Business news from Ukraine

Deputies sent bill on credit unions for re-reading

The Verkhovna Rada did not support bill No. 5125 on credit unions at a meeting on July 18 and sent it for a second second reading, People’s Deputy Yaroslav Zheleznyak said.
“They didn’t generally support (219) No. 5125 the new legislation on credit unions. They sent it to a second second (vote),” he wrote on the Telegram channel on Monday.
According to the report, 234 parliamentarians voted for such a decision, with the required 226 votes.

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PARLIAMENT ADOPTED IN FIRST READING BILL ON INTRODUCTION OF BIM TECHNOLOGIES IN UKRAINE

The Verkhovna Rada adopted in the first reading and as a basis bill No. 6383, which provides for the introduction of building information modeling (BIM-technologies) at all stages of the life cycle of objects.
“In most developed countries, BIM technologies are already actively used in the design of construction projects. In particular, for state orders, their use is mandatory. The Ukrainian construction industry still does not have a very high level of digitalization, and BIM technologies are still used in their activities of only a few organizations. Finally, we will change this and our construction will become modern,” Elena Shulyak, deputy head of the Verkhovna Rada Committee on the organization of state power, local self-government, regional development and urban planning, said on Facebook.
According to her, thanks to BIM technologies, it will be possible to gain access to any information about the construction site, control construction work at all stages, rationally use resources and significantly reduce construction costs.
As reported, the draft law also provides for the mandatory use of BIM technologies in the development of project documentation for the construction of facilities with the involvement of budgetary funds. In this case, a transitional period of five years is established.
Earlier in February 2021, the Cabinet of Ministers of Ukraine approved the concept for the introduction of BIM technologies.

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PARLIAMENT OF UKRAINE ADOPTED IN 1ST READING BILL ON THERMAL MODERNIZATION OF BUILDINGS

The Verkhovna Rada adopted in the first reading bill No. 6485 on creating conditions for comprehensive thermal modernization of buildings, MP Ivan Yunakov (Servant of the People faction) said.
“We considered this bill at the committee on February 23 … We will prepare for the second reading, taking into account the conditions and challenges that the country faced the next day,” the people’s deputy wrote on Facebook on Tuesday.
According to the explanatory note to the bill, the document will remove a number of legislative obstacles to the implementation of thermal modernization projects, including in the case of state support.
The bill amends the law “On the Energy Efficiency Fund” in terms of the procedure for developing, reviewing and accepting applications, implementing and verifying projects.
The draft law will also simplify the implementation of partial thermal modernization projects by reducing the number of procedures, as well as introducing clear criteria in terms of energy efficiency indicators for such projects.
In addition, the procedure for the creation and functioning of associations of co-owners of an apartment building (OSMD) will be simplified.

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U.S. PRESIDENT JOE BIDEN SIGNS $40 BLN BILL FOR UKRAINE

On Saturday, U.S. President Joe Biden signed a bill approved by the Congress to appropriate $40 billion for Ukraine, the White House press service has reported.
“On Saturday, May 21, 2022, the President signed into law H.R. 7691, the “Additional Ukraine Supplemental Appropriations Act, 2022,” the press service said in a statement posted on the White House’s official website.
“Additional Ukraine Supplemental Appropriations Act, 2022” provides supplemental emergency appropriations for fiscal year 2022 to Federal agencies to respond to the situation in, and for assistance to, Ukraine.

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HOUSE OF REPRESENTATIVES OF US CONGRESS PASSED BILL ON USE OF CONFISCATED RUSSIAN ASSETS FOR RESTORATION AND ASSISTANCE TO UKRAINE

The US House of Representatives passed bill HR6930 on the allocation of assets subject to US sanctions for reconstruction and humanitarian assistance to Ukraine, the press service of the Congress reports.
“Specifically, within two years from the entry into force of this bill, the President (Joe Biden – IF) may seize such assets if (1) Russia continues to participate in the conflict of territorial seizures in Ukraine; (2) the President has imposed sanctions on the owner of the assets for reasons related to corruption, human rights violations, malicious influence or conflicts in Ukraine; and (3) the value of the assets exceeds $5 million,” the website says.
It is explained that “the seized assets can be liquidated and the funds received can only be used for certain purposes, including (1) post-conflict reconstruction of Ukraine, (2) humanitarian aid and refugee support for the Ukrainian people, (3) weapons for the Ukrainian armed forces ( …)”.
The law must be approved by the Senate and signed by the President of the United States to enter into force.
The House of Representatives of the US Congress passed a bill providing for the confiscation of Russian sanctioned assets.
According to Prime Minister of Ukraine Denys Shmyhal, he personally discussed the need for such an important step with Speaker of the House of Representatives Nancy Pelosi during a recent visit to the United States.
“Thank you for this fair decision. The aggressor must pay for the destroyed property! The provisions of the document allow these funds to be used to restore Ukraine, provide humanitarian assistance to Ukrainians and other assistance to the state, including military,” the head of the Ukrainian government said.
He added that Canada is currently preparing a similar bill, which he also spoke about with Canadian Deputy Prime Minister Chrystia Freeland during his visit to the United States.

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BUSINESS INSISTS ON MANDATORY REVISION OF BILL ON TIMBER MARKET

Experts of the European Business Association (EBA) insist on the obligatory revision of the draft law on the timber market taking into account the proposals of the business, in particular, it should provide for a cascade principle of the auction.
“In our opinion, priority access to the resource should be provided to companies that have production facilities and carry out wood processing in Ukraine,” the EBA said in a press release on Thursday.
In addition, according to the press release, it is necessary to significantly revise and simplify the rules of administration of transactions with wood products.
“According to business, they are not only excessive but also inappropriate given the specifics of the market. Businesses find it inexpedient to declare transactions related to wood products, instead of focusing on declaration of the procurement and sale [resale] of wood,” the association’s experts said.
The EBA also notes the need to revise the list of wood products requiring a certificate of origin and exclude from it products that are not of primary wood processing.
The press release notes that the consideration of this bill (No. 4197-d) in the Verkhovna Rada is scheduled for October 22.
“It is worth noting that the updated version of draft law No. 4197-d took into account certain important proposals from businesses. These are provisions that provide a mechanism for the sale of timber on the terms of the offer in parity with the auction and the restructuring of state forestry enterprises by separating the woodworking units of state forestries,” the press release states.
The association notes that it continues to develop proposals for the wording of the bill, which will be submitted additionally.
As reported, revised draft law No. 4197-d on the timber market envisages the abolition of the moratorium on export of unprocessed timber from Ukraine and the introduction of a transparent timber market.

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