Annex A. Ukraine’s exceptions to national treatment in the meaning of the OECD Declaration on International Investment and Multinational Enterprises

Agricultural land: Foreign legal entities and subsidiaries of foreign companies (Ukrainian legal entities with foreign investment) are not authorised to own agricultural land. However, they can lease agricultural land for up to up to 50 years. Outside of settlements, they can only acquire ownership titles to non-agricultural land plots in case of a purchase of real estate objects located on such land plots.

Source: Law No. 2768-III: Land Code of Ukraine of 25 October 2001 (Articles 81 and 82).

Purchase of state-owned land: The purchase of state and municipal land by foreign legal entities or by joint ventures with participation of foreigners and foreign legal entities is subject to a specific screening procedure. Foreign legal entities must have a representation office in Ukraine. The purchase requires the approval of the Cabinet of Ministers. In the case of state-owned land, the approval of the Ukrainian Parliament (Verkhovna Rada) is also required.

Source: Law No. 2768-III: Land Code of Ukraine of 25 October 2001 (Article 129).

Forestry: Forests can be owned only by Ukrainian citizens and legal entities. Foreign legal entities and subsidiaries of foreign companies (Ukrainian legal entities with foreign investment) are not authorised to own forests.

Source: Law No. 3852-XII: Forest Code of Ukraine of 21 January 1994 (Article 13).

News information agencies: Foreign ownership is limited to 35% of the charter capital.

Source: Law No. 74/95-BP “On Information Agencies” of 28 February 1995 as amended (Article 9).

Privatisations: The privatisation programme is open to domestic and foreign investors, except those in which more than 25% of equity is owned by a state (i. e. by a foreign state or by the state of Ukraine) as such investors are barred from participating in the privatisation of state and communal property.

Source: Law No. 2544-XII “On Privatisation of State Property” of 4 March 1992 (Article 8).

Air transport: As of July 2016, licences to operate Ukrainian international air routes rights will only be granted to companies controlled by Ukrainian investors (50 % ownership or more). There are no restrictions concerning domestic air routes rights.

Source: Order No. 686 of the Civil Aviation Authority (Derjaviaslujba), adopted on 24th November 2014 (Registration No. 1440/26217).

Maritime transport: Cabotage (i.e. transport of cargo between Ukrainian ports, including as part of international transportation) is reserved to vessels under Ukrainian flags, unless a special permit is issued by the State Inspectorate for Maritime and Inland Water Transport Safety. According to Article 32 of the Merchant Marine code, only vessels owned by Ukrainian citizens or by a Ukrainian legal entity whose shareholders are all Ukrainian citizens can fly the Ukrainian flag. Foreign vessels hired by Ukrainian citizens under a bareboat charter arrangement can fly the Ukrainian flag for the duration of the arrangement.

Source: Merchant Marine code of Ukraine, Articles 32 and 131 (4 July 2013).

Television and radio broadcasting: The Law “On Television and Radio Broadcasting” forbids foreign legal entities, individual entrepreneurs or any non-resident registered in offshore zones (as defined by the Cabinet of Ministers) from setting up, acting as co-founders or being shareholders of TV channels, radio broadcasting companies, or television and radio content providers.

Source: Article 12 of the Law of Ukraine on Television and Radio Broadcasting No. 3759-XII of 21 December 1993 (as amended).

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Participation by firms registered offshore (as defined by Ordinance N° 143-p of the Cabinet of Ministers dated 23 February 2011) into public procurement biddings is forbidden.

Source: Law No. 1197-VII “On Public Procurement” (20 April 2014), Article 17.

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