09 октября 2006

    The Ukrainian Journal of Business Law / June 2006.

    There is a whole series of normative acts for regulation of investment activity in Ukraine. The main in this system is the On Investment Activity Act of Ukraine as of 18 September 1991. Separate attention in Ukrainian legislation is assigned to the defense of foreign investors` rights, specifically, there is a special the On Defense of Foreign Investments in the Territory of Ukraine Act of Ukraine of 10 September 1991.

    Article 3 of the abovementioned law protects the owners of foreign investments against possible loss of their property, resulting from requisitioning, i. e. switch of rights for investment to the Ukrainian Nation. The State retains the right to make requisition of foreign investments only in exceptional cases — in force majeure circumstances: natural disasters, crashes, epizootics. But even in these circumstances, the right to receive compensation, adequate to losses suffered, from Ukraine is guaranteed to the foreign investor.

    As for investments in Ukrainian tourism, additional requirements or restrictions in this sphere for foreigners are not established. Absence of special norms means that the status of foreign investors, investing funds in the sphere of tourism, is regulated by norms of the On Investment Activity, On Defense of Foreign Investments in the Territory of Ukraine Acts of Ukraine and sub legislative acts in this sphere.

    In our point of view, the return of tax facilities for foreign investors by the Ukrainian parliament can contribute to bringing foreign investment to the economy of Ukraine, including the tourist industry. In particular, Ukraine can feel a positive economic effect if foreign investment projects will be released from taxation for the period of the first years of their implementation.