LAW OF UKRAINE

of September 18, 1991 No. 1560-XII

About investing activities

This Law determines general legal, economic and social terms of investing activities in the territory of Ukraine.

It is aimed at providing equal protection of the rights, interests and imushchestvo of subjects of investing activities irrespective of patterns of ownership, and also at effective investment of economy of Ukraine, development of the international economic cooperation and integration.

I. General provisions

Article 1. Investments

Investments are all types of the property and intellectual values put in objects entrepreneurial and other types of activity as a result of which the profit (income) is created and/or the social and ecological effect is reached.

Can be such values:

money, purpose-oriented bank deposits, shares, shares and other securities (except bills of exchange);

personal and real estate (buildings, constructions, equipment and other material values);

property rights of intellectual property;

set of the technical, technology, commercial and other knowledge which is drawn up in the form of the technical documentation, skills and know-how necessary for the organization of this or that type of production, but is not patented ("know-how");

rights to use by the earth, water, resources, buildings, constructions, equipment, and also other property rights;

other values.

The investments directed to creation (acquisition), reconstruction, technical retrofitting of fixed assets which expected useful life exceeds one year are performed in the form of capital investments.

Article 2. Investing activities

1. Investing activities is set of practical actions of citizens, legal entities and the state on realization of investments.

2. The investing activities are performed on basis:

investment which is performed by citizens, the non-state companies, economic associations, the unions and societies, and also the public and religious organizations, other legal entities based on ownership in common;

the state investment which is performed by public authorities at the expense of means of the government budget, borrowed funds, and also the state companies and organizations at the expense of own and borrowed funds;

local investment which is performed by local government bodies at the expense of means of local budgets, borrowed funds, and also the utility companies and organizations at the expense of own and borrowed funds;

the state support for implementation of investment projects;

the foreign investment performed by foreign states, legal entities and citizens of foreign states;

the joint investment performed by legal entities and citizens of Ukraine, legal entities and citizens of foreign states.

3. The investing activities are provided by implementation of investment projects and carrying out transactions with corporate laws and other types of property and intellectual values.

The investment project is complex of the actions (organization-legal, managerial, analytical, financial and technical) determined on the basis of national value system and tasks of innovative development of national economy and aimed at the development of separate industries, sectors of economy, productions, regions which accomplishment is performed by subjects of investing activities with use of values according to provisions of this Law.

The investment project is drawn up in the form of the planned settlement documents necessary and sufficient for reasons for investment, the organization and management of works on project implementation within certain cost and the term of its realization.

The paragraph the fourth is excluded.

The investment project for which implementation the state support can be provided is developed according to the procedure and in form, the approved central executive body which provides forming of state policy in the field of economic development.

The investment project for which implementation the state support can be provided shall contain:

the summary (project objective, the directions of use of investments, project compliance to strategic program documents of the state, forecast volumes of production (goods, services), the need for investments, need of providing with the parcel of land or the rights to it (lease, superficies, emphyteusis) for project implementation, the main performance indicators of the project, including energy efficiency, examination conclusions according to the legislation);

general characteristic of condition and the problems connected with development of objects and subjects of investing activities (the characteristic of objects and subjects, products (goods, services), analysis results of the markets of products (goods, services), the analysis of competitive potential of the subject, in particular identification of opportunities of development, threats and problems in activities);

organizational plan, plans of marketing and productive activity;

the project implementation plan (the term of enforcement of fixed assets, staffing, organizational structure and project management, development of infrastructure, action for protection of the surrounding environment, financing sources of the project and payments for obligations of the subject of investing activities, guarantee and the scheme of return of investments if such return is provided by the project);

financial plan (assessment of financial and economic possibility of the project);

information on project risks, precautionary measures and risks insurance in the cases provided by the law;

forecast of economic and social effect of project implementation;

the forecast of receipts in budgets and the state trust funds;

document package with reasons for impact assessment on the surrounding environment.

The investment project may contain additional data depending on field of activity in which project implementation is provided.

The investment project can join the construction project developed according to the legislation.

In this Law the term "state investment project" is used in the value given in the Budget code of Ukraine.

4. The investing activities with securities are performed according to the procedure, established by the legislation on the capital markets.

5. The state support for implementation of investment projects is performed according to the procedure, established by this Law, with observance of requirements of the Law of Ukraine "About government assistance to subjects of managing" after its entry into force, except the state support of the investment projects performed on the terms of public-private partnership including in the form of concession which is provided according to the procedure, established by the laws of Ukraine "About public-private partnership" and "About concession" and except the state support of the investment projects performed for implementation of the investment project with considerable investments on conditions and according to the requirements established by the Law of Ukraine "About the state support of investment projects with considerable investments;

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