of January 16, 2003 No. 436-IV
The economic code of Ukraine establishes the legal basis of economic activity (managing) which is based on variety of subjects of managing of different patterns of ownership according to the Constitution of Ukraine.
The economic code of Ukraine aims to provide increase of business activity of subjects of managing, development of entrepreneurship and on this basis increase in efficiency of social production, its social orientation according to requirements of the Constitution of Ukraine, to approve public economic order in economic system of Ukraine, to promote its harmonization with other economic systems.
1. This Code determines the basic principles of managing in Ukraine and governs the economic relations arising in the course of the organization and implementation of economic activity between subjects of managing and also between these subjects and other participants of the relations in the sphere of managing.
1. Participants of the relations in the sphere of managing are the subjects of managing, consumers, public authorities and local government bodies allocated with economic competence and also citizens, public and other organizations which act as founders of subjects of managing or perform concerning them organizational and economic powers on the basis of the property relations.
1. Economic activity in this Code is understood as the activities of subjects of managing in the sphere of social production directed to production and sales of products, performance of works or rendering the services of cost nature having price definiteness.
2. The economic activity performed for achievement of economic and social results and for the purpose of profit earning is entrepreneurship, and subjects of entrepreneurship - entrepreneurs. Economic activity can be performed also without the profit earning purpose (non-commercial economic activity).
3. The activities of not business entities directed to creation and maintenance of necessary material conditions of their functioning which are performed with participation or without participation of subjects of managing are economic ensuring activities of not business entities.
4. The sphere of the economic relations is constituted by the economic and production, organizational and economic and intraeconomic relations.
5. The property and other relations arising between subjects of managing in case of direct implementation of economic activity are economic and production.
6. The organizational and economic relations in this Code are understood as the relations developing between subjects of managing and subjects of organizational and economic powers in process of management of economic activity.
7. The relations developing between structural divisions of the subject of managing, and the relation of the subject of managing with its structural divisions are intraeconomic.
the property and personal non-property relations regulated by the Civil code of Ukraine;
the land, mountain, forest and water relations, the relations on use and protection of plant and animal life, the territories and objects of natural and reserved fund, atmospheric air;
the financial relations with the assistance of subjects of managing arising in the course of forming and budget performance monitoring of all levels;
administrative and other relations of management with the participation of subjects of managing in which public authority or local self-government is not the subject allocated with economic competence and directly does not perform organizational and economic powers concerning the subject of managing;
The relations with participation of subjects of managing arising in the course of fulfillment of requirements of the legislation governing the relations in the sphere of prevention and counteraction of legalization (washing) of income gained in the criminal way, to financing of terrorism and financing of distribution of weapons of mass destruction.
2. Features of regulation of the property relations of subjects of managing are determined by this Code.
3. Rules of this Code are applied to the economic relations arising from merchant shipping and which are not settled by the Maritime Code of Ukraine.
1. The legal economic order in Ukraine is created on the basis of optimum combination of market self-regulation of the economic relations of subjects of managing and state regulation of macroeconomic processes, proceeding from the constitutional requirement of responsibility of the state to the person for the activities and determinations of Ukraine as sovereign and independent, democratic, social, constitutional state.
2. The constitutional bases of legal economic order in Ukraine constitute: the property right of the Ukrainian people to the earth, its subsoil, atmospheric air, water and other natural resources which are in limits of the territory of Ukraine, natural resources of its continental shelf, exclusive (sea) economic zone, performed on behalf of the Ukrainian people by public authorities and local government bodies in the limits determined by the Constitution of Ukraine; the right of each citizen to use natural objects of the property right of the people according to the law; ensuring protection of the rights of all persons of law of property with the state and managing, social orientation of economy, non-admission of use of property to the detriment of the person and society; the right of everyone to own, use and dispose of the property, results of the intellectual, creative activities; recognition of all persons of law of property equal before the law, inviolability of the right of private property, non-admission of illegal deprivation of property; economic variety, the right of everyone to the business activity which is not forbidden by the law, determination only the law of the legal basis and guarantees of entrepreneurship; ensuring protection of the competition with the state in business activity, non-admission of monopoly abuse in the market, illegal restriction of the competition and unfair competition, determination of competition rules and regulations of anti-monopoly regulation only the law; providing ecological safety with the state and maintenance of ecological equilibrium in the territory of Ukraine; providing proper, safe and healthy working conditions with the state, consumer protection; mutually beneficial cooperation with other countries; recognition and action in Ukraine of the principle of supremacy of law.
