Legislation of Ukraine. Latest news (26.03.22)

REPORTING

  1. Individuals, private entrepreneurs, legal entities shall submit accounting, financial, audit reports and any other documents required to be submitted under current legislation in documentary and / or electronic form within three months after the cessation or abolition of the martial law for the entire period of non-reporting or obligation to submit documents.
  2. Individuals, private entrepreneurs, legal entities are not subject to administrative and / or criminal liability for failure to submit or late submission of reports and / or documents specified in para. 1 above during the period of martial law, as well as within three months after its termination.
  3. Persons who physically are not able to submit reports or documents referred to in para. 1 above within the specified period, due to the direct consequences of their participation in hostilities, do not borne administrative and / or criminal liability and shall submit reports or documents within one month from the date of termination of such consequences.
  4. Any audits on the timeliness and completeness of the submission of any reports or documents of a reporting nature are not carried out by the authorized bodies during the period of martial law.

(LAW OF UKRAINE ON PROTECTION OF INTERESTS OF SUBJECTS OF REPORTING DURING THE PERIOD OF MARTIAL LAW OR THE STATE OF WAR, No. 2115 FROM 03.03.2022)

OPERATION OF BANKING SYSTEM. TRANSACTIONS IN FOREIGN CURRENCY

Banks continue to operate subject to certain legal restrictions.

1. Сash disbursement in Ukraine from the client's account in hryvnias in the amount exceeding UAH 100 000.00 per day (excluding bank commissions) is prohibited, except for cash operations in hryvnias:

  • for payment of wages and social benefits;
  • from the accounts of enterprises and institutions that ensure the implementation of mobilization plans (tasks), the Government of Ukraine;
  • in bank branches/offices located at the territories under threat of occupation by the aggressor / occupying state (cash is disbursed within the balance of funds on the account if there is cash in the cash desk of the branch / office). The decision to disburse the cash may be taken by the Chief of the bank and may be delegated to the Chief of the bank's branch/office.

2. Сash disbursement in Ukraine from the client's account in foreign currency in the amount which in its equivalent exceeds UAH 100 000.00 per day (excluding bank commissions) is prohibited, except for cash operations in foreign currency:

  • from the accounts of enterprises and institutions that ensure the implementation of mobilization plans (tasks), the Government of Ukraine;
  • in bank branches/offices located at the territories under threat of occupation by the aggressor / occupying state (cash is disbursed within the balance of funds on the account if there is cash in the cash desk of the branch / office). The decision to disburse the cash may be taken by the Chief of the bank and may be delegated to the Chief of the bank's branch/office.

3. Сash disbursement outside Ukraine is prohibited:

  • from the client's bank account opened in Ukraine in the national currency in the amount exceeding the equivalent of UAH 100 000.00 per calendar month;
  • from the client's bank account opened in Ukraine in the foreign currency in the total amount – equivalent of UAH 100 000.00.

4. Cashless payments are made without restrictions.

5. Authorized institutions (banks, non-bank financial institutions and postal operators licensed by the NBU) are prohibited from trading currency values (including transactions on behalf of clients), except in the following cases:

  • Sale of foreign currency by customers in cash / non-cash form to banks, as well as in cash form to non-banking financial institutions and postal operators;
  • Purchase of foreign currency in cash, bank metals with physical delivery in bank branches/offices located at the territories under threat of occupation by the aggressor / occupying state by clients. The decision to carry out such operations is made by the Chief of the bank and may be delegated to the Chief of the bank's branch/office;
  • Trade of currency values between banks on a swap basis, foreign financial institutions, the National Bank of Ukraine, international financial organizations of which Ukraine is a member, and international financial organizations under agreements with which Ukraine has undertaken to ensure the legal regime provided to other international financial organizations;
  • Conducting between banks as well as banks on behalf of clients foreign exchange transactions within the 1st group of the Classifier of Foreign Currencies and Banking Metals, approved by the Resolution of the Board of NBU of 04 February 1998 No. 34;
  • Purchase of foreign currency for the purpose of conducting certain transactions in foreign currency specified in para. 14 of the NBU Resolution № 18;
  • Purchase by a bank foreign currency from another bank exclusively for its further sale to the client for the purpose of conducting transactions in foreign currency specified in paragraph 14 of the NBU Resolution № 18;
  • Swap transactions with resident clients, if the first part of the transaction involves the purchase of foreign currency from a resident client;
  • Purchase of foreign currency by clients on "forward" terms under forward contracts concluded before February 23, 2022 (including).

