financing of seagoing crafts, river boats and other floating means may 
be placed in a special account and be exempt from withholding tax.  Funds in such accounts may only 
be used to meet costs associat ed with fulfilling the contract unde r which the advance payments are 
made or earmarked loans are received.  In the fiscal year in which the builder delivers the ship to the 
customer, payments to and from the special account  are included in gross revenue/expenditure for the 
purpose of calculating profit for corporate income tax.     Exemption from land tax  
 Since 1 January 2008 this measure has not been applied.   
  Credit support   Since 1 January 2005, the support of seagoing cr afts, river boats and other floating means, 
building and reconstruction of basic production a ssets of shipbuilding industry was exercised by 
partial compensation of the interest paid to comme rcial banks for the provided credits.  Every year a 
certain budget allocation is foreseen by the Law of  Ukraine "On State Budget" for providing such a 
support.     The procedure of use of such allocations from the State Budget is annually determined by the 
Cabinet of Ministers of Ukraine.   
  Though, in 2008 no allocations we re made for this purpose.   
  Exemption from import duties 
 
 In 2008 this measure was not applied.   G/SCM/N/186/UKR 
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  Beneficiaries
 
  The Cabinet of Ministers of Ukraine approv es a list of eligible shipbuilding enterprises 
according to the order determined in the Decree of Cabinet of Ministers of Ukraine of 12 July 2005, 
No. 555.  The current approved list of enterprises appears in the Resolution of the Cabinet of 
Ministers of Ukraine of 21 December 2005, No. 1256 (last changes – by Decree of Cabinet of 
Ministers of Ukraine of 5 September 2007, No. 1102).     Amount
 
 
 2008, million 
UAH 
Deferral of Corporate Income Tax 1,68 
Exemption from import duties Not applied 
Exemption from land tax Not applied 
Credit support Not applied 
 
 Duration  
  Until 1 January 2012.   
 
 Statistics for evaluation of trade effect
 
 
Amount of products 2008, million 
UAH 
Seagoing crafts and other floating means n/a 
 
2. Automotive Sector 
 During reporting period there were not any cha nges in respect to policy/objective, background 
and authority, form of the subsidy, in comparis on with information given in G/SCM/N/155/UKR of 
26 May 2008.     As regards to whom and how the subsidy is pr ovided there only difference is that in 2008 the 
exemption from land tax was not applied.    
 In 2008 the Law of Ukraine "On Development of the Motor-Car Industry in Ukraine" of 
18 March 2004, No. 1624-IV (with  changes and amendments) was in force till 31 December 2008 but 
as all tax privileges have been withdrawn the amount of subsidy makes 0.    
Amount
 
 
 2008, million 
UAH 
Exemption from Corporate Income Tax 0 
Exemption from import duties 0 
Exemption from VAT on imports  0 
Zero rates of VAT on domestic sales 0 
Exemption from land tax 0 
Exemption from Excise taxes on domestic sales 0  G/SCM/N/186/UKR 
 Page 11 
 
 
   Duration  
  Until 31 December 2008.    
3. Aircraft 
 Policy objective and/or purpose
 
  The overall objective for providing aid to the ai rcraft construction industry is to promote an 
efficient use of existing production, research and de velopment facilities and to encourage investment 
to provide for modernization and great er competitiveness of the industry.   
 
 Background and authority
 
  The aid is provided in the frame of the Na tional complex program of the development of 
aviation industry until 2010.  According to the Law of Ukraine of 28 December 2008 No. 107-V І, 
590 000,0 thousand UAH were foreseen in the state budget.   
 
The Decree of the Cabinet of Ministries of  Ukraine of 07 May 2008 No. 441 approves the 
Order of application in 2008 of funds foreseen in  the state budget for realization of the National 
complex program of the development of aviati on industry until 2010, including credit support.   
  Form
 
 
 Credit support  
  Support is provided by partial compensation of the interest paid to commercial banks in 2008 
for the provided intermediate (up to three years) or long-term (up to five years) credits, used in 2003 – 
2007 and in 2008 for full-scale production of АN-148 and АN-74 aircrafts.   
 
Compensation is provided in the amount of the discount rate of the National Bank of Ukraine 
on the date of charging interests for credits, but not more than interest rate on used credits.   
 
 Beneficiaries
 
  Enterprises and organizations of aircraft-build ing industry (projects performer), that used 
credits for full-scale production of АN-148 and АN-74 aircrafts.   
 
