Adopts new PPP rules

On 24 February 2016 the Ukrainian Parliament adopted Law of Ukraine No. 817-VIII "On Amending Certain Laws of Ukraine Regarding Removal of Regulatory Barriers to Developing Public Private Partnerships and Encouraging Investments to Ukraine". The law aims to increase the level of certainty and protection of investors in such transactions. In particular, the amendments (1) provide certain protection for private partners against imposition by the government of economically unjustified regulated prices and tariffs;(2) stipulate that if an agreement is terminated due to the public partner’s failure to perform it, the public partner must reimburse the private partner for any investments made and losses incurred by the latter; (3) provide that the parties may resort to international arbitration for disputes under PPP agreements involving non-residents and companies with foreign investments and that the parties may choose the venue for hearing such disputes. The Law has entered into effect on 24 May 2016.

• Type:

  • Entry and establishment (Ownership and control)
  • Promotion and facilitation (Other)

• Industry:

  • Services (Construction)

• Sources:

  • Vasil Kisil & Partners, Rebuilding the infrastructure: legal developments in PPP, concessions and infrastructure, http://www.lexology.com/library/detail.aspx?g=6aa5fd40-7da5-4593-bd63-6d8f2a2153de, 02 Mar 2016