Business news from Ukraine

UKRAINE PLANS TO BAN DISTRIBUTION OF PHOTOS, VIDEOS WITH EROTIC IMAGES OF CHILDREN

The Verkhovna Rada intends to amend the law on the protection of public morals regarding the protection of the rights and interests of children.
A total of 343 MPs voted for the corresponding bill No. 5330-1 at the first reading.
The bill, in particular, proposes to prohibit creation and distribution of photos and/or videos of sexual or erotic images of children (the current law prohibits the use of images of children in any form only in products of a sexual or erotic nature).
According to the bill, products of a sexual or erotic nature can be distributed only if they are not available to children and are not imposed on consumers.

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UKRAINIAN PARLIAMENT WANTS TO BAN ADVERTISING OF E-CIGARETTES

The Verkhovna Rada supported at first reading the amendments to Article 22 of the Law on advertising regarding the expansion of the law to electronic cigarettes and liquids used in them.
Some 284 MPs backed bill No. 4212, with the minimum required votes of 226.
The document provides for a ban on advertising of tobacco products, electronic cigarettes, liquids used in electronic cigarettes, advertising marks for goods and services, other objects of intellectual property rights, under which tobacco products, electronic cigarettes and liquids used in electronic cigarettes are produced.
The bill prohibits the placement on any other goods of images of tobacco products, electronic cigarettes, liquids used in electronic cigarettes, marks for goods and services under which tobacco products are produced (such as lighters and ashtrays).
It is also prohibited to sponsor television, radio, theater and concert, sports and other events using marks for goods and services, other objects of intellectual property rights, under which tobacco products, electronic cigarettes, liquids used in electronic cigarettes are produced.
According to the document, advertisements for electronic cigarettes and e-liquids should not contain images of popular people or approval of smoking or use of electronic cigarettes. Also, advertising should not give the impression that most people smoke or use electronic cigarettes.
According to an explanatory note to the bill, the ban on advertising of electronic cigarettes and the liquids used in them is aimed at preserving the health of the nation. The document is aimed at reducing the use of electronic cigarettes and the liquids used in them.

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UKRAINIAN BANS FOREIGNERS IN TRANSIT FROM ENTERING COUNTRY

The Ukrainian government has made changes to the list of exceptions for foreigners who are not denied entry in the country, the Ukrainian Foreign Ministry said on Facebook.
The new rules scrap the provision allowing foreigners who are in transit on the territory of Ukraine to enter the country.
Exceptions from the entry ban are made for people who are spouses, parents, children, or grandparents of a citizen of Ukraine.
Children are given legal status before they become full of age.
If people are sent to Ukraine to study, they only have to go to higher education establishments.
According to earlier reports, the Ukrainian government closed the borders to foreign citizens until September 28.
The restriction did not affect people who have residence permits, are members of international and humanitarian missions, who enter the country in transit, who drive cargo road vehicles, are instructors of NATO states, culture figures, people who have invitations from culture establishments, and also some other categories of people.

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BAN ON REGISTRATION IN UKRAINE OF SALVAGED CARS FROM ABROAD TO ENTAIL $327 MLN BUDGET LOSSES/YEAR –COMPANY