3. Subjects of managing and other participants of the relations in the sphere of managing perform the activities within the established legal economic order, observing requirements of the legislation.
1. The general principles of managing in Ukraine are:
ensuring economic variety and equal protection of managing by the state of all subjects;
freedom of business activity in the limits determined by the law;
free capital movement, goods and services in the territory of Ukraine;
restriction of state regulation of economic processes due to the need of providing social orientation of economy, fair competition in entrepreneurship, ecological protection of the population, consumer protection and safety of society and the state;
protection of national producer;
prohibition of illegal intervention of public authorities and local government bodies, their officials in the economic relations.
1. The relations in the sphere of managing are governed by the Constitution of Ukraine, this Code, the laws of Ukraine, regulatory legal acts of the President of Ukraine and the Cabinet of Ministers of Ukraine, regulatory legal acts of other public authorities and local government bodies, and also other regulations.
1. The state, public authorities and local government bodies are not subjects of managing.
2. Decisions of public authorities and local government bodies on the financial questions arising in the course of forming and budget performance monitoring of all levels and also from administrative and other relations of management, except organizational and economic in which the public authority or local government body is the subject allocated with economic competence are accepted on behalf of this body and within his powers of authority.
3. Economic competence of public authorities and local government bodies is implemented on behalf of the relevant public or municipal institution. Direct participation of the state, public authorities and local government bodies in economic activity can be performed only on the basis, within powers and method which are determined by the Constitution and the laws of Ukraine.
1. In the sphere of managing the state performs the long-term (strategic) and current (tactical) economic and social policy directed to realization and optimum coordination of interests of subjects of managing and consumers, different public layers and the population in general.
2. Economic strategy - the rate of economic policy elected by the state expected the long term and directed to the solution of large-scale economic and social tasks, tasks of cultural development, ensuring economic safety of the state, preserving and enhancement of its economic potential and national wealth, increase in national well-being. Economic strategy includes determination of the priority purposes of economy, means and methods of their realization, proceeding from content of the objective processes and tendencies which are available in the national and world economy and considering legitimate interests of subjects of managing.
3. Economic tactics - set of the next purposes, tasks, means and methods of their achievement for realization of strategic rate of economic policy in the specific conditions developing in current period of development of economy.
4. Legal fixing of economic policy is performed by determination of fundamentals of domestic and foreign policy, in forecasts and programs of economic and social development of Ukraine and its certain regions, programs of activities of the Cabinet of Ministers of Ukraine, target programs of economic, scientific and technical and social development, and also the corresponding legal acts.