Amount
 
 
 2008, million UAH. 
Credit support 22,4 
 
 Duration  
 
 During 2008.     Statistics for estimation of trade effects
 
 
 2008, million UAH 
Production 5300,0 G/SCM/N/186/UKR 
Page 12  
 
  4. Machine building for agro-industry 
 Policy objective and/or purpose
 
  Supporting.    
 Background and authority
 
  Support of innovations and investments in th e branch, creation of new technical devices, 
resource- and energy-saving technologies, technical re-equipment.    
 Background and authority
 
 
Support is provided according to the Decree of the Cabinet of Ministers of Ukraine of 
11 March 08, No. 191 approving the Order of applicati on in 2008 of funds foreseen in the state budget 
for state aid of national machine-building for agro industry, including credits support.   
  Form
 
 
 Credit support  
  Support is provided by compensation of the inte rests paid to banks for credit, which were 
used by machine-building and agro industry enterp rises for realization of the investment projects 
meant for technical re-equipment of the mentioned enterprises.    
Support is provided by compensation of the in terest paid to the banks for the provided 
intermediate (up to three years) or long-term (up to  five years) credits in the amount of the discount 
rate of the National Bank of Ukraine on the date of  charging interests for credits, but not more than 
interest rate on credits used.  Compensation is prov ided at the condition that the interest rate on bank 
credits does not exceed 1.5 of the discount rate  of the National Bank of Ukraine on the date 
concluding credit agreement.   
 
 Beneficiaries
 
 
Agro industry machine-building enterprises, whic h implement investment project and meet the 
following requirements:   
 
• Conducting economic activity for not less than three years;  
• Absence of wage indebtedness;  
• Absence of debts before the State budget for the used credits, for tax or other compulsory 
payments;  
• Sufficient current assets for ongoing activities;   
• Discharging obligations as to paying off and maintaining the credit;  
• Partial financing of the investment project. 
  Selection of investment projects is conducted by Ministry of agrarian police on a competition basis.  The project should meet the following criteria:   
 
• Conformance of the project to the directions and tasks of the State Program of the national 
agro industry machine-building development fo r 2007 – 2010, which has been approved by 
the Decree of the Cabinet of Ministers of Ukraine of 26 September 2007 No. 1181;   
• Maximum effective use of the state budget;    G/SCM/N/186/UKR 
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  • Project efficiency (profit capacity, payoff period,  creation of new jobs, receipt of payments 
into treasury);  
• Existence of an agreement between a project ex ecutor and a bank on the intention of project 
lending;   
• Existence of the conclusion of the invest ment project complex state expertise.   
  Amount
 
 
 2008, million UAH. 
Credit support 0 
 
 Duration  
 
 During 2008.   
 
5. Space Industry 
 Policy objective and/or purpose  
 
 Assistance is intended to preserve and effectiv ely employ the existing scientific, research, and 
production potential of Ukraine's space industry as a priority component of the high technology sector 
and to encourage investment as to ensure the future viability of the industry.   
  Background and authority
 
 
 Preferential tax treatment for eligible enterpri ses in the space industry is provided for in the 
Law of Ukraine "On State Support of Space Activity" No. 1559-III of 16 March 2000.   
 
According to the Law of Ukraine "On the St ate Budget of Ukraine for 2008 and amendments 
to some other legislative acts of Ukraine" of 28 December 2008 No. 107-V І, the sum of 
250 000, 0 thousand UAH has also been foreseen for th e development of space industry in the State 
Budget of Ukraine for 2008.   
 
The order of application of funds meant for the development of space industry and 
manufacturing of space technology is defined by the Decree of the Cabinet of Ministries of Ukraine of 
02 April 2008 No. 305.    
 
During reporting period there were not any chang es in respect to policy/objective, background 
and authority, form of the subsidy, to whom a nd how the subsidy is provided, in comparison with 
information given in G/SCM/N/155/UKR of 26 May 2008.    
Beneficiaries
 
 
 The agents of the space industry which realize their activity according to the Law of Ukraine 
"On Space Activities" (with changes and amendm ents) of 15 November 1996, No. 502/96.   
 
