One Year Later – EU-Ukraine Association Agreement Signed a Year Ago:

Progress and Prospects

(Harmonization of National Legal System with EU Legislation and Practice)

Tbilisi | 2015Lana Sinichkina, Partner

Content

Tbilisi | 2015

1. Legislative Background

Tbilisi | 2015

Legislative Background

Tbilisi | 2015

I. EU-Ukraine Association Agreement:

II. Action Plan of the Cabinet of Ministers of Ukraine on Implementation of the EU-Ukraine Association Agreement for 2014-2017

III. Coalition Agreement between the parties constituting the majority of Ukrainian Parliament

IV. Strategy of Constant Development “Ukraine 2020” approved by the President of Ukraine

Economic and Sector Cooperation (Title V)

Energy Macro-Economic Public finances Taxation

Statistics Environment Transport Space

Science, technology Industry, enterprise Mining, metals Financial services

Company law, corporate governance, auditing

Fisheries and maritime policies

Employment, social policy Education, training and youth

Agriculture Information society Danube river Consumer protection

Audio-visual policy Public health Tourism Culture

Sport Civil Society Cross-Border and regional cooperation

Participation in EU agencies and programs

DCFTA (Title IV) – key issues

Technical regulations and conformity assessment

Sanitary and phytosanitary measures

Operation of the Customs Office

Antitrust legislation

IP rights Transparent rules in the energy sector

Public procurement

Ministries Other State Authorities• Ministry of Economic Development and

Trade• Ministry of Agrarian Policy and Food• Ministry of Infrastructure• Ministry of Justice• Ministry of Social Policy• Ministry of Education and Science• Ministry of Health• Ministry of Internal Affairs• Ministry of Regional Development,

Construction and Utilities Services• Ministry of Energy and Coal Industry• Ministry of Finance

• Antimonopoly Committee of Ukraine• National Committee on Television and

Radio Broadcasting• State Inspection on Nuclear Regulation• State Service on Emergency Situations• State Service on Special Connection and

Protection of Information• National Commission on Securities and

Stock Market• National Commission Conducting State

Regulation in the Area of Financial Services Markets

Action Plans of Ministries and other State Authorities

Tbilisi | 2015

http://www.kmu.gov.ua/kmu/control/uk/publish/article?art_id=247984208&cat_id=247984327

Recent developments in Ukraine

Oslo | 2015

New Government: foreign experts and businessmen Active participation of business organizations in development of UkraineFinancial aid from international organizations and funds

• April 2014, IMF – US $ 17.01 billion,• February 2015, IMF - economic reform program;• March 2015, IMF – US $ 17.5 billion program;• May 2015, EU – EUR 1,8 billion program under Memorandum of

Understanding (Riga);

Financial Aid – Reforms to be made by Ukraine

Tbilisi | 2015

• Deregulation; • Reform of tax administration;• Reform of banking sector;• Reform of energy sector;• Transparency and anticorruption reform; • Reform of state-owned enterprises

• Deregulation;• Financial sector reform;• Increasing efficiency in the use of public resources;• Anticorruption reform;• Utility and energy sector reform;• Reforms in social sphere

• Deregulation;• Reform of competition policy; • Reform of public finance management system and financial sector;• Anticorruption reform; • Reform of state-owned enterprises;• Reform of public administration;• Reform in energy sector;• Reforms in social sphere;• Judicial reform;

2. Institutional Changes

Tbilisi | 2015

New bodies created in order to ensure harmonization

Tbilisi | 2015

Issue of appointing the Vice-Premier Minister on European integration was raised by the President on June 4, 2015

3. Reforms

Tbilisi | 2015

• Deregulation

Stamping abolishment Simplification of business launch Single Window system creation Reduction of number of licenses/permits Harmonization of Technical Regulation System with EU regulation

Recent Developments in Ukraine

Tbilisi | 2015

• Taxation Reform

Reduction of number of taxes from 22 to 9; Introduction of electronic administration of VAT; The convergence of accounting and taxation for income tax; Reduction of the tax burden on the wage fund; Alteration of transfer pricing rules; Specific VAT system in the agricultural sector;

