Legislative news digest: LEGAL HOTLINE 17.10.2019

Legal Regulation of Protection of Geographic Names Improved

President of Ukraine Volodymyr Zelenskyy has signed the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Improving the Legal Protection of Geographic Names”.

In particular, the Law provides for amendments to the Economic and Civil Codes of Ukraine and the Law of Ukraine “On Protecting the Rights to the Designation of Origin of the Goods”.

The purpose of the Law is to implement the EU laws in the area of legal protection of geographic names. Pursuant to the Law, legal protection is provided to geographic names based on registration thereof, in accordance with the procedure set by this Law or with international treaties of Ukraine. Moreover, the Law expands the list of the rights arising out of registration of the geographic name and the list of the unlawful actions from which the registered geographic name is protected.

The Law enters into force on 1 January 2020.

Procedure for Establishing Special Conditions for Food and Feed Stuff Import Prescribed

In its Resolution dated 9 October 2019 No. 869, the Cabinet of Ministers of Ukraine approved the Procedure for Establishing Special Conditions for Food and Feed Import.

The Procedure establishes the special food and feed import conditions in accordance with the Law of Ukraine “On the State Control over Compliance with the Laws on the Food Products, Feed, By-Products of Animal Origin, Animal Health and Welfare”.

According to the Procedure, the special import conditions are established and revoked by the decision of the Ministry of Economic Development and Trade based on the proposal by the State Service of Ukraine on Food Safety and Consumer Protection.

The Procedure sets the requirements to the contents of the proposal regarding the need to establish the special import conditions, the procedure for adopting and publishing decisions on establishment and revocation of the special import conditions as well as the non-exhaustive list of types of the special conditions that may be established for food and feed import.

Application of National Standards Will Be Voluntary

President of Ukraine Volodymyr Zelenskyy has signed the Law of Ukraine “On Amending Certain Legislative Acts of Ukraine Regarding Adoption of the Law of Ukraine “On the Standardisation”.

According to the law, the national standards are applied within the territory of Ukraine on a voluntary basis.

This Law enters into force in a year upon being published. The Law has not been officially published as of today.

Law on Stimulation of Investment Activity in Ukraine Signed by the President of Ukraine

President of Ukraine Volodymyr Zelenskyy has signed the Law of Ukraine “On Amending Certain Legislative Acts of Ukraine Regarding Stimulation of Investment Activity in Ukraine”.

As reported earlier, the Law provides for without limitation:

• mechanism for compensation for the damages sustained by a joint-stock company as a result of a related-party transaction under the conditions worse than the ones at arm’s length;
• cancellation of joint participation in the development of infrastructure of a settlement;
• introduction of a new instrument to secure obligations – right of trust ownership.

This Law enters into force on the day following the date of its publication, except for several clauses. The Law has not been officially published as of today.

Stricter Requirements to Loan Pledges Introduced for Emergency Liquidity Assistance to Banks

The Regulations on the Emergency Liquidity Assistance to Banks by the National Bank approved by Resolution of the Board of the National Bank of Ukraine No. 411 dated 14 December 2016 establishes the conditions for the emergency liquidity assistance to banks by the National Bank of Ukraine in order to maintain the financial stability, including the stability of the financial system.

The Regulations were amended by Resolution of the National Bank of Ukraine dated 4 October 2019 No. 119. In particular, it entitles the National Bank of Ukraine to reject the property rights under the loan agreement between the bank and the legal entity and the property rights under the loan agreement with the individual as the collateral under the urgent support loan if the legal entity is in arrears with other banks or the individual has the past-due debt of more than seven days with other banks.