According to the Decree of the Cabinet of Mini sters of Ukraine of 02 April 2008 No. 305 the 
performers of the measures are the enterprises, ins titutions and organizations, irrespective of patterns 
of ownership, which possess a licence on conducti ng space activity and won a tender on purchasing 
goods, conducting works and providing ser vices as required by legislation.   G/SCM/N/186/UKR 
Page 14  
 
   Amount
 
 
 2008, million UAH 
Accelerated amortization 0,075 
Exemption from import 
duties Not applied 
Exemption from VAT on 
imports  Not applied 
Exemption from land tax Not applied 
Exemption from VAT on 
domestic sales Not applied 
 
 Duration  
  Until 1 January 2009.     Statistics for estimation of trade effects
 
 
Amount of products 2008, million 
UAH 
Amount of products in established prices n/a 
 
6. Coal Mining 
 Policy objective and/or purpose  
  To assist in restructuring and modernization in the coal mining sector, raising industrial safety, labour safety improvement.   
 
 Background and authority
 
 
Since September 2003 State Support to Coal Mining Enterprises had been provided in 
accordance with new "Procedure of provision and iden tification of the state support to coal producers 
for partial refund of expenses from the production pr ice, as well as construction and technical re-
equipment of black coal, brown coal and peat pr oducers" that was approved by the Resolution the 
Cabinet of Ministers of Ukraine of 21 August 2 003 No. 1311 (with changes and amendments).   
 
According to the Decree of the Cabinet of Ministers of Ukraine of 05 March 2008 No. 129 
defining the Order of application of state funds mean t for state support of black coal, brown coal and 
peat producers, in 2008 there has been provided State Support for construction and technical re-
equipment of coal mining enterprises.    
According to the Decree of the Cabinet of Ministers of Ukraine of 27 February 2008 
No. 108 there has been provided support to the co al mining enterprises (including brown coal mining 
enterprises) for partial covering the expen ses on production cost, including securing warranty 
obligations as to budgetary credits reimbursement a nd repaying past-due (previous years) debts on 
electricity.    
The volume of the program is defined according to the law of Ukraine on the State Budget 
of Ukraine for 2008.    G/SCM/N/186/UKR 
 Page 15 
 
 
  According to the Law of Ukraine "On the St ate Budget of Ukraine for 2008 and amendments 
to some other legislative acts of Ukraine" of 28 December 2008 No. 107-V І.the sum of 7 169,7 
million UAH has been foreseen fo r financing coal mining industry  in 2008, of which by budget 
programs:   
 
- State support to the coal mining enterprises (including brown coal mining enterprises) for 
partial covering the expenses on production co st, including securing warranty obligations 
as to budgetary credits reimbursement and re paying past-due (previous years) debts on 
electricity in a sum of 1 019 403,3 thousand UAH - 3 831,2 million UAH;   
- State support to black coal, brown coal and p eat producers for construction and technical 
re-equipment and overhaul of mining equipm ent, of which 25 000,0 thousand UAH are 
meant for peat producing branch and 1 980,1 million UAH are foreseen for credits aid 
and technical re-equipment of coal mining and peat producing enterprises.   
 
With regard to some amendments made, the an nual planned volume of financing of mining 
industry in 2008 make 7 737,7 million UAH,  of which by budget programs:   
 
- State support to the coal mining enterprises (including brown coal mining enterprises) for 
partial covering the expenses on production co st, including securing warranty obligations 
as to budgetary credits reimbursement and re paying past-due (previous years) debts on 
electricity in a sum of 1 019 403,3 thousand UAH – 5 044,2 million UAH; 
- State support to black coal, brown coal and p eat producers for construction and technical 
re-equipment and overhaul of mining equipmen t, including peat producing branch makes 
25 000,0 thousand UAH and 1 566,1 million UAH are foreseen for credits aid and 
technical re-equipment of coal mining and peat producing enterprises. 
  Form
 
  Granting funds for partial covering production costs
 
 
According to the Decree of the Cabinet of Mi nisters of Ukraine of 27 February 2008 No. 108 
the coal mining enterprises (including brawn coal producers) use the budget money for labour payments and for compulsory payments, such as salar ies, electricity and securing warranty obligations 
as to reimbursement of budgetary credits, recei ved for discharge the salary indebtedness.   
 
The funds are distributed between the state en terprises, which allocate the money on partial 
covering the expenses on production cost of their ow n coal products for 1 Hryvna cost of such a 
product, at the condition that the volume of the pr oduced product (by the anticipated sale price) does 
not cover the cost of production.   
 
 State support to constructio n and technical re-equipment
 
  The state or public ownership enterprises are granted state funds as permanent loan, while the 
enterprises of the other forms of ownership are gi ven funds in the form of the credits for capital 
construction for the period of not longer than three or in some cases five years (The Resolution of the 
Cabinet of Ministers of Ukraine of 27 December  2001, No. 1764 "On approval of the Procedure for 
State Financing of Capital Construction" , with changes and amendments).   
 
