Main weekly events from Infobank News Agency
| 9 March 1999 | 49 |
GOVERNMENT MAY USE FINANCIAL SANCTIONS AGAINST "DAEWOO"
PARLIAMENT HAS DECLINED A BILL WHICH ANTICIPATED REGULATORY NATURE OF OIL TRADE IN UKRAINE
UKRAINE'S PARLIAMENT JOINS CIS INTERPARLIAMENTARY ASSEMBLY
GOVERNMENT SHARPLY RAISES TAXES FOR REGISTRATION AND RE-REGISTRATION OF FOREIGN-MADE MEDICATIONS
GOVERNMENT MAY USE FINANCIAL SANCTIONS AGAINST "DAEWOO"
KYIV. Within the nearest two weeks, Ukraine's government is to analyse the
fulfillment by Daewoo of its investment commitments relating the
production of cars at AvtoZAZ (Zaporizhya). Should the government
conclude that Daewoo failed to meet its commitments, it may use sanctions
against the Korean car giant, in line with the Ukrainian legislation, said
Reforms and Order party deputy chairman, Serhy Sobolev, speaking at his
March 1 press conference.
According to his estimate, in its efforts to unilaterally change the
business plan of the Korean-Ukrainian JVC, AvtoZAZ-Daewoo, and to reduce
investment the Korean car manufacturer tried to evade the law to stimulate
car production in Ukraine. The law gives Daewoo substantial tax breaks
and customs benefits. All this indicates, accordinbg to Sobolev, Daewoo's
unwillingness to implement the main provision of the agreement - invest
US$ 150 million in Ukraine.
Serhy Sobolev also stressed that Daewoo ignored a provision to increase
the share of Ukrainian-made parts at its assembly plant in Illichivsk
(Odesa oblast), although the share of Ukrainian parts suppliers must have
grown to 20% after the first year of JVC operation.
The Reforms and Order party was one of the initiators of the law to
stimulate car production in Ukraine. AvtoZAZ present general director,
Olexandr Sotnykov, is member of this party and head of its Zaporizhya
branch organization.
PARLIAMENT HAS DECLINED A BILL WHICH ANTICIPATED REGULATORY
NATURE OF OIL TRADE IN UKRAINE
KYIV. On March 2 Ukrainian Parliament declined a bill proposed by
President on state regulation of import, export, wholesale and retail
trade with oil products. Such decision was made after a proposal was
forwarded by three Parliament committees (on issues of economic policy and
public economy, oil industry as well as finance and banking).
In their opinion, the law proposed by President will lead to price
increase of oil products in Ukraine. MPs have decided to assign the
Parliament committees along with the Government with the task of
preparing their own draft law which would clearly regulate licensing of
export/import and trade transactions with oil products as well as define
the list of oil products which will be subject to the regulations.
Besides, in this bill the decision was made to establish licensing
standards for export/import and trade with natural gas and electric power.
As has been earlier reported by Infobank, on Jan.25, 1999 President Kuchma
signed a decree similar in content to the proposed bill. The decree
envisages special permits for export/import of oil and licenses for
wholesale/retail trade in the country. The procedure for the issue of
licenses and permits is to be drawn up by the cabinet.
The cabinet is also to approve the list of petroleum products subject to
special permits during export/import transactions and to create a uniform
centralized system registering the flow of petroleum products in Ukraine.
In order to get licenses and permits, companies are demanded to settle
their payments to the state budget and non-budgetary funds.
The decree foresees penalties for unlicensed trade in petroleum products,
including a fine amounting to 50 percent of the cost of a wholesale
contract to be imposed on a legal entity or an individual businessman.
All petroleum products traded wholesale without a license are subject to
confiscation by the state.
UKRAINE'S PARLIAMENT JOINS CIS INTERPARLIAMENTARY ASSEMBLY
KYIV. On March 3, Ukraine's parliament supported with 230 votes the motion
to join the CIS Interparliamentary Assembly. Lawmakers took an anonymous
vote.
