The Cabinet of Ministers of Ukraine published the Resolution "Some issues of deregulation of economic activity"

May 2, 2019 · News

On April 27, 2019, the Cabinet of Ministers of Ukraine published the Resolution No. 367 of 27.04.2019 "Some issues of deregulation of economic activity" focused on the deregulation in several areas of business activity at once.

Interaction with the State Ecological Inspection of Ukraine:

  • Cancellation of approval of loading technology at the port

According to the Resolution of the Cabinet of Ministers No. 269, the enterprises of the maritime industry had to approve the technology of loading of each type of cargo with the State Ecological Inspection of Ukraine. Such technology is usually described in the WTD (Working Technological Documentation), which is developed and approved by the port operator.

Considering that the procedure of WTD's approval, including terms and grounds for refusal, have not been defined by laws, the Inspection could review the WTD for months, eventually establishing many of its own reservations to the loading technology.

Therewith, the State Ecological Inspection of Ukraine has repeatedly detained vessels, refusing to complete radiological control of cargo due to the claims against the terminal`s WTD.

Previously, in defending the client's interests in one of such cases, Legrant had proved that the requirement to approve the WTD is illegal, because:

  • The approval is a type of permitting document;
  • The list of permitting documents is determined de jure, but not on the base of the Cabinet of Ministers' resolutions.

Therefore, the cancellation of WTD's approval is the decision of the legislator that quite rightfully and expected by the port industry.

  • Abolition of control of segregated ballast

The Resolution has also amended significant changes to the procedure for controlling the discharge of ballast water, namely, abolishment of the control of segregated ballast. Previously, the State Ecological Inspection of Ukraine had the right to inspect the segregated ballast for compliance with the maximum permissible concentrations (MPC) in case of emitting of visible floating debris of oil products or other pollutants at moment of discharge. Such inspections often resulted in vessel downtime and significant financial losses to the shipowners.

  • The procedure for detecting the pollutant discharges from vessels has brought in line with the requirements of the International Convention for the Prevention of Pollution from Ships (MARPOL 73/78 Convention)

Among other things, the procedures for detecting the pollutant discharges have brought in line with provisions of MARPOL 73/78 Convention. For example, the inspection of the ballast water is no longer irrespective of the MPC. In turn, the Resolution establishes the set of requirements, which the vessels shall respect at the time of water discharging:

- The vessel should be in motion at the time of discharging;

- The oily mixture shall be treated using equipment for oil filtration that meets the requirements of MARPOL 73/78 Convention;

- There are determined the limits on concentrations of oil in the oil-containing mixture at the point of discharge without its diluting;

- On oil tankers, the oily mixture shall not be mixed with residues of oil cargo.

At the same time, the innovations concerning the inspection of water on vessels providing by the State Ecological Inspection shall not apply until entry into force of the Procedure for Conducting Inspections, Taking Water Samples and Analysis. At the same time, the Procedure is planned to be adopted in June 2019 (according to the Action Plan of the State Ecological Inspection of Ukraine on preparation of draft regulatory acts for 2019).

Deregulation in other areas

In addition to minimizing corruption risks and simplifying procedures at the seaport, the Resolution of the Cabinet of Ministers touched upon deregulation in many other areas. In particular:

  • It has been improved the mechanism of application of the model charter of LLC, which meets the requirements of the Law of Ukraine "On Limited Liability Companies and Additional Liability Companies";

The new mechanism assumes:

- Multi-variant provisions of the charter, which the founders will be able to choose;

- The form of selecting different variants of the provisions of the charter containing hints and explanations of the consequences and peculiarities of this or that choice that is allowable to the user, etc;

  • The procedure for assigning addresses to the objects of construction and real estate has been simplified and unified;
  • The status of the individual electronic cabinets of the customers in interaction with the bodies of the SACI is determined, as well as the expansion of their functions;
  • The banking institutions have provided the access to state registers, including the Register of Civil Status Acts, which will allow for a more comprehensive assessment of the borrowers' solvency; etc.