News agency services
In some Member States limitations of foreign participation in publishing companies and broadcasting companies.
Annex V. Ukrainian reservations in accordance with Article 30(2)(a)
The application of the reservations in this Annex shall in no case result in treatment less favourable than that accorded to companies of any third country.
1. Financial services (as defined in the Appendix hereto)
1.1 Banking and related financial services
During a transitional period not exceeding five years from the date of signature of this Agreement, Ukraine may, in respect of the establishment of subsidiaries and branches of Community companies in Ukraine, continue to apply the provisions of the Ukrainian laws:
- "on the system of currency regulation and currency control"
- "on banks and banking activities"
- "on collateral"
- "on stocks and stock exchange"
- "on privatization papers" (related to the distribution and trading of privatization vouchers)
During the transitional period referred to above, no new regulations or measures shall be introduced which increase the level of discrimination applying to subsidiaries or branches of Community companies as compared to Ukrainian companies.
1.2 Insurance (as defined in the Appendix hereto)
No later than five years following the date of signature of this Agreement Ukraine shall create the necessary conditions for the establishment of Community insurance companies as well as joint insurance companies in accordance with Article 30(2)(a).
During the transitional period referred to above, no new regulations or measures shall be introduced which increase the level of discrimination applying to subsidiaries or branches of Community companies as compared to Ukrainian companies.
Insurance activities in some sectors for foreigners are closed, limited or are subject to special requirements during the transitional period.
2. Other areas
Brokerage of immovable property including land
Ownership and use of natural resources
Use of subsoil and natural resources including mining
Acquisition and sale of natural resources
Fishing
Access to and use of the biological resources and fishing grounds situated in Ukrainian territorial waters and in Ukraine's exclusive economic zone is subject to restrictions.
Hunting is restricted in accordance with the legislation of Ukraine.
Agriculture
Acquisition and sale of agricultural land and forests.
Lease of state property
The lease of state property may be required to be paid in freely convertible currency.
Telecommunications
Authorization may be required for companies controlled by foreigners in respect of establishment.
Mass media companies
Some limitation of foreign participation in mass media activities.
Some professional activities
Professional activities in some sectors are reserved to Ukrainian nationals or are subject to special requirements (medicine, education, legal services not including business consultancy involving relevant legal aspects).
Historical buildings and monuments
Appendix to Annex V. Financial Services: definitions
A financial service is any service of a financial nature offered by a financial service supplier of a party. Financial services include the following activities:
A. All insurance and insurance-related services.
1. Direct insurance (including co-insurance).
(i) life
(ii) non-life
2. Reinsurance and retrocession.
3. Insurance intermediation, such as brokerage and agency.
4. Services auxiliary to insurance, such as consultancy, actuarial, risk assessment and claim settlement services.
B. Banking and other financial services (excluding insurance).
1. Acceptance of deposits and other repayable funds from the public.
2. Lending of all types, including consumer credit, mortgage credit, factoring and financing of commercial transaction.
3. Financial leasing.
4. All payment and money transmission services, including credit charge and debit cards, travellers cheques and bankers drafts.
5. Guarantees and commitments.
6. Trading for own account or for the account of customers, whether on an exchange, in an over the counter market or otherwise, the following:
(a) money market instruments (including cheques, bills, certificates of deposits, etc.)
(b) foreign exchange
(c) derivative products including, but not limited to, futures and options
(d) exchange rates and interest rate instruments, including products such as swaps, forward rate agreements, etc.
(e) transferable securities
(f) other negotiable instruments and financial assets, including bullion.
7. Participation in issues of all kinds of securities, including under-writing and placement as agent (whether publicly or privately) and provision of services related to such issues.
8. Money broking
9. Asset management, such as cash or portfolio management, all forms of collective investment management, pension fund management, custodial depository and trust services.
10. Settlement and clearing services for financial assets, including securities, derivative products, and other negotiable instruments.
11. Provision and transfer of financial information, and financial data processing and related software by suppliers of other financial services.
12. Advisory intermediation and other auxiliary financial services on all the activities listed in points 1 to 11 above, including credit reference and analysis, investment and portfolio research and advice, advice on acquisitions and on corporate restructuring and strategy.
The following activities are excluded from the definition of financial services:
(a) Activities carried out by central banks or by any other public institution in pursuit of monetary and exchange rate policies.
(b) Activities conducted by central banks, government agencies or departments, or public institutions, for the account or with the guarantee of the government, except when those activities may be carried out by financial service suppliers in competition with such public entities.
(c) Activities forming part of a statutory system of social security or public retirement plans, except when those activities may be carried out by financial service suppliers in competition with public entities or private institutions.