As has been earlier reported by Infobank, the leftist factions were
especially vocal campaigning to join the CIS IA. They even agreed to
block ratification of any other international agreements until the CIS IA
issue had been resolved positively. Before today, Ukraine's lawmakers
have already taken several unsuccessful votes on the motion to join the
CIS IA.
GOVERNMENT SHARPLY RAISES TAXES FOR REGISTRATION AND RE-REGISTRATION
OF FOREIGN-MADE MEDICATIONS
KYIV. Ukraine's government took a decision to sharply raise taxes for the
registration and re-registration of medications. From now on, the hryvnia
equivalent of EURO 1,000 is to be paid for the registration of a
medication, regardless of its pharmacotherapeutical group, and the
hryvnia equivalent of EURO 100 for each new dosage or packing of the same
medication. Earlier, the tax was 10 untaxed minimum incomes of
Ukrainians, or UAH 170, and one untaxed minimum income, or UAH 17,
respectively.
The equivalent of EURO 500 is to be paid for the re-registration
(following the expiry of the previous registration term) of a
medication and the equivalent of EURO 25 for each different dosage or
packing of the same medication. Earlier, the tax was 5 untaxed minimum
incomes, or UAH 75. The registration or re-registration of a foreign
medication bottled/packed in Ukraine from the registered foreign "in bulk"
medications will cost the equivalent of EURO 25 for each medication and
any further different packing. Earlier, the tax was 10 untaxed minimum
incomes for a medication and 0.25 u.m.i. for any different packing.
The re-registration of the earlier registered medication due to the
intention of a producer to change the name of a medication or the trade
name of a producer or due to the transfer of production rights to other
manufacturers the equivalent of EURO 25 is to be paid for each medication
and for each different dosage or packing of the same medication. Earlier,
the tax was 1 u.m.i. for a medication and 0.25 u.m.i. for any different
dosage or packing of the same medication.
The re-registration of earlier registered medications which were produced
in Ukraine will cost the equivalent of EURO 25 for each medication
regardless of its pharmacotherapeutical group. Originally, the tax was 1
u.m.i. for a medication and 0.25 u.m.i. for any different dosage or
packing of the same medication. New taxes are also imposed for substances
(agents) of medications - the equivalent of EURO 500 for the term of 5
years and the equivalent of EURO 25 for each new substance title. All
taxes are to be paid in Hryvnias at the National Bank's exchange rate as
on the day of the registration.
The government also cancelled special tax rates for the registration of
foreign-made medications (1,000 u.m.i. for each medication and 100 u.m.i.
for each new different dosage or packing of the same medication); for the
re-registration of a foreign-made medication due to the expiry of the
previous registration ( 500 u.m.i. for a medication and of 50 u.m.i. for
each different dosage or packing of the same medication); and for the
re-registration due to the intention to change the name of a medication or
to transfer production rights ( 100 u.m.i. for a medication and 10 u.m.i.
for each different dosage or packing of the same medication).
PARLIAMENT REITERATES THAT PRESIDENTIAL CANDIDATES CAN BE NOMINATED ONLY
BY PARTIES AND VOTERS' MEETINGS
KYIV. On March 5, Ukraine's parliament overrode President Kuchma's veto
of the law on presidential elections. Lawmakers rejected 56 of Kuchma's
total 321 new proposals to the law. In particular, lawmakers rejected
President Kuchma's main proposal to empower NGOs to nominate presidential
candidates.
Lawmakers also defeated Kuchma's proposal to reduce the duration of the
presidential campaign from 180 to 120 days, as well as to create 225
constituencies for presidential elections. Parliament also rejected
Kuchma's proposal to reduce from 500 to 200 the minimum number of voters
required for the nomination of a candidate and to reduce from two-thirds
to 50% the number of votes required to nominate a candidate at voter's
meetings. Lawmakers, however, approved a proposal allowing each voter to
support only one nomination of a candidate.
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