One Year Later EU-Ukraine Association Agreement Signed a Year Ago: Progress and Prospects
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1 One Year Later EU-Ukraine Association Agreement Signed a Year Ago: Progress and Prospects (Harmonization of National Legal System with EU Legislation and Practice) Lana Sinichkina, Partner
2 Content 1. Legislative Background 2. Institutional Changes 3. Reforms 4. Civil Society Initiatives 5. Harmonization in Energy Sector
3 1. Legislative Background
4 Legislative Background DCFTA (Title IV) key issues I. EU-Ukraine Association Agreement: 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 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 II. Action Plan of the Cabinet of Ministers of Ukraine on Implementation of the EU-Ukraine Association Agreement for 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 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
5 Action Plans of Ministries and other State Authorities Ministries 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 Other State Authorities 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
6 Recent developments in Ukraine April 2014, IMF US $ 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); New Government: foreign experts and businessmen Active participation of business organizations in development of Financial aid from international organizations and funds Ukraine Oslo 2015
7 Financial Aid Reforms to be made by Ukraine 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; 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
8 2. Institutional Changes
9 New bodies created in order to ensure harmonization Government office for European integration; Main Department of external policy and European integration within the Administration of President of Ukraine; Departments on European integration within ministries and other state authorities; Deputies of Ministers on European integration; Support group for Ukraine within European Commission; Issue of appointing the Vice-Premier Minister on European integration was raised by the President on June 4, 2015
10 3. Reforms
11 Recent Developments in Ukraine Taxation Judicial Deregulation Anticorruption Reform Reform improved Criminal Reduction liability order Stamping of abolishment number of of legal formation entities; of courts, appointment of judges to of taxes from 22 to 9; administrative Clarification of positions, definition optimization of illegal benefit; of courts; Introduction improvement New Simplification regulations of of the on electronic of gifts; order business of formation launch administration of the Highest of VAT; Council of Justice; The clarified Legal convergence Single regulation and Window strengthened of whistleblowing; system of accounting creation guarantees and of taxation independence for income and immunity tax; of Reduction judges, Introduction Reduction their rights of of Anti-corruption the number and tax obligations, burden of licenses/permits expertise on the of wage legal acts; fund; Alteration clear Registers definition Harmonization of corruption of transfer of the grounds of Technical offenders; pricing and Regulation rules; procedure for disciplinary proceedings System with EU regulation against Requirements judges to compliance procedures; Specific VAT system in the agricultural sector; Strengthening New enforcement the position agencies: of the Supreme Court as a guarantor of unity of the judicial practice National anti-corruption agency National anti-corruption bureau Specialized anti-corruption prosecutor s office
12 Recent Developments in Ukraine (2) 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; Presidential election in May and the parliamentary elections in October 2014 complied with international standards.
13 4. Civil Society Initiatives
14 Key Civil Society Organizations Stronger Together Easy Business Reanimation Package of Reforms ACC EBA
15 Navigator of Association 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
16 4. Harmonization in Energy Sector
17 Energy Sphere Reform 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.
18 Measures taken by Ukraine in energy sphere 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: Directive 94/63/EC Directive 98/70/EC Directive 2004/8/EC Directive 2006/21/EC Directive 2009/72/EC Directive 2009/73/EC Directive 2009/119/E C 4) Adopting the Law of Ukraine On natural gas market 329-VIII based on Directive 2009/73/EC April 9, 2015: procedures and liability of the State to enhance the security of gas supply in a crisis situation, the division of market players, consumer protection. 5) Registering the Draft law of Ukraine On transparency of mining industry reg. No based on EITI requirements at the Parliament April 7, 2015.
19 Ukraine on the way to EITI 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.
20 Thank you!
21 Our contacts Head Office of Arzinger Eurasia Business Center, 75 Zhylyanska St. Kyiv, 01032, Ukraine Теl.: +38 (044) Fax: +38 (044) West Ukrainian Branch of Arzinger 6/1 Generala Chuprynky St. Lviv, 79013, Ukraine Tel.: +38 (032) Fax: +38 (032) Key Contacts: Timur Bondaryev, Managing Partner Lana Sinichkina, Partner South Ukrainian Branch of Arzinger Pokrovsky Business Center, 33 Zhukovskogo St. Оdessa, 65045, Ukraine Теl./Fax: +38 (048) We are looking forward to our future cooperation!
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