1. The main directions of economic policy which are determined by the state are:
the structural and industry policy directed to implementation by the state of progressive changes in structure of economy enhancement of the cross-industry and intra-branch proportions, stimulation of development of the industries determining scientific and technical progress, providing competitiveness of domestic production and growth of level of living of the population. Components of this policy are industrial, agrarian, construction also other spheres of economic policy on which the state performs rather independent package of measures of the stimulating impact;
the investment policy directed to creation to subjects of managing of necessary conditions for attraction and concentration of funds for requirements of expanded reproduction of fixed assets of production, mainly in industries which development is determined as priorities of structural and industry policy, and also ensuring effective and responsible use of these means and control of it;
the depreciation policy directed to creation to subjects of managing of optimum and equivalent conditions of ensuring process of simple reproduction of the fixed business and non-productive assets mainly on qualitatively new technical and technological basis;
the policy of institution transformations directed to forming of rational multistructure economic system by transformation of the relations of property, implementation of privatization of economy, privatization and nationalization of business assets, providing on own basis of development of different patterns of ownership and managing, equivalence of the relations of exchange between subjects of managing, the state support and protection of all forms of effective managing and liquidation of any illegal economic structures;
the price policy directed to regulation by the state of the relations of exchange between subjects of the market for the purpose of ensuring equivalence in implementation process of national product, observance of necessary equal share of the prices between industries and types of economic activity and also ensuring stability of wholesale and retail prices;
the anti-monopoly competition policy directed to creation of optimum competitive environment of activities of subjects of managing, ensuring their interaction on the terms of non-admission of manifestations of discrimination of one subjects by others, first of all in the sphere of exclusive pricing and due to decline in quality of products, services, assistance to growth of effective socially oriented economy;
the budget policy directed to optimization and rationalization of forming of the income and use of the state financial resources, increase in efficiency of the state investments into economy, coordination of state and local interests in the sphere of the interbudget relations, regulation of public debt and ensuring social justice in case of redistribution of national income;
the tax policy aimed at providing economically reasonable tax burden of managing subjects, stimulation of socially necessary economic activity of subjects, and also respect for principle of social justice and the constitutional guarantees of the rights of citizens in case of the taxation of their income;
the monetary policy aimed at providing economy with economically necessary amount of money supply, achievement of effective cash flow, attraction of financial resources of subjects of managing and the population in bank system, stimulation of use of credit resources on requirement of functioning and development of economy;
the monetarist policies directed to establishment and maintenance of the parity national currency rate of rather foreign currencies, stimulation of growth of the state currency holdings and their effective use;
the external economic policy directed to regulation of the relations of subjects of managing by the state with foreign subjects of managing and protection of the national market and domestic producer.
2. The state performs the environmental policy providing rational use and full reproduction of natural resources, creation of safe conditions of activity of the population.
3. In the social and economic sphere the state performs social policy of consumer protection, wages policy and the income of the population, to politician of employment, politician of social protection and social security.
1. Implementation by the state of economic strategy and tactics in the sphere of managing goes for creation of economic, organizational and legal conditions under which subjects of managing consider indicators of forecast and program documents of economic and social development in the activities.
2. The law determines the principles of the state forecasting and development of programs of economic and social development of Ukraine, system of forecast and program documents, requirements to their content, and also general procedure for development, approval and accomplishment of forecast and program documents of economic and social development, power and responsibility of public authorities and local government bodies by these questions.
3. The main forms of state planning of economic activity are the State program of economic and social development of Ukraine, the Government budget of Ukraine, and also other state programs concerning economic and social development, procedure for development, task and which realization are determined by the law on state programs.
4. Authorities of the Autonomous Republic of Crimea, local executive bodies and local government bodies according to the Constitution of Ukraine are developed and approve programs of social and economic and cultural development of the corresponding administrative and territorial units and perform planning of economic and social development of these units.
5. The privileges provided by the law and benefits in implementation of economic activity cannot be provided to the subjects of managing which are not considering the public concerns displayed in program documents of economic and social development.
1. The state applies various means and mechanisms of regulation of economic activity to realization of economic policy, accomplishment of target economic and other programs and programs of economic and social development.
2. Fixed assets of the regulating impact of the state on activities of subjects of managing are:
licensing, patenting and quoting;
application of standard rates and limits;
price regulation and rates;
provision of investment, tax and other benefits;
provision of grants, compensations, target innovations and subsidies.
3. Conditions, amounts, spheres and procedure for application of separate types of means of state regulation of economic activity are determined by this Code, other legal acts, and also programs of economic and social development. Establishment and cancellation of privileges and benefits in economic activity of separate categories of subjects of managing are performed according to this Code and other laws.
4. Restrictions on implementation of business activity, and also the list of types of activity in which the entrepreneurship is forbidden are established by the Constitution of Ukraine and the law.
1. The state order is means of state regulation of economy by forming on contractual (contractual) basis of structure and amounts of products (works, services) necessary for priority state needs, placement of public contracts on delivery (purchase) of these products (performance of works, rendering services) among subjects of managing, irrespective of their pattern of ownership.
