The Ukraine is home to one of Europe’s most difficult and volatile governments, and has seen tumultuous political and economic upheaval over recent years. As a result, the country has been making a number of changes to its laws and regulations in order to ensure the safety of its citizens and investors.
One such alteration is the amendment of the Ukraine Transaction Law, which was passed in 2017 and updated late in 2020. This law regulates how and when foreign investments into Ukraine may take place, taking into account regulations such as the Anti-Corruption Law, the Law on Prevention of Money Laundering and the Law on Prohibition of Unfair Competition.
The main alterations of the law are related to the implementation of a new set of rules for the acquisition of controlling interests in certain businesses in Ukraine. The changes are aimed at introducing more transparency when it comes to the establishment of foreign investments into the country. This includes a requirement that foreign investors notify the Ukrainian authorities of acquisitions no later than 30 days after the completion of the deal.
The amendment has also introduced a new set of requirements for foreign businesses to register with the State Register of Foreign Capital Investments. As a result, the State Register will be able to track foreign investment activity better, and identify potential risks associated with the investment process.
The amendments also aim to tighten regulations on foreign investments into entities with Ukrainian government exposure. The disclosure of the ultimate beneficial owners of such entities has now become mandatory, while the Ukrainian government reserves the right to challenge investments made in such entities if it believes they may cause harm to the state or its citizens.
The changes are aimed at raising the barriers to entry into Ukraine for high-risk investments, while opening the door for investments which will bring in capital and job creation to the country. This amendment is an important step forward for the Ukrainian government in making the nation more attractive to foreign investors.