Draft Law of Ukraine

"On Amendment of Some Laws of Ukraine"

This draft provides for amendment of the Laws of Ukraine "On Foreign Economic Activity", "On Protection of Economic Competition" and "On Licensing Certain Types of Economic Activity".

This draft law somewhat changes definitions of such terms as "business entity" and "subjects of foreign economic activity" contained in the above laws.

According to this draft not only legal entities, but also their separated divisions, subdivisions, branches, representations etc. shall be treated as business entities and subjects of foreign economic activity.

Enactment of the draft law will affect enterprises with separated branches. If this draft is adopted such enterprises will have to get licenses for each of their divisions. It should be mentioned that now separated divisions act on the basis of one license given to an enterprise to perform certain activity.

Portion of each separated enterprise division on the market of certain goods will be taken into account during anti-monopoly investigations. In this case separated divisions of the same enterprise will be deemed as business entities competing with each other and with the [head] enterprise. Such situation will reduce efficiency of the legislation on protection of economic competition.