2. The public contract is the agreement signed by the state customer on behalf of the state with the subject of managing - the contractor of the state order in which economic and legal obligations of the parties are determined and governs their economic relations.
3. Deliveries of products for priority state needs are provided at the expense of the means of the Government budget of Ukraine and other sources of financing attracted for this purpose, according to the procedure, determined by the law.
Acquisition of products for priority state requirements at the expense of public funds is performed according to requirements of the Law of Ukraine "About public purchases".
4. it is excluded
5. The principles and general procedure for forming of the state order on delivery (purchase) of products, performance of works, rendering services for satisfaction of priority state needs are determined by the law.
6. Features of the relations arising in connection with deliveries (purchase) for priority state needs of agricultural products, food, arms and military equipment, and also other specially certain (specific) goods are regulated according to the law.
1. Licensing, patenting of certain types of economic activity and quoting are the means of state regulation in the sphere of managing aimed at providing single state policy in this sphere and protection of economic and social interests of the state, society and certain consumers.
2. The legal basis of licensing, patenting of certain types of economic activity and quoting is determined proceeding from constitutional right of everyone on implementation of the business activity which is not forbidden by the law and also the principles of managing established in article 6 of this Code.
3 The relations connected with licensing of types of economic activity are regulated by the law.
4. In the spheres connected with trade for money (cash, checks, and it is equal with use of other forms of calculations and payment cards in the territory of Ukraine), by exchange of cash currency values (including transactions with the cash means of payment expressed in foreign currency and with payment cards), in the sphere of gaming and household services, other spheres determined by the law patenting of business activity of subjects of managing can be performed.
The trade patent is the state certificate certifying the right of the subject of managing to be engaged in certain types of business activity during fixed term. The special trade patent is the state certificate certifying the right of the subject of managing to special procedure for the taxation according to the law. The procedure for patenting of certain types of business activity is established by the law.
5. In necessary cases the state applies quoting, establishing limiting amount (quotas) of production or turnover of certain goods and services. The procedure for quoting of production and/or turnover (including export and import), and also distributions of quotas is established by the Cabinet of Ministers of Ukraine according to the law.
1. In the sphere of managing technical regulations, standards, codes of common practice and specifications are applied.
2. Application of standards of codes of common practice or their separate provisions is obligatory for:
subjects of managing, if obligation of application of standards or codes of common practice it is established by regulatory legal acts;
agreement parties (contract) concerning development, production or delivery of products if in it there is reference to certain standards or codes of common practice;
the producer or the product supplier, if it constituted the declaration of conformity of products to certain standards or applied designation of these standards in its marking.
3. In case of production of products for export if the agreement (contract) determines other requirements, than those that are established by technical regulations application of provisions of the agreement (contract) is allowed if they do not contradict the legislation of Ukraine regarding requirements to process of production of products, its storage and transportation in the territory of Ukraine.
1. The state can provide grants to subjects of managing: on support of production of the vital food, on production of the vital medicines and means of rehabilitation of persons with disability, on import purchases of separate goods, services of transport providing socially important transportations and also to the subjects of managing which appeared in critical social and economic or ecological situation for the purpose of financing of capital investments at the level necessary for maintenance of their activities, on the purpose of technical development which give considerable economic effect, and also in other cases provided by the law.
2. The state can perform compensations or surcharges to agricultural producers for the agricultural products sold by them to the state.
3. The bases and procedure for application of means of the state support of subjects of managing are determined by the law.
1. System of the taxation in Ukraine, taxes and fees are established only by the laws of Ukraine. The system of the taxation is based on the principles of economic feasibility, social justice, combination of interests of society, state, territorial bulks, subjects of managing and citizens.
optimum combination of the fiscal and stimulating functions of the taxation;
stability (invariance) within several years of general rules of the taxation;
elimination of double taxation;
coordination with the taxation systems of other countries.
