Law digest

President of Ukraine signed law on a moratorium on state-financed institutions bankruptcy

Ukrainian President Volodymyr Zelensky has signed the Law On Amendments to the Bankruptcy Procedures Code of Ukraine, No. 686-IX, which was adopted by Parliament back in June.

Thus, according to the signed Law, the bankruptcy proceedings of debtors – state-owned enterprises and state-financed institutions, as well as rehabilitation of such debtors before the opening of bankruptcy proceedings, are not allowed.

The Law will also allow commercial courts to conduct bankruptcy proceedings within the procedural time limits established by the Code.

A reminder that the Verkhovna Rada upheld the Draft Law No. 2276 On Amendments to the Bankruptcy Procedures Code in the second and final readings which, in particular, sets out a moratorium on the bankruptcy of state-funded institutions.

The explanatory note states that the coming into force of the new Bankruptcy Procedures Code on 21 October 2019, in the first version created a number of risks.

In particular, creditors had the opportunity to file an application to start bankruptcy proceedings against public authorities, local self-government authorities, state-financed institutions, and organizations.

But the new version of the Law excluded such a possibility.

Zelensky signed decree aimed at attracting Belarus IT specialists

President Zelensky has signed a decree to develop Ukraine’s investment potential and attract IT professionals and innovators from Belarus, as stated in Decree No. 420/2020.

According to the Decree, the Cabinet of Ministers must extend the period of temporary stay on the territory of Ukraine to Belarus citizens for up to 180 days a year. This applies to entrepreneurs, highly- qualified specialists, in particular, specialists in the field of information technology and innovation, whose immigration is in the interests of Ukraine, and members of their families. The government should also introduce a pilot project to simplify residence permits for the said categories of citizens.

At the same time, it is necessary to ensure the possibility of reducing the time for obtaining such documents to three days without the need for additional travel outside the Ukrainian territory.

It is also proposed to reduce the term of such permit issue to five days and to ensure the possibility of obtaining it under the principle of tacit consent.

According to the Decree, the procedure for registering Belarus IT specialists as individual entrepreneurs – payers of the unified tax – requires certain improvements.

It is also necessary to recognize the documents issued by the competent authorities of Belarus necessary for employment in Ukraine.

Terms of bilateral agreements in electricity market altered

A new version of Article 66 of the Law On the Electricity Market, which regulates the procedure for concluding bilateral agreements, has been in force since 17 October.

It is stipulated that the parties to a bilateral agreement that are part of one-vertically integrated entity or are affiliated with each other will, within three working days after the conclusion of the bilateral agreement, inform the regulator about:

— the subject matter of the agreement,

— the price of electricity and/or the procedure for its calculation (formation),

— the volume of electricity,

— charts of the hourly volume of the purchase and sale electricity,

— terms and procedures for the supply of electricity .

In order to ensure a sufficient level of liquidity on the electricity market, the regulator has the right to establish restrictions on the monthly volume of electricity sales under bilateral agreements between producers and other market participants that are part of one vertically-integrated enterprise or are affiliated with each other. The said limitation cannot exceed 50% of their monthly electricity sales.

The amendments are stipulated by Law No. 832-IX on the settlement of problematic issues on the electricity market adopted on 1 September. The same law stipulates that electricity for general household needs are to be paid in accordance with tariffs set for household consumers.

Double-entry e-visa for foreigners: new visa arrangement rules

The updated requirements for arrangement of an e-visa (visa in electronic form) came into effect  from 1 November. A double-entry e-visa can now be obtained for a period of up to 30 days to enter Ukraine for the following purposes: business, private, tourist, medical treatment, cultural, scientific, educational, sports activities, performance of official duties by a foreign reporter or a representative of a foreign media outlet. The e-visa contains information on the number of entries (number of entries granted by the visa).

An electronic visa is issued on the basis of a visa application, which must be filed by a foreigner before the planned trip: not earlier than three months and not later than 1 working day in advance (in the event of urgent issue of the electronic visa), or 3 working days (in the event of usual issue).

A visa application on behalf of a minor or legally incapable person is submitted by one of the parents or by another legal representative.

The application must be considered within 1 working day if it is for an urgent e-visa, and within 3 working days with the usual e-visa.

The Department of Consular Service of the Ministry of Foreign Affairs provides a translation of the visa application form and visa denial in: English, Arabic, Spanish, Chinese, Hindi.

The list of states whose citizens are issued e-visas was also updated.