• Judicial Reform

improved order of formation of courts, appointment of judges to administrative positions, optimization of courts;

improvement of the order of formation of the Highest Council of Justice; clarified and strengthened guarantees of independence and immunity of

judges, their rights and obligations, clear definition of the grounds and procedure for disciplinary proceedings

against judges Strengthening the position of the Supreme Court as a guarantor of unity of

the judicial practice

• Anticorruption Reform

Criminal liability of legal entities; Clarification of definition of illegal benefit; New regulations on gifts; Legal regulation of whistleblowing; Introduction of Anti-corruption expertise of legal acts; Registers of corruption offenders; Requirements to compliance procedures; New enforcement agencies:

• National anti-corruption agency • National anti-corruption bureau • Specialized anti-corruption prosecutor’s office

• Decentralization;• Revised public procurement law; • Ongoing public finance management reform;• Laws on standardization and metrology;• Laws on food safety and animal identification and registration;• Amendments to consumer protection legislation;• Agricultural reform; • Criteria for systemically important banks;• Progress on gender equality;• Ratification of eight of the International Labor Organization’s Conventions;

Recent Developments in Ukraine (2)

Tbilisi | 2015

Presidential election in May and the parliamentary elections in October 2014 complied with international standards.

4. Civil Society Initiatives

Tbilisi | 2015

Key Civil Society Organizations

Tbilisi | 2015

Stronger Together

Easy Business

Reanimation Package of Reforms

ACC

EBA

On-line instrument for monitoring implementation of EU-Ukraine Association Agreement:•Search by numbers, names of legal acts of EU, by topics;•Contains brief description of EU legal acts to be implemented and direct links to EUR-Lex;•Allows to asses the progress of implementation of the EU law

Navigator of Association

Tbilisi | 2015

http://www.eurointegration.com.ua/navigator/

4. Harmonization in Energy Sector

Tbilisi | 2015

Reform of Ukrainian legislation in part of energy market reform and increase of energy transparency is important for:

-Implementation of the Association Agreement;

-Implementation the Protocol on the accession of Ukraine to the Energy Community Treaty;

-increase of the energy sector transparency, thus reduction of corruption and liquidation of shadow schemes;

-increase of investments in the energy sector, strengthening of energy security.

Energy Sphere Reform

Tbilisi | 2015

1) Appointing Deputy Minister on issues of European integration;2) Creation of the Department of European integration within the Ministry of

Energy and Coal Industry;3) Approving the Action Plan on Implementation of the EU Legislation in the

Energy Sphere:

4) Adopting the Law of Ukraine “On natural gas market” № 329-VIII – based on Directive 2009/73/EC – April 9, 2015:

5) procedures and liability of the State to enhance the security of gas supply in a crisis situation,

6) the division of market players, 7) consumer protection.5) Registering the Draft law of Ukraine “On transparency of mining industry” reg. No.

2591 based on EITI requirements at the Parliament – April 7, 2015.

Measures taken by Ukraine in energy sphere

Tbilisi | 2015

Draft Law “On transparency of mining industry”:will allow to fulfil the requirements of the EITI – to disclose:

•the funds paid by the companies in the field of extraction and transportation of oil and gas to the budgets of different levels; •the income received by the state from the activities of these companies; and• information on their activity and the license holders.

Ukraine – on the way to EITI

Tbilisi | 2015

Thank you!

Tbilisi | 2015

Tbilisi | 2015

Head Office of ArzingerEurasia Business Center, 75 Zhylyanska St.Kyiv, 01032, UkraineТеl.: +38 (044) 390-55-33 Fax: +38 (044) 390-55-40

West Ukrainian Branch of Arzinger 6/1 Generala Chuprynky St.Lviv, 79013, UkraineTel.: +38 (032) 242-96-96Fax: +38 (032) 242-96-95

South Ukrainian Branch of ArzingerPokrovsky Business Center, 33 Zhukovskogo St.Оdessa, 65045, UkraineТеl./Fax: +38 (048) 711-74-74

mail@arzinger.ua www.arzinger.ua

We are looking forward to our future cooperation!

Key Contacts:

Timur Bondaryev, Managing PartnerTimur.Bondaryev@arzinger.ua Lana Sinichkina, PartnerLana.Sinichkina@arzinger.ua

Our contacts