6. The official exchange rate of hryvnia to US dollar is fixed as of February 24, 2022. The official exchange rate of hryvnia to other foreign currencies shall be set in accordance with the requirements of the Regulation approved by the Board of NBU No. 148 from December 10, 2019, using the official exchange rate of hryvnia to the US dollar specified in this paragraph.

7. Authorized institutions are prohibited from making cross-border transfers of currency values from Ukraine / transfers of funds to correspondent accounts of non-resident banks in hryvnias / foreign currency opened in resident banks, including transfers on behalf of clients, except in cases of:

  • banks' own operations;
  • import operations of residents on the purchase of critical import goods, list of which is approved by the Cabinet of Ministers of Ukraine;
  • transactions in foreign currency of residents to fulfill obligations secured by the state guarantee;
  • MFO transactions in foreign currency as well as transactions of residents and non-residents on the transfer of funds in foreign / national currency for the purpose of settlements with the MFO or its representative office;
  • Transactions in foreign currency by residents and non-residents to carry out mobilization and other measures (needs) defined by the laws of Ukraine;
  • Operations to pay for medical expenses in foreign institutions, transfer funds for education services to the accounts of foreign educational institutions, pay for the transportation of patients, pay for expenses due to the death of individuals abroad (transportation and funeral expenses);
  • On the basis of individual permits (decisions) of the National Bank of Ukraine;
  • Transactions in favor of diplomatic missions, consular posts of Ukraine abroad;
  • Settlements (payment for goods, works and services) abroad via electronic means of payment or via electronic means of payment abroad to obtain cash;
  • Transactions from individuals' accounts to individuals' accounts using details of electronic means of payment and settlements via electronic means of payment to pay for quasi cash transactions in the amount equivalent to UAH 100,000 per one bank customer per one calendar month. Such transactions, in particular, but not exclusively, include: purchase of cryptocurrencies, replenishment of brokerage or forex accounts, replenishment of electronic wallets, purchase of gift certificates, transfers in favor of bookmakers, payment of traveler's checks.
  • Settlements of the national postal operator with international card payment systems.

8. Stop operation of expenditure transactions on the accounts of residents of the Russian Federation / Republic of Belarus, on the accounts of legal entities (except banks), the ultimate beneficial owners of which are residents of the Russian Federation / Republic of Belarus, except conducting in Ukraine:

  • Transfer of funds from such accounts to a special account of NBU to raise funds in support of the Armed Forces of Ukraine and / or to the accounts of the Cabinet of Ministers of Ukraine, ministries and other state bodies of Ukraine;
  • Payment of social benefits, wage payments, utility bills, taxes, fees and other mandatory payments.

9. It is prohibited:

  • Crediting funds to the accounts of individuals on transfers initiated via electronic means of payment issued by participants of international payment systems operating in the Russian Federation and the Republic of Belarus;
  • accept in Ukraine electronic means of payment (including transfers, settlements and cash withdrawals) issued by participants of international payment systems operating in the territory of the Russian Federation and the Republic of Belarus.

10. Authorized institutions are prohibited from carrying out any transactions in foreign currency:

  • using Russian rubles and Belarusian rubles;
  • the participant of which is a legal or natural person who has a location (registered / permanently resident) in the Russian Federation or in the Republic of Belarus;
  • to fulfill obligations to legal or natural persons who are located (registered / permanently resident) in the Russian Federation or in the Republic of Belarus.

Mentioned-above prohibitions do not apply to the transfer of funds (except for Russian rubles and Belarusian rubles):

  • to a special account of NBU to raise funds in support of the Armed Forces and / or to the accounts of the Cabinet of Ministers of Ukraine, ministries and other state bodies of Ukraine;
  • to residents' bank accounts for export of goods, refund for import of goods. In case of receipt of funds from abroad in Russian rubles / Belarusian rubles, the bank is allowed to exchange these funds on the international foreign exchange market for another currency (except Russian rubles / Belarusian rubles) for its further crediting to the client's bank accounts.
  • on the territory of Ukraine for social payments, wages, utilities, taxes, fees and other mandatory payments.

