CORPORATE NEWS: UKRAINE AND WORLD

• Corporate & Taxes

New resolutions of the NBU Board, creation of the OECD coordination office to support Ukraine, application of Ukraine on joining the OECD and a new Register in the UK: corporate news for July

Today, there are so many important events in corporate law that it is almost impossible to monitor them all. Once a month, Interlegal lawyers will select for Mind.ua the most important legislative innovations being useful to you and your business.

In Ukraine

Resolutions of the Board of the National Bank of Ukraine

Qualified electronic trust services provided in the EU are currently recognized in the banking and payment spheres of Ukraine.

Resolution of the Board of the National Bank of Ukraine No. 140 dated July 7, 2022, “On recognition of foreign qualified electronic trust services in the Ukrainian banking system and in the process of cost remittance” entered into force on July 12, 2022.

Starting from July 12, Ukrainian banks, branches of foreign banks and members of payment systems shall recognize:

- qualified electronic signatures and/or qualified electronic seals created in accordance with the EU legislation;

- means of fixing qualified electronic signature or qualified electronic seal duly certified in accordance with the EU legislation.

Such decision was made with regards to acceleration of the Ukrainian banking system integration into the EU Digital Single Market and development of a single financial space.

The NBU also stated that this Resolution will remain valid until Ukraine and the European Union enter into a treaty on mutual recognition of qualified electronic trust services.

The National Bank of Ukraine also implemented some more innovations:

1. Limit for cash withdrawal from UAH payment cards abroad has been changed from monthly to weekly range, namely 12.5 thousand UAH (equivalent) for seven calendar days.

2. Monthly limit on P2P transfers of citizens abroad from UAH payment cards of Ukrainian banks has been reduced from 100,000 UAH to 30,000 UAH.

3. Monthly limit has been fixed for payments abroad by means of UAH payment cards in the amount of 100,000 UAH from the client’s all bank accounts opened in the national currency.

Worldwide

On July 4-5, at the International Conference on the Reconstruction of Ukraine in Lugano, the Secretary General of the Organization for Economic Co-operation and Development (OECD) announced creation of a coordination office in Paris to support Ukraine, to be moved to Kyiv soon.

He states that OECD approach is based on three main principles: Ukraine leadership in recovery process; cooperation and coordination of all international partners; sharing experience and financial management.

One of the goals of Ukraine recovery process is macroeconomic stabilization jointly with recovery and reconstruction of cities based on green reconstruction, i.e. in accordance with international environmental standards.

Today the Ukrainian government estimates recovery plan for the next 10 years at 750 billion USD.

In turn, on July 5, at the above Conference in Lugano, Denys Shmyhal, the Prime Minister of Ukraine, submitted application for joining the Organization for Economic Co-operation and Development. He states that the current support and further work on Ukraine recovery and joining the EU, the commencement whereof was supported by all EU member states, will be based on completion of structural reforms in Ukraine, i.e. the industry where OECD support has fundamental importance.

He also emphasized that Ukraine shares all the OECD goals and values and seeks to join it as soon as possible. Prime Minister believes that membership in the OECD is one of the keystones of Ukraine successful recovery and development.

Head of the government emphasizes, “We hope that the OECD Council will consider this document so that we could join as soon as possible. If we are united in protection, we are united in recovery”.

A new register will come

On March 15, 2022, the Law “On Economic Crimes” entered into force in the United Kingdom, which provides for creation of the Register of Overseas Entities.

The new Register will require foreign entities that own land in the UK to declare their beneficial owners or directors. Foreign companies will not be able to buy, to sell, to transfer or to lease land in the UK unless they are registered with the Companies Office.

Foreign entities that already own land in the UK will have 6 months to register their beneficial owners or directors.

After the foreign legal entity registers and provides all the necessary information, the Companies Office will issue ID for the foreign legal entity.

Foreign companies shall update information every year, as well as shall update the data in case of land purchase, sale or lease.

Failure to register (or providing false information) will be treated as a criminal offense and will disqualify the entity from buying or selling property in the UK in future.

Also, land transfer and violation of registration conditions will be treated as a criminal offense both for the entity and its responsible officers (director and others), which shall, in particular, impose fine up to ?500 per day or imprisonment up to 5 years.

Work on the new Register is progressing apace, while the Companies Office and the UK Land Cadasters are cooperating with the Department for Business, Energy and Industrial Strategy (BEIS) in order to facilitate launching the new Register as soon as possible.

Irina Voyevodina

voyevodina@interlegal.com.ua

Alyona Remenyak

remenyak@interlegal.com.ua