3. Rates of taxes have normative nature and cannot individually be established for the certain subject of managing.
4. The system of the taxation in Ukraine shall provide the extreme amount of taxes and fees which can be levied from subjects of managing. At the same time taxes and other obligatory payments which according to the law join in the price of goods (works, services) or belong on their cost, are paid by subjects of managing irrespective of results of their economic activity.
1. The state performs anti-monopoly competition policy and promotes development of competitiveness in the sphere of managing on the basis of the nation-wide programs approved by the Verkhovna Rada of Ukraine on representation of the Cabinet of Ministers of Ukraine.
2. State policy in the sphere of the economic competition, restriction of monopolism in economic activity and protection of subjects of managing and consumers against unfair competition is performed by authorized bodies of the government and local government bodies.
3. Public authorities and local government bodies, their officials are forbidden to adopt acts and to make actions which eliminate the competition or unreasonably assist certain competitors in business activity, or introduce restriction in the market, not stipulated by the legislation. By the law exceptions of this rule for the purpose of ensuring national security, defense or other public concerns can be established.
4. Competition rules and regulations of anti-monopoly regulation are determined by this Code and other laws.
1. Subjects of managing have the right without restrictions independently to perform the economic activity which is not contradicting the legislation.
2. Subjects of managing are subject to state registration according to this Code and the law.
3. The state exercises control and supervision of economic activity of subjects of managing in the following spheres:
preserving and expenditures of means and material values subjects of the economic relations - on condition and reliability of financial accounting and the reporting;
financial, credit relations, currency control and the tax relations - on observance by subjects of managing of credit obligations to the state and settlement discipline, to observance of requirements of the foreign exchange legislation, tax discipline;
the prices and pricing - concerning observance by subjects of managing of state prices of products and service;
monopolism and the competition - concerning observance of the anti-monopoly and competitive legislation;
land relations - on use and protection of lands; the water relations and forestry - on use and protection of waters and the woods, reproduction of water resources and the woods;
production and work - on safety of production and work, compliance with the law about work; on fire, ecological, sanitary and hygienic safety; on observance of regulations and rules which establish mandatory requirements concerning conditions of implementation of economic activity;
consumption - behind quality and safety of products and services;
foreign economic activity - concerning technological, economic, ecological and social safety.
4. Public authorities and officials, representatives to exercise the state control and the state supervision of economic activity, their status, general terms, procedure of control and supervision are determined by the laws.
5. Illegal intervention and preventing of economic activity of subjects of managing from public authorities, their officials when implementing of the state control and supervision by them are forbidden.
6. Public authorities and officials shall perform inspection and checks of activities of subjects of managing openmindedly, objectively and quickly, observing requirements of the legislation, respecting the rights and legitimate interests of subjects of managing.
7. The subject of managing has right to be informed about results of inspection and checks of its activities not later than in thirty days after their termination if other is not provided by the law. Actions and decisions of state bodies of control and supervision, and also their officials who carried out inspection and inspection can be appealed by the subject of managing in the procedure established by the legislation.
8. All subjects of housekeeping, separate divisions of legal entities allocated for separate balance shall keep primary (operational) account of results of the work, constitute and submit according to requirements of the law the statistical information and other data determined by the law and also messages (except citizens of Ukraine, foreigners and stateless persons performing economic activity and registered according to the law as entrepreneurs) financial accounting and to submit the financial reporting according to the legislation.
It is forbidden to demand from subjects of housekeeping, separate divisions of the legal entities allocated for separate balance, provision of statistical information and other data which are not provided by the law or with violation of the procedure established by the law.
1. The state provides protection of the rights and legitimate interests of subjects of managing and consumers.
recognitions of availability or lack of the rights;
recognitions fully or partially invalid acts of public authorities and local government bodies, acts of other subjects contradicting the legislation, violating the rights and legitimate interests of the subject of managing or consumers; recognitions invalid economic transactions on the bases provided by the law;
recoveries of the provision existing before violation of the rights and legitimate interests of subjects of managing;
the terminations of the actions violating the right or creating threat of its violation;
award to accomplishment of obligation in nature;
applications of penalties;
applications of operational and economic sanctions;
applications of administrative sanctions;
establishments, changes and terminations of economic legal relationship;
by other methods provided by the law.