(RESOLUTION OF THE NBU BOARD “ON THE OPERATION OF THE BANKING SYSTEM DURING THE MARTIAL LAW” No. 18 FROM 24.02.2022)

DEEDS WITH RUSSIAN FEDERATION

1. A temporary moratorium (ban) is established for:

  • Fulfillment of monetary and other obligations, creditors (collectors) of which are the Russian Federation or such persons:
    • citizens of the Russian Federation;
    • legal entities established and registered under the law of the Russian Federation;
    • legal entities established and registered under the law of Ukraine, the ultimate beneficial owner, shareholder with a share in the authorized capital of 10 percent or more, that is the Russian Federation, a citizen of the Russian Federation or a legal entity established and registered under the law of the Russian Federation.

      Mentioned-above restriction does not apply to citizens of the Russian Federation / ultimate beneficial owners, shareholders residing in Ukraine legally.

  • Alienation, pledge, any other actions that have or may result in the alienation of real estate, securities, corporate rights, vehicles, aircraft and ships, inland waterway vessels by persons associated with the aggressor state, except of gratuitous alienation in favor of Ukraine.
  • Alienation, pledge, any other actions that have or may result in the alienation of real estate, securities, corporate rights, vehicles, aircraft and ships, inland waterway vessels for the benefit of persons related to the state- aggressor, or in favor of the Russian Federation.

    Deeds (including powers of attorney) concluded in violation of the moratorium defined above, including if they provide for alienation in the future, are void.

(RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE ON ENSURING THE PROTECTION OF NATIONAL INTERESTS ON FUTURE CLAIMS OF UKRAINE DUE TO THE MILITARY AGGRESSION OF RUSSIAN FEDERATION No. 187 FROM 03.03.2022)

SUSPENSION OF STATE REGISTERS

Due to the military aggression of the Russian Federation against Ukraine, State Enterprise “National Information Systems” temporarily suspended the functioning of the Unified and State Registers of the Ministry of Justice of Ukraine, the creation and maintenance of which is within the competence of the Ministry of Justice of Ukraine. In particular, the State Register of Real Property Rights does not function. The Unified State Register of Legal Entities, Individual Entrepreneurs and Public Associations is functioning partially, it is possible to obtain extracts, as well as to perform the following registration actions:

  • State registration of charitable organizations and public associations. Registration of changes to information about them.
  • Change of head of a legal entity due to his death.
  • Change of location of a legal entity.
  • Change of codes of economic activity for individual entrepreneurs.
  • Termination of individual entrepreneurs.

At the same time, the Unified Register of Powers of Attorney and the Register of Forms continue to operate, and in most regions the functioning of the Debtors' Register and the Apostille Register, the State Register of Civil Status Acts, has been restored.

REGISTRATION ACTIONS

Under martial law, state registration is carried out exclusively by state registrars and officials of the Ministry of Justice of Ukraine, its territorial bodies, which are included to the List of state registrars and officials granted access to the State Register of Real Property Rights and / or the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Associations, which shall be approved by the Ministry of Justice. As of now, there is no information about the approval of the relevant List.

State registration is carried out regardless of the location of real estate, the location of legal entities, individual entrepreneurs or public associations, unless specific restrictions (conditions) are established.

The requirements to notarize the authenticity of the signature on the document for state registration shall not apply if such a signature is executed in the presence of the state registrar.

State registration may also be carried out by sending documents by e-mail or by other means of communication in electronic form, created in compliance with the legislation on electronic trust services and on electronic documents and electronic document management.

OPERATION OF NOTARIES

The Notary Chamber of Ukraine has created a Register of notaries working during martial law. Search for a notary is available at the link http://notar.npu.ua and also in the telegram channel @NotariusUaChatBot.

