Ukrainian parliament adopted additional economic and social guarantees in response to COVID-19 proliferation
On 30 March, Ukrainian parliament passed yet another law (draft law no. 3275) to support business and society in light of COVID-19 proliferation and measures introduced to combat it.
Corporate matters and securities
The deadline for disclosure of annual information on securities issuers has been extended. The deadline to hold the annual general meetings has been extended for the issuers of securities (including LLCs and additional liability companies); annual general meetings may be held remotely. In case term of office of the supervisory boards members of joint-stock companies expires in 2020, it is automatically extended until the next general meeting.
Lessees that cannot use leased property due to the quarantine are exempted from lease payments during the whole quarantine period.
Labour code now regulates flexible worktime arrangement and remote work (work at home). An employee does not have to be subject to internal labour regulations of the employer, including in cases of flexible worktime arrangement and remote work. In case of production downtime caused by quarantine, an employee should be paid 2/3 of salary (ambiguity removed). Local state administrations are now authorized to order measures to be taken by employers to prevent spread of epidemies and pandemics. Cabinet of Ministers is now authorized to suspend issuance of work permits to foreign citizens.
Employees may be eligible for short-time work compensation if reduction of working hours is connected with measures imposed to stop proliferation of COVID-19. Status of unemployed person will be given from the day of registration at employment service regardless of whether there are suitable employment options or if these options are exhausted. Unemployment compensation will be paid from the day the person is recognized unemployed. It is not required to attend employment service in person to receive unemployment benefit.
Banking and Finance
Interest rates under credit agreements may not be raised during the quarantine. If annual report of a bank is not published by 30 April 2020, it should be published within 5 business days following the general meeting of shareholders. Similar rule applies to banking groups: if annual report of a banking group is not published by 1 June 2020, it should be published within 30 business days after annual report of the bank (which is member of the group) is published.
During the quarantine, limitation periods for bringing a number of types of lawsuit and claims (including those related to defects of supplied goods) are suspended. Participation in court hearing via videoconference is now possible outside of another court’s premises. Procedural time limits in civil, commercial and administrative procedures are extended for the period of quarantine.
Marginal prices for wholesale and retail sales of anti-epidemic goods are set. Resale of mentioned goods at higher prices is prohibited. Increased administrative liability for officials and citizens for breaking the order of formation and application of prices and tariffs – a fine up to UAH 5,100. Liability of the companies for violation of the legislation on prices and pricing – a fine up to UAH 34,000.
Other notable changes
Any ordinary inspections of businesses are prohibited until 30 June 2020 (except for inspection of high-risk companies, inspections related to state-regulated prices as well as sanitary and epidemiology rules). COVID-19 prevention and treatment methods allowed by a list of selected countries (EU, UK, Switzerland, Israel, USA, Canada, Australia, Japan, China) may be allowed in Ukraine under decision of the Ministry of Health. Privatization of major state-owned assets (“Large Privatization”) is suspended during quarantine.
Ukrainian citizens who have returned from abroad are obliged to self-isolate and follow other anti-epidemic restrictions. On 2 April 2020, the Law was signed by the President. The Law enters into force from the day of its publication.
Should you have any questions about new legislation or want to know how these changes affect you, please contact us.
The recent Coronavirus disease (COVID-19) outbreak has created new challenges for the business environment that require a thoughtful, practical and informed approach from leaders. We have prepared a web-site page with materials how to embed resilience and help your business to face this challenging times. KPMG in Ukraine is ready to help you find the answers to your business questions related to coronavirus. Please write your questions with the subject “Business request as of coronavirus” to us by mail — email@example.com.
Stay up to date with what matters to you
Gain access to personalized content based on your interests by signing up todaySign up today