On January 20, 2021, the Cabinet of Ministers of Ukraine approved the draft law “On foreign investments in entities that are of strategic importance for the national security of Ukraine” (hereinafter – the “Draft”), which is intended to increase the supervision over the investments in certain fields of economy.
In particular, the Draft is aimed at activities in the field of IT and telecommunications; defense, space and aviation industries; activities associated with the use of virus disease agents; activities in the field of nuclear energy and radiation waste; mining; activities of entities that hold a monopoly (dominant) position in certain markets.
The draft law establishes that the certain actions (acquisition of control over business entities/shares from 10%; appointment of enterprise management, etc.) will require prior consent from the Ministry of Economy, which will consider the investment influence and its acceptability under the legislation and risks criteria. Any other approvals (including those from Antimonopoly committee) shall be subsequent to this consent from the Ministry of Economy.
Currently the Draft is still under consideration, and its final wording and scope may be amended.
How SCHNEIDER GROUP can help
If you would like to have more information on investment regime in Ukraine as well as about the current Draft status, please do not hesitate to contact us. SCHNEIDER GROUP legal experts in Ukraine will be ready to advise you, using their experience and competencies for the success of your business.