Legislative news digest: LEGAL HOTLINE 30.05.2019

Green Power Industry Amendments Law Comes into Force

The Law of Ukraine “On Introduction of Amendments to Certain Laws of Ukraine Regarding Ensuring Competitive Conditions for Generation of Electricity from Alternative Energy Sources” No. 2712-VIII which provides renewable energy auctions became effective on 22 May.

In accordance with the amendments, from 1 January 2020, the support for economic entities implementing certain renewable energy projects can be provided only to the winners of the support quotas auction. The auctions will be held twice a year, starting with the period from 1 July 2019 to 31 December 2029.

The changes also provide 25 % reduction of “green” tariff for solar power stations in 2020 followed by 2.5 % reduction each year within the three-year period and 10 % reduction for wind power stations followed by 1.5 % reduction each year within the three-year period.

According to the Law, the actual “green” tariff support system will be in force until 2030 and applicable, particularly, to producers which are already entitled to the “green” tariff as well as to economic entities which will build power facilities and put them into service until 1 January 2020.

Amendments to the Tax Code as to Electronic Trust Services Become Effective

The Law of Ukraine “On Introduction of Amendments to the Tax Code of Ukraine Due to Adoption of the Law of Ukraine “On Electronic Trust Services” became effective on 22 May 2019.

Such concepts as “qualified electronic trust service”, “qualified electronic trust services provider”, “qualified electronic signature or seal”, “qualified electronic time stamp” and “qualified public key certificate” were defined in the Tax Code.

In accordance with the introduced amendments, the qualified electronic trust services provider of the central executive body implementing the state tax and customs policy provides taxpayers with qualified electronic trust services free of charge. The only ground for failure of taxpayer user account verification is invalid qualified electronic signature of the taxpayer, including expired public key certificate.

New Construction Standards Increase Permitted Height of Buildings

The new state construction standards (SCSs) В.2.2-24: 20XX “High-Rise Building and Complexes” stipulate the following maximum height standard for designing high-rise municipal buildings: 150 m, 50 m higher than the maximum height provided for by the current SCSs.

The new SCSs also set out a number of up-to-date requirements in order to increase safety of such buildings, namely rigidity requirements to steel and reinforced concrete structures for high-rise building frame design. The requirements to the minimum ceiling thickness, obligatory aerodynamic blowing of a high-rise building model and surrounding facilities are also established.

The standards have already been approved and will be published in the near future and become effective approximately in a three-month period.

The State Bureau of Investigations is Authorised to Conduct Operative-Investigative Actions

Law No. 2720-VІІІ on improving the activities of the State Bureau of Investigations became effective on 22 May. The law introduces a position of an operational officer that allows establishing operational units of the SBI. The list of units which are authorised to conduct operative-investigative actions has been specified as well. Initiating of an operative-investigative case is followed by a decision approved by the Director of the SBI or its authorised deputy.

Previously operative-investigative actions under the SBI proceedings were conducted by other law enforcement agencies.

Advance Contribution for Initiating Enforcement Proceeding is Cancelled

The Constitutional Court of Ukraine declared the second part of Article 26 of the Law “On Enforcement Proceeding” regarding confirmation of a 2 % advance contribution from the amount to be collected for initiation of an enforcement proceeding as non-complying with the Constitution.

Ruling No. 2-р(II)/2019 thereof in case No. 3-368/2018 (5259/18) was approved on 15 May 15, 2019, the provisions declared unconstitutional become null and void from the date of this Ruling adoption.

The Ruling of the Constitutional Court of Ukraine is binding, final, and cannot be appealed.