Currently, notaries perform urgent notarial acts (certify powers of attorney, wills, certify the authenticity of the signature on the application for permission to travel abroad, initiate inheritance cases).

We recommend pre-check with the notary the possibility to perform each particular notarial act.

FORCE MAJEURE. PERFORMANCE OF OBLIGATIONS UNDER CONTRACTS

Ukrainian Chamber of Commerce and Industry certified force majeure that is military aggression of the Russian Federation against Ukraine, which led to the imposition of martial law from 05:30 on February 24, 2022 for 30 days, according to the Decree of the President of Ukraine from February 24, 2022 N 64/2022 "On the imposition of martial law in Ukraine".

Considering this, the Ukrainian Chamber of Commerce and Industry confirmed that these circumstances from February 24, 2022 until their official termination are extraordinary, unavoidable and objective circumstances for business entities and / or individuals under the contract, separate tax and / or other obligations/duties, performance of which occurred in accordance with the terms of the contract, agreement, legislative or other regulations but is impossible within the prescribed period due to the occurrence of the force majeure.

(LETTER OF THE UKRAINIAN CHAMBER OF COMMERCE AND INDUSTRY № 2024 / 02.0-7.1 FROM 28.02.2022)

At the same time, we draw your attention to the fact that the military aggression of the Russian Federation against Ukraine since February 24, 2022, recognized by the Ukrainian Chamber of Commerce and Industry as force majeure, does not release the parties from their obligations, but in certain cases can release the parties from liability for breach of such obligations (such as payment of penalties, damages, etc.).

If you have contracts under which proper fulfillment of obligations (timely delivery of goods, provision of services, payment, etc) is currently impossible due to the military aggression of the Russian Federation, you may take the following measures:

  1. to analyze each contract for the presence of provisions on force majeure, as well as to analyze the features of such reservations.
  2. draft a notification to the counterparty that you are not able to fulfill your obligations under a specific contract due to the force majeure. In such notification, we recommend you describe in detail how exactly this force majeure impede the fulfilling of obligations and, if possible, attach relevant evidence.
  3. Print out from the official website of the Ukrainian Chamber of Commerce and Industry letter № 2024 / 02.0-7.1 dated 28.02.2022 and together with the the notification and other documents confirming your situation, send to the counterparty by means of communication and to the address specified in such contract (if not specified in the contract, then - to the official legal address of the counterparty).

DIIA CITY

The legal and tax space of Diia City continues to accept residents, there is no information about any restrictions on the rights of Diia City residents.

ENSURING ECONOMIC ACTIVITIES UNDER MILITARY CONDITIONS

Business entities engaged in economic activities subject to licensing, obtaining a permit document, other result of public service, during martial law may carry out such activities on the basis of declaration on the conduct of economic activities in accordance with Appendix 1 to the Resolution of the Cabinet of Ministers of Ukraine No. 314, without obtaining appropriate permits, except for the types of economic activities listed in Appendix 2 to the Resolution No. 314. Declarations are subject to submission to the Ministry of Economy of Ukraine, and by business entities engaged in security activities - to the Ministry of Internal Affairs.

Business entities that have acquired the right to carry out economic activities on the basis of a declaration, not later than one month after the termination or cancellation of martial law, shall apply to the relevant licensing authorities, permitting authorities and entities providing public services and receive the relevant permits in in the manner, terms and conditions established by the law (without stopping (termination) of their activities).

For the period of martial law, the time limits for applying for public services, are suspended. From the date of termination or cancellation of martial law, the specified time limits continue, taking into account the time elapsed before they were suspended.

The validity of licenses and permits is automatically extended for the period of martial law.

(RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE № 314 OF MARCH 18, 2022)

PROVISION OF ADMINISTRATIVE SERVICES

The terms of providing administrative services and issuing permits have been suspended for the period of martial law.
The suspended terms will be renewed within one month after the cessation or termination of martial law in the relevant territory of Ukraine.

OTHER NEWS OF LEGISLATION

  • The Government offers a program - Evacuation of enterprises to the west of Ukraine.
    Registration form
  • The President of Ukraine signed:
    • Law of Ukraine "On Virtual Assets".
    • Law of Ukraine "On Cloud Services".