3. The procedure for protection of the rights of subjects of managing and consumers is determined by this Code, other laws.
1. For the purpose of assistance to development of national economy, its integration into the world economy, and also creating favorable conditions for business activity in Ukraine Chambers of Commerce and Industry as voluntary associations of entrepreneurs and the organizations can be created. The Chamber of Commerce and Industry is the non-state self-controlled authorized organization created on the principles of membership having the status of the legal entity.
2. The state assists Chambers of Commerce and Industry in accomplishment of authorized tasks by them.
3. The procedure for education and activities of Chambers of Commerce and Industry is established by the law.
4. Subjects of managing - employers have the right to consolidation in the organization of employers for realization and protection of the rights.
5. The organizations of employers are the self-controlled authorized organizations which are formed on the principles of voluntariness and equality for the purpose of representation and protection of legitimate interests of employers. The organizations of employers can unite in the unions and other authorized associations of employers.
6. The procedure for education and the principles of organization activity and associations of employers are determined by the law.
1. The state exercises control of public sector of economy according to fundamentals of domestic and foreign policy.
2. Subjects of managing of public sector of economy are the subjects acting on the basis only of state-owned property and also subjects, the state share in which authorized capital exceeds fifty percent or constitutes the size providing to the state the right of decisive impact to economic activity of these subjects.
3. Powers of subjects of management in public sector of economy - the Cabinet of Ministers of Ukraine, the ministries, other authorities and the organizations concerning subjects of managing are determined by the law.
The specified subjects of management in public sector of economy can make the decisions necessary for preparation for realization and implementation of public-private partnership (concession) which are obligatory to execution by the companies, organizations, the organizations which are in the sphere of their management.
4. Types of economic activity which is allowed to be performed to exclusively state companies, organizations and the organizations can be determined by the law.
5. The state exercises the right of state-owned property in public sector of economy through system of organizational and economic powers of relevant organs of management concerning the subjects of managing belonging to this sector and performing the activities on the basis of the right of economic maintaining or the right of operational management.
6. Legal status of the certain subject of managing in public sector of economy is determined by authorized bodies of management according to requirements of this Code and other laws. The relations of governing bodies with the called subjects of managing in the cases provided by the law can be performed on a contract basis.
7. The state applies to subjects of managing in public sector of economy all means of state regulation of economic activity provided by this Code, considering features of legal status of these subjects.
8. The law establishes features of implementation of anti-monopoly competition policy and development of competitiveness in public sector of economy which shall be considered when forming the appropriate state programs.
9. The procedure of recognition by the bankrupt is applied rather state companies taking into account the requirements specified in Chapter 23 of this Code.
10. The governing bodies performing organizational and economic powers concerning subjects of managing of public sector of economy are forbidden to delegate to other subjects of power according to the order state-owned property and powers on management of activities of subjects of managing, except for delegations of the called powers according to the law to local government bodies and other cases provided by this Code and other laws.
11. The subject of managing of public sector of economy enters the anti-corruption program according to the procedure, determined by the law.
1. Local government bodies perform the powers concerning subjects of managing only in the limits determined by the Constitution of Ukraine, the laws on local self-government and other laws providing features of implementation of local self-government in the cities of Kiev and Sevastopol, other laws. Local government bodies can perform also separate powers of executive bodies conferred to them by the law concerning subjects of managing.
2. The relations of local government bodies with subjects of managing in the cases provided by the law can be performed also on a contract basis.
3. The legal acts of bodies and officials of local self-government accepted within their powers are obligatory for execution by all participants of the economic relations who are located or perform the activities in the corresponding territory.
4. Illegal intervention of bodies and officials of local self-government in economic activity of subjects of managing is forbidden. The edition of legal acts of local government bodies which set the restrictions on turnover of separate types of goods (services) which are not provided by the law in the territory of the corresponding administrative and territorial units is not allowed.