JOINT DECLARATION CONCERNING ARTICLE 30
Without prejudice to the reservations listed in Annexes IV and V and to the provisions of Articles 44 and 47, the Parties agree that the words "in conformity with their legislation and regulations" mentioned in paragraphs 1 and 2 of Article 30 mean that each Party may regulate the establishment and operation of companies on its territory, provided that these regulations do not create for the establishment and operations of companies of the other Party any new reservations resulting in a less favourable treatment than that accorded to their own companies or to companies or branches or subsidiaries of companies of any third country.
JOINT DECLARATION CONCERNING ARTICLE 31
Commercial presence of a Party's internal waterways transport companies in the other Party's territory shall be governed in accordance with legislation applicable within Member States or Ukraine, until specific more favourable provisions governing such commercial presence can be agreed upon, and if such presence is not governed by other legislative instruments binding on the Parties.
It is understood that a commercial presence shall take the form of subsidiaries or branches as defined in Article 32.
"Legislation applicable" shall be translated into Ukrainian by the phrase...
JOINT DECLARATION CONCERNING THE NOTION OF "CONTROL" IN ARTICLE 32(b) AND ARTICLE 43
1. The Parties confirm their mutual understanding that the question of control shall depend on the factual circumstances of the particular case.
2. A company shall, for example, be considered as being "controlled" by another company, and thus a subsidiary of such other company if:
- The other company holds directly or indirectly a majority of the voting rights, or
- The other company has the right to appoint or dismiss a majority of the administrative organ, of the management organ or of the supervisory organ and is at the same time a shareholder or member of the subsidiary.
3. Both Parties consider the criteria in paragraph 2 to be non-exhaustive.
JOINT DECLARATION CONCERNING ARTICLE 50
The Parties agree that for the purpose of the Agreement, intellectual, industrial and commercial property includes in particular copyright, including the copyright in computer programs, and neighbouring rights, the rights relating to patents, industrial designs, geographical indications, including appellations of origin, trademarks and service marks, topographies of integrated circuits as well as protection against unfair competition as referred to in Article 10 bis of the Paris Convention for the protection of Industrial Property and protection of undisclosed information on know-how.
The Parties declare that the term "intellectual, industrial and commercial property" shall be translated into Ukrainian as...
JOINT DECLARATION CONCERNING ARTICLE 102
The Parties agree, for the purpose of its correct interpretation and its practical application, that the term "cases of special urgency" included in Article 102 of the Agreement mean cases of material breach of the Agreement by one of the Parties. A material breach of the Agreement consists in
(a) repudiation of the Agreement not sanctioned by the general rules of international law, or
(b) violation of the essential elements of the Agreement set out in Article 2.
EXCHANGE OF LETTERS BETWEEN THE COMMUNITY AND UKRAINE IN RELATION TO THE ESTABLISHMENT OF COMPANIES
A. Letter from Ukraine
Dear Sir,
I refer to the Partnership and Co-operation Agreement initialled on 23 March 1994.
As I underlined during the negotiations, Ukraine grants to Community companies establishing and operating in Ukraine in certain respects a privileged treatment. I explained that this reflects the Ukrainian policy to promote by all means the establishment of Community companies in Ukraine.
With this in mind, it is my understanding that during the period between the date of initialling of this agreement and the entry into force of the relevant articles on establishment of companies, Ukraine shall not adopt measures or regulations which would introduce or worsen discrimination of Community companies vis-a-vis Ukrainian companies or companies from any third country as compared to the situation existing on the date of initialling of this agreement.
I would be obliged if you could acknowledge receipt of this letter.
Please accept, Sir, the assurance of my highest consideration.
For the Government of the Ukraine
B. Letter from the Community
Dear Sir,
Thank you for letter of today's date, which reads as follows:
"Dear Sir,
I refer to the Partnership and Co-operation Agreement initialled on 23 March 1994.
As I underlined during the negotiations, Ukraine grants to Community companies establishing and operating in Ukraine in certain respects a privileged treatment. I explained that this reflects the Ukrainian policy to promote by all means the establishment of Community companies in Ukraine.
With this in mind, it is my understanding that during the period between the date of initialling of this agreement and the entry into force of the relevant articles on establishment of companies, Ukraine shall not adopt measures or regulations which would introduce or worsen discrimination of Community companies vis-a-vis Ukrainian companies or companies from any third country as compared to the situation existing on the date of initialling of this agreement.
I would be obliged if you could acknowledge receipt of this letter."
I can acknowledge receipt of this letter.
Please accept, Sir, the assurance of my highest consideration.
On behalf of the European Communities