The funds are used for:   
 
1) financing of capital construction proj ects placed in operation in 2007 and those 
projects which are not less than 50 per cent ready for operation;   G/SCM/N/186/UKR 
Page 16  
 
  2) for financing of conservation of uncomplet ed coal constructions which are not less 
than 60 per cent ready;  
3) financing of technical re-equipment of coal producing enterprises; 
4) financing of major repairs of mining e quipment which requires such repairs either 
according to technical documentation or due to emergency failure.   
 
Credit support
 
 
According to the Decree of the Cabinet of Mi nisters of Ukraine of 5 March 2008 No. 129 it 
is also foreseen the use of money for partial paym ents of interest rates on bank credits used for 
financing of mines, shafts and levels construc tion and purchasing of mining equipment and fixed 
installations.    
The support is provided in the amount:   
 
- of the discount rate of the National Bank of Ukraine on the date of charging interests for 
intermediate (up to three years) credits, whic h have been granted in 2007 according to the 
Decree of the Cabinet of Ministers of Ukrain e of 14 February 2007 No. 230 "On approval 
of the Order of application of the state budget foreseen in 2007 for credit aid for construction and technical re-equipment of coal  mining and peat producing enterprises;   
 
- of the discount rate of the National Bank of Ukraine on the date of charging interests for 
credits at the condition that the interest rate  on credit does not exceed 1,45 of the discount 
rate of the National Bank of Ukraine on l ong-term (over one year) credit which will be 
received in 2008 at the condition that:   
 
• supply of mining equipment and fixed insta llation is provided by its manufacturer.   
• construction of mines, shafts and leve ls as well as purchasing of mining equipment 
and fixed installations for which credit attrac tion is planned, shoul d be included to the 
properly approved by the Ministry of coal industry List of the objects, which are 
defined by the Sectoral programs of construction and technical re-equipment of coal 
mining and peat producing enterprises.   
  Beneficiaries
 
 
 The program concerns black coal, brown co al and peat producing enterprises of state 
ownership.     The program does not apply to enterprises subject to liquidation.     List of eligible enterprises is drawn up by the Ministry of Mining on the basis of economic 
indicators of enterprises activity and their plans for respective year.   
  Amount
 
 
 2008, million 
UAH 
Partial refund of expenses from the production price 4 843,0 
Fulfilment of guarantee bonds as to 
budget loan return 81,9  G/SCM/N/186/UKR 
 Page 17 
 
 
   2008, million 
UAH 
Support of construction, technical re-equipment and major repairs 1 519,3 
Credit support aimed for construction 
and technical re-equipment 16,6 
 
 Duration  
  Is not determined, on the annual basis.     Statistics for estimation of trade effects
 
 
Amount produced by the 
enterprises which have got support 2008, million 
tons 
Black coal  44,9 
Brown coal n/a 
Peat n/a 
 
7. Book-Publishing 
 Policy objective and/or purpose  
  Overcoming of the crisis in this sector a nd providing for developmen t of Ukrainian book-
publishing.    
 Background and authority
 
  Support is provided by the Law of Ukraine "On State Support of Book-publishing in Ukraine" 
of 6 March 2003, No. 601-IV (with changes a nd amendments) and the Law of Ukraine of 
20 November 2003, No. 1300-IV and of 18 Septem ber 2008 No. 521-VI "On amendments to some 
laws of Ukraine concerning state support to book-publishing in Ukraine".   
  During reporting period there were not any changes in respect to policy/objective, form of the subsidy, to whom and how the subsidy is provided, in compar ison with information given in 
G/SCM/N/155/UKR of 26 May 2008.    
 Amount
 
 
 2008 р., million 
UAH. 
Exemption from 
Corporate Income Tax40,2 
Exemption from import 
duties35,5 
Exemption from VAT 
on imports39,5 
Exemption from VAT 
on domestic sales615,1 
 G/SCM/N/186/UKR 
Page 18  
 
   Duration
 
  From 1 January 2004 till 1 January 2015.     Statistic for estimation of trade effects
 
 
Production 2008  
Number of titles of 
books and brochures, 
published items759* 
Annual Edition, 
thousands items1813,98 
 
 * Of state enterprises of the State Committ ee of television and broadcasting only.   
 
 Additionally enterprises of State Stock Comp any "Ukrvydavpoligrafi ya" in 2008 published 
production of annual edition 36341,1 thousand items.   
   
__________