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LAW OF UKRAINE

of September 21, 1999 No. 1076-XIV

About economic activity in the Armed Forces of Ukraine

(as amended on 09-04-2015)

This Law determines the legal basis of implementation in the Armed Forces of Ukraine of economic activity, establishes conditions and guarantees of its organization and the state support.

Article 1. Economic activity in the Armed Forces of Ukraine

Economic activity in the Armed Forces of Ukraine is the specific activities of military units, institutions, organizations and organizations of the Armed Forces of Ukraine (further - military units) connected with ensuring their daily life activity and providing maintaining subsidiary farm, production, performance of works and rendering services, transfer to lease of personal and real military estate (except for arms, ammunition, the military and special equipment) in the limits and procedure determined by this Law.

Economic activity in the Armed Forces of Ukraine is performed for the purpose of receipt of additional sources of financing of life activity of troops (forces) for maintenance at the proper level of their combat and mobilization readiness. Economic activity in the Armed Forces of Ukraine shall not have an adverse effect on their combat readiness and fighting capacity. Involvement of the military personnel to production, performance of works and rendering the services which are not provided by this Law is not allowed.

The Cabinet of Ministers of Ukraine on the representation of the Ministry of Defence of Ukraine approved with the central executive body concerning economic policy approves types of military property, not privatizeable.

Article 2. The legislation on economic activity in the Armed Forces of Ukraine

The relations connected with implementation of economic activity in the Armed Forces of Ukraine are regulated by this Law and other regulatory legal acts.

Article 3. Subjects and types of economic activity in the Armed Forces of Ukraine

Business entities in the Armed Forces of Ukraine are military units, institutions, organizations and the organizations of the Armed Forces of Ukraine which contain at the expense of means of the Government budget of Ukraine, conduct the isolated economy, have the estimate of receipts and expenses, accounts in organizations of banks, seal with the image of the State Emblem of Ukraine and the name.

The list of types of economic activity which implementation is allowed to military units is determined by the Cabinet of Ministers of Ukraine.

Implementation of economic activity which according to the law is subject to licensing is performed by military units after receipt in accordance with the established procedure of the license without collection of payment for issue of such license.

Article 4. Registration of military units as business entities

The order of registration of military units as business entities in the Armed Forces of Ukraine is determined by the Cabinet of Ministers of Ukraine.

Article 5. Responsibility of military unit as business entity

And also for the damage and losses caused to the environment, the rights and interests of physical persons and legal entities and the state, the military unit as business entity bears the responsibility provided by the law and the agreement for failure to carry out or inadequate accomplishment of contractual commitments.

The military unit as business entity answers for the obligations the means arriving into its account on the relevant articles of the estimate (except the protected Articles), and in case of their insufficiency responsibility according to obligations of military unit is born by the Ministry of Defence of Ukraine.

Collection according to obligations of military unit cannot be turned on the property assigned to it.

Article 6. Restriction and termination of economic activity of military unit

Economic activity of military unit can be limited or stopped according to the decision of the Ministry of Defence of Ukraine according to the procedure, established by the Cabinet of Ministers of Ukraine.

Article 7. Features of transfer to lease or on the terms of the loan of personal and real estate in the Armed Forces of Ukraine

Military units can transfer without prejudice to combat and mobilization readiness the personal and real military estate assigned to them to lease to legal entities and physical persons.

The procedure for provision of permission to military units on transfer of the personal and real estate assigned to them to lease is established by the Cabinet of Ministers of Ukraine.

Provision in lease of arms, ammunition, the military and special equipment is forbidden.

Transfer of military property to lease to legal entities and physical persons is performed only on competitive basis taking into account need of maintenance at the proper level of combat and mobilization readiness. Conditions and procedure for carrying out tenders are determined by Fund of state-owned property of Ukraine in coordination with the Ministry of Defence of Ukraine.

The value assessment of the property which is subject to transfer to lease is made by the commissions which part specialists (authorized persons) of the Ministry of Defence of Ukraine or other body of military management and Fund of state-owned property of Ukraine or its regional department (representation) in the technique approved by the Cabinet of Ministers of Ukraine are.

The appraisal report of the property leased is approved with Fund of state-owned property of Ukraine or its regional department (representation) and affirms the Ministry of Defence of Ukraine.

The personal and real estate necessary for catering services of staff of the Armed Forces of Ukraine in stationary and field conditions, is transferred by military units on a grant basis to the winners of procedures of purchases of food services of staff of the Armed Forces of Ukraine determined according to the Law of Ukraine "About implementation of public procurements". Transfer of such personal and real estate is performed only under the agreement (agreements) of loan.

The list of the personal and real estate necessary for catering services of staff of the Armed Forces of Ukraine which is planned to be transferred under the agreement (agreements) of the loan to the winner of procedures of purchases of food services of staff of the Armed Forces of Ukraine, is noted in the announcement of holding procurement procedure.

The agreement (agreements) of the loan of the personal, real estate necessary for catering services of staff of the Armed Forces of Ukraine consists (consist) for the same term, as the relevant agreement (agreements) on purchase of food services of staff of the Armed Forces of Ukraine.

The standard agreement of the loan of the personal, real estate necessary for catering services of staff of the Armed Forces of Ukraine affirms the Ministry of Defence of Ukraine.

The personal and real estate transferred on a grant basis on the terms of the loan according to parts seven - the ninth this Article, is used by the user only for catering services of staff of the Armed Forces of Ukraine in stationary, field conditions. Use of this property in other purposes is forbidden.

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