Changes to the registration of vehicles, initiated by the Interior Ministry of Ukraine, which, in particular, prohibit the registration of cars with salvage titles imported from abroad, will create problems for companies involved in this business, will make it impossible for Ukrainians to buy such cars with a clear history at reasonable prices and also entail losses of the national budget in the amount of at least $327 million, according to Columb Trade company.
“Now more than 90% of cars with salvage titles come to Ukraine with such documents (marked for recycling), but in fact they have minor damage (lighting, bumpers, wings) and after restoration pass certification in authorized bodies. The proposed changes may replace the functionality of certification bodies, while citizens are deprived of the opportunity to purchase a car with a clear history of origin,” Roman Voloshin, a lawyer of the company, said at a press conference at Interfax-Ukraine.
He emphasized that in general the draft resolution, posted on the website of the Interior Ministry for discussion, contains many positive norms that will simplify the process of registration (re-registration of a car), however, two provisions on the prohibition of registration of cars with salvage titles, as well as on the need for mandatory translation of accompanying documents to the official language with an apostille will create chaos in the market, will entail additional costs for buyers and budget losses.
“Only the requirement of compulsory apostille, according to our calculations, will lead to additional costs for buyers of $200-300,” Voloshin said.
According to the calculations cited by Columb Trade co-founder Volodymyr Kovel, about 36,800 people who want to buy a car from abroad can suffer from such innovations (registration ban).
“The transit of a car from the United States takes three months, and the average monthly supply is 10,000 cars. Now 30,000 cars are in transit. Even minor repairs, taking into account certification and registration, take about a month. Respectively, there will be 40,000 such cars, not yet registered, of which 92% with the status of to be recycled, that is, 36,800 cars,” Kovel said.
He considers it incorrect to take into account the status of recycling, which the United States accept for itself, since there it is done by the method of financial accounting of the residual value of a car, while the damage can be minor and in Ukraine they can be repaired for $2,500-3,000.
Kovel stressed that these restrictions will not force Ukrainians to refuse buying cars from abroad, and they will be forced to buy the same cars from the United States, for example, in Georgia or Latvia, where this business has long been established, but then they will serve the orders of Ukrainians and get receipts from customs clearance and other fees going to the budget of their countries. As a result, the car will cost a Ukrainian almost $3,000 more, taking into account the extension of the logistics chain, the need to bring cars from neighboring countries and other expenses.

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UKRAINIAN GOVERNMENT LIFTS ENTRY BAN FOR FOREIGN CITIZENS

The Ukrainian government has made several decisions changing the entry requirements for foreign citizens and stateless persons, the country’s State Border Guard Service said on Saturday. Under the government decree No. 477, approved on June 12, the temporary entry ban for foreigners is no longer effective.
Another decree, No. 480, of June 12, requires foreigners to have a relevant insurance policy and those arriving from countries with high number of coronavirus infections to undergo observation.
For the duration of the quarantine, foreigners and stateless persons (except permanent residents, refugees, or persons seeking additional protection) will be banned from entry if they do not have an insurance policy (certificate) to cover the costs relating to COVID-19 treatment and observation, the decree said.
Arriving from, or being a citizen of, a country with a high number of COVID-19 cases shall be ground for observation, the government said.
“To ensure the transportation of persons from state border checkpoints to observation facilities, the government has compelled regional and Kyiv city state administrations,” the agency said.
At the same time, a citizen (subject) of a country with a high number of COVID-19 infections, who has not been in that country in the previous 14 days, foreign diplomats and consular officials, representatives from accredited international missions and organizations and their family members, drivers and crew members of cargo transport vehicles, air, sea and river crews, members of train and locomotive brigades, participants in an external independent audit (with one accompanying person each), will not be required to undergo observation, unless there is a reason to believe that they have been in contact with a COVID-19 patient.
Also exempt from observation will be those who agree to self-isolate using an act-at-home electronic service.
A country is considered to have a high number of COVID-19 cases if it had at least 40 active cases per 100,000 population.
A list of such countries will be updated and submitted by the State Border Guard Service to the Foreign Ministry every three days.
Therefore, foreign citizens and stateless persons may cross the Ukrainian border from the effective date of the Decrees No. 477 and No. 480, providing they have legal grounds for entry, as stipulated in the Ukrainian border control law, and observe sanitary epidemiological rules.

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UKRAINE EXTENDS BAN ON EXPORT OF ANTI-EPIDEMIOLOGICAL PRODUCTS

The Cabinet of Ministers has extended until July 1 the ban on export of anti-epidemiological products. The government made the corresponding decision at a meeting on May 27.
“It is proposed to change the validity of the licensing regime for export of anti-epidemiological products until July 1, 2020. In fact, we extend the ban on export of such goods by one month,” Minister of Economic Development, Trade and Agriculture Ihor Petrashko said.
The government also allowed export of waterproof laboratory suits and disposable isolation medical gowns of types 1-5 of protection.

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