5. Bodies and officials of local self-government have the right to take a legal action about recognition invalid acts of the companies, other subjects of managing limiting the rights of territorial bulks, powers of local government bodies.
6. Bodies, official and officials of local self-government bear responsibility for the activities to subjects of managing which bases, types and procedure are determined by the Constitution of Ukraine and the law.
7. Disputes on recovery of the violated rights of subjects of managing and compensation of the damage caused to them owing to decisions, actions or failure to act of bodies, official or officials of local self-government when implementing of the powers by them are permitted judicially.
1. Control of economic activity in utility sector of economy is exercised through system of organizational and economic powers of territorial bulks and local government bodies concerning the subjects of managing belonging to utility sector of economy and performing the activities on the basis of the right of economic maintaining or the right of operational management.
2. Legal status of the certain subject of managing in utility sector of economy is determined by authorized bodies of management according to requirements of this Code and other laws. The relations of governing bodies between the specified subjects in the cases provided by the law can be performed on a contract basis.
3. Subjects of managing of utility sector of economy are the subjects acting on the basis only of municipal property and also subjects in which authorized capital the share of municipal property exceeds fifty percent or constitutes the size providing to local government bodies the right of decisive impact to economic activity of these subjects.
4. By the law features of implementation of anti-monopoly competition policy of rather utility sector of economy, and also additional requirements and guarantees of the property right of the Ukrainian people and the right of municipal property can be established in case of realization of insolvency proceeding concerning subjects of managing of utility sector of economy.
5. Local government bodies bear responsibility for results of activities of the subjects of managing belonging to utility sector of economy on the bases, in the limits and procedure determined by the law.
6. The subject of managing of utility sector of economy enters the anti-corruption program according to the procedure, determined by the law.
1. The state supports the competition as the competition between subjects of managing providing thanks to their own achievements of certain economic benefits by them therefore consumers and subjects of managing have opportunity of the choice of necessary goods and at the same time certain subjects of managing do not determine goods sales terms in the market.
2. The public authorities and local government bodies governing the relations in the sphere of managing are forbidden to adopt acts or to make actions which determine privileged position of subjects of managing of that or other pattern of ownership or put separate categories of subjects of managing in unequal position or otherwise break competition rules. In case of violation of this requirement public authorities to which powers control and supervision of observance of the anti-monopoly and competitive legislation belongs and also subjects of managing can challenge such acts in the procedure established by the law.
3. Authorized bodies of the government and local government bodies shall perform market analysis and competition level on it and to take the measures for streamlining of the competition of subjects of managing provided by the law.
4. The state provides protection of trade secret of subjects of managing according to requirements of this Code and other laws.
1. The legal basis of carrying out monitoring of government assistance to subjects of managing and control of admissibility of such help for the competition is established by the legislation on government assistance to subjects of managing.
1. The dominant position of the subject of managing which gives it the chance independently is recognized exclusive or together with other subjects to limit the competition in the market of certain goods (works, services).
2. The provision of the subject of managing which share in the market of certain goods exceeds the size established by the law is exclusive.
3. Also the provision of subjects of managing in the market of goods in the presence of other conditions determined by the law can be recognized exclusive.
4. In case of social necessity and for the purpose of elimination of negative impact on the competition public authorities perform concerning the existing exclusive formations of measure of anti-monopoly regulation according to requirements of the legislation and measure of demonopolization of economy, provided by the appropriate state programs, except for natural monopolies.
5. Public authorities and local government bodies are forbidden to adopt acts or to make the actions directed to economic strengthening of the existing subjects of managing monopolists and education without good causes of new exclusive educations and also to make decisions on exclusively centralized distribution of goods.
1. Condition of the goods market in case of which the satisfaction of demand in this market is more effective on condition of lack of the competition as a result of technological features of production (in connection with essential reduction of expenses of production per unit of products in process of production growth in volumes) and goods (services) made by subjects of managing cannot be replaced in consumption by others in this connection demand in this goods market depends on the change in price for such goods, than demand for other goods (services) less, - it is considered natural monopoly.
