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WORLD TRADE RESTRICTED WT/ACC/UKR/116 15 April 2004 ORGANIZATION (04-1692) Working Party on the Original: English Accession of Ukraine ACCESSION OF UKRAINE Submission from Ukraine Draft Notification of Industrial Subsidies The following submission, dated 8 April 2004, is being circulated at the request of the Delegation of Ukraine _______________ WT/ACC/UKR/116 Page 2 The following description of measures of assistance to industry is intended solely for the purpose of information. Ukraine wishes it to be noted that it does not consider that any of the measures listed constitutes a subsidy prohibited by Article 3 of the ASCM. It further notes that analogous notifications made by WTO Members under ASCM Article 25.2 are, in accordance with Article 25.7, without legal consequences and that, as indicated in G/SCM/6/Rev.1, such notifications do not prejudge the effects of the measure under the SCM Agreement, or the nature of the measure itself. In preparing this notification, Ukraine has taken into account applicable "General Rules" listed in G/SCM/6/Rev.1 (A) HORIZONTAL PROGRAMMES - Special Economic Zones and Priority Territories Policy objective and/or purpose: Eleven "Special economic zones" (also described as "Free Economic Zones or FEZs) and nine "Priority Territories with Special Investment Regimes" have been established. They are intended to encourage investment, both domestic and foreign, in geographically defined depressed regions to offset: − Structural unemployment resulting from decommissioning of uneconomic coal mines (Donetsk, Lugansk, and Volyn Oblasts); and − Structural unemployment resulting from closure of military production complexes (Kharkiv and Shostka). Economic and social impact of: − Accident at Chernobyl NPP (Slavutych and districts and cities in the Zhytomer and Chernihiv oblasts); − Contamination from Sulphur DGHP Mining and Chemical Mills (Yavoriv district of L'viv oblast); and − Flooding in Carpathian region. In addition, a the special investment regime has been established in the Autonomous Republic of Crimea aimed at encouraging investments in the public health protection and recreation-tourism sectors, preservation and efficient management of available recreation resources, also at industrial production development in the peninsula. Assistance programs available in a zone or special territory are particular to that zone or territory. Background and authority: The basic enabling authority for the establishment of Special Zones and Priority Territories is contained in: − Law of Ukraine "On General Principles of Creation and Functioning of Special (Free) Economic Zones" of 13 October 1992 (with changes and amendments) No.2673-XIII/921. Each of the eleven Zones and nine Priority Territories is established under a particular statute: Zones 1 Referred to in document WT/ACC/UKR/79 page 9. WT/ACC/UKR/116 Page 3 Location Duration and date established Legislative basis Donetsk, Donetsk Oblast 60 years from 21 July 1998 Law of Ukraine No. 356 dated 24 December 1998 "On the Special Economic Zone and Special Regime of investment activities in Donetsk Oblast". Mariupol, Donetsk 60 years from 21 July 1998 Law of Ukraine No. 356 dated 24 December 1998 Oblast "On the Special Economic Zone and Special Regime of investment activities in Donetsk Oblast". Uzhgorodskiy and 30 years from 9 January 1999 Law of Ukraine No.2322 dated 22 March 2001 "On Mukachevskiy raions, the Special Economic Zone "Zakarpattia'" Zakarpatska Oblast Yavorivskiy Raion, Lviv 20 years from 17 February 1999 Law of Ukraine No. 402 dated 15 January 1999 "On Oblast the Special Economic Zone "Yavoriv'" Kovel, Volyn Oblast 20 years from 1 January 2000 President of Ukraine Decree No. 702 dated 22 June 1999 "On the Special Economic zone "Interport-Kovel'" Mykolaiv (on the 30 years from 1 January 2000 Law of Ukraine No.1909 dated 13 July 2000 "on the territory of ship-building Special Economic Zone "Mykolaiv'", Decree of the enterprises) Cabinet of Ministries of Ukraine No.1175 of 26 July 2000 approving the list of priority economic activities on the territories of priority development in Zhytomyr Oblast, Chernigiv Oblast, in the City of Shostka, Sumy Oblast and territory of special economic zone "Mykolayv'. Odesa (on the Territory 25 years from 1 January 2000 Law of Ukraine No.1607 dated 23 March 2000 "On of the Odesa Sea Trade the Special (Free) Economic Zone "Porto Franco" on Port) the Territory of the Odesa Sea Trade Port" Reni, Odesa Oblast 30 years from 17 May 2000 Law of Ukraine No.1605 dated 23 March 2000 "On the Special Economic Zone ‘Reni'" Kerch, Autonomous 30 years from 1 January 2000 Law of Ukraine No.2189-III of 21 December 2000 Republic of Crimea "On a Special Regime of Investment Activity at Territories of Priority Development and the Special Economic Zone "Port Krym" in the Autonomous Republic of Crimea" Slavutych, Kyiv Oblast 20 years from 30 July 1998 Law of Ukraine No. 721 dated 3 June 1999 "On the Special Economic Zone "Slavutych'" Kurortopolis 20 years from 1 January 2000 Law of Ukraine No. 514 dated 18 March 1999 "On Truskavets, Lviv Oblast the Special Economic Zone for Tourism and Recreation "Kurortopolis Truskavets"" Priority Territories Page 4 WT/ACC/UKR/116 Special regime of investment Cities of Artemivsk, Vehledar, Horlivka, Dzerzhynsk, 30 years from Law of Ukraine No. 356 dated 24 December 1998 "On Special Economic activity on the territories of Dymytrov, Dobropillia, Donetsk, Yenakiyeve, Zhdanivka, 21 July 1998 Zones and Special Regime of Investment Activity in Donetsk Oblast"; priority economic Kirovske, Kostiantynivka, Kramatorsk, Krasnoarmiysk, Decree of the Cabinet of Ministries of Ukraine No1255 of 11 August 2000 development in Donetsk Krasnyi Lyman, Makiyivka, Mariupol, Novohrodivka, approving the list of priority economic activities on the territories of Oblast Selidove, Sloviansk, Snizhne, Torez, Shakhtarsk, priority development in Donetsk Oblast; Decree of the Cabinet of Druzhkivka, Khartcysk, Zugres, Illovaysk as well as the Ministries of Ukraine No1065 of 18 June 1999 approving the Procedure of Amvroziyivskiy, Volnovaskiy, Kostyantynivsk, Marianskiy consideration of investment projects that are realizing in priority economic and Slovanskiy, Starobeshivskiy and Shahtarskiy raions activities on territories of priority development in Donetsk Oblast Special regime of investment Cities of Brianka, Krasnodon, Sverdlovsk, Pervomaisk, 30 years from Law of Ukraine No.970 dated 15 July 1999 "On the Special Regime of activity on the territories of Stakhaniv, Krasniy Luch, as well as the Antrаtsytivskiy, 2 February 1999 Investment Activity in Territories of Priority Development in Luhansk priority economic Kreminskiy and Krasnodonskiy raions Oblast"; Decree of the Cabinet of Ministries of Ukraine No1968 of development in Luhansk 25 October 1999 "On approving of the list of priority economic activities Oblast in the territory of of priority economic development in Luhansk Oblast and of the Procedure of consideration of investment projects that are realizing in priority economic activities on territories