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“The team was recently visible advising on a number of pharmaceutical cases. Sources agree that the team is “moving in the right direction” and are particularly impressed by its work in the pharmaceutical sector”.

 

Deregulation Particularities-2015

04.06.2015

Dmytro Shemelin, Lawyer at Ilyashev & Partners Law Firm
Source: RBC Ukraine

Business deregulation is quite a righteous matter regularly practiced by Ukrainian authorities. In our turn we will review the Law 191-VIII “On introduction of amendments into certain legal acts of Ukraine regarding simplification of business environment (deregulation)” which entered into force on 08 April, 2015. In general the new law must be regarded as promising and timely, even somewhat revolutionary. At the same time it is laying a real minefield for deterioration of the situation if easement of restrictions had been inaccurately calculated by the legislator.

  1.  Above all the Ukrainian Parliament was passing the law to suit the international rating DoingBusiness where Ukraine is planning to occupy a good place. Within a framework of this topic once again discussed is the procedure of incorporation of a new company. Duration of time required for this has been brought to the time required to deploy military operational forces – 48 hours. Unfortunately, little attention was paid to the other, more problematic, side of the problem – closing down a company – a procedure which may last from several months to several years. But are the potential investors interested in opening rather than closing their companies?
  2. Revoked was a number of authorizations, which in practice had an exceptionally ritual (and corruption) nature. So, de jure the legislator cancelled authorizations for architectural replanning of residential areas, which anyway was carried out without obtaining the authorizations. Liquidated were the licenses for collecting the scrap metals which in practice enjoyed popularity most. Among the controversial decisions is abolishment of the license for construction of objects of difficulty level 1-3.
  3. Analyzing the list of the abolished licenses one can make a conclusion that, at least in the nearest future, the Government will count on the development of agriculture and related food industry, rather than machine and heavy equipment industry. In this sphere cancelled were more than 20 different permits, simplified was the procedure of execution of the land lease agreement and notably was extended the term of its minimal duration. It only remains to hope that the consequences of such bursting liberalization have been properly calculated and that the food safety will not be harmed.
  4. The legislator has also considerably simplified work of other spheres of priority – operation of pharmacological and medical laboratories in Ukraine: abolished was the license for conducting laboratory genetic engineering activities (“within the closed system”), importing pharma-ingredients, blood sampling and storage.

 
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