2. Subjects of managing of any pattern of ownership (exclusive educations) making (implementing) goods in the market which is in condition of natural monopoly can be subjects of natural monopoly.
3. The law on natural monopolies determines fields of activity of subjects of natural monopolies, public authorities, local government bodies, other bodies regulating activities of the specified subjects, and also other questions of regulation of the relations arising in the goods markets of Ukraine which are in condition of natural monopoly, and in the adjacent markets with the assistance of subjects of natural monopolies.
1. Monopoly abuse is considered:
imposing of such terms of the contract which put partners in unequal position, or the additional terms which are not concerning the subject of the agreement including imposing of the goods not necessary to the partner;
restriction or cessation of production, and also withdrawal of goods from turnover for the purpose of creation or support of deficit in the market or establishments of monopoly prices;
other actions made for the purpose of creation of obstacles of access to the market (exit from the market) subjects of managing;
establishment of exclusively high or discrimination prices (rates) for the goods that leads to violation of the rights of consumers or limits the rights of certain consumers;
establishment of exclusively low prices (rates) for the goods that leads to competition restriction.
1. Illegal transactions between subjects of managing transactions or the coordinated actions directed on are recognized:
establishment (maintenance) of monopoly prices (rates), discounts, allowances (surcharges), markups;
distribution of the markets by the territorial principle, sales amount or purchases of goods, to their assortment or around consumers or on other signs - for the purpose of their monopolization;
elimination from the market or restriction of access to it of sellers, buyers, other subjects of managing.
1. Discrimination of subjects of managing by authorities is recognized this Code:
prohibition of creation of the new companies or other organizational forms of managing in any sphere of economic activity, and also establishment of restrictions for implementation of separate types of economic activity or production of certain types of goods for the purpose of competition restriction;
compulsion of subjects of managing to the priority conclusion of agreements, first-priority sales of goods to certain consumers or to the accession to the economic organizations and other associations;
decision making about the centralized distribution of goods leading to monopoly position in the market;
establishment of prohibition on sales of goods from one region of Ukraine in another;
provision to certain entrepreneurs of the tax and other benefits putting them in privileged position concerning other subjects of managing that leads to market monopolization of certain goods;
restriction of the rights of subjects of managing on acquisition and sales of goods;
establishment of prohibitions or restrictions of rather certain subjects of managing or groups of entrepreneurs.
2. Discrimination of subjects of managing is not allowed. By the law exceptions of provisions of this Article for the purpose of ensuring national security, defense, public concerns can be established.
2. Unfair competition is unauthorized use of goodwill of the subject of managing, creation of obstacles to subjects of managing in the course of the competition and achievement of illegal benefits in the competition, illegal collection, disclosure and use of trade secret, and also other actions qualified according to part one of this Article.
3. The unfair competition attracts legal responsibility of persons if their actions have negative impact on the competition in the territory of Ukraine irrespective of where such actions are made.
1. Unauthorized use of goodwill of the subject of managing are recognized: unauthorized use of others designations, promotional materials, packagings; unauthorized use of goods of other producer; copying of appearance of product of other producer; comparative advertizing if in such advertizing are violated requirements of the legislation of Ukraine about advertizing, about protection against unfair competition or such advertizing it is possible to qualify as unfair entrepreneurial practice.
2. Use without the permission of person of others name, the commercial name, trademark authorized on that, other designations, and also belonging to other person of promotional materials, etc. that can lead to mixing with activities of other subject of the managing having priority to their use is illegal.
3. Use in the commercial name of own name of the citizen is lawful if to own name any distinctive element which excludes mixing with activities of other subject of managing increases.
4. Unauthorized use of goods of other producer is introduction in economic circulation under the designation of goods of other producer by changes or removal of designations of the producer without the permission of person authorized on that.
5. Copying of appearance of product is reproduction of appearance of product of other subject of managing and its input in economic circulation without unambiguous specifying of the producer of the copy that can lead to mixing with activities of other subject of managing. Copying of appearance of product or its parts is not recognized illegal if such copying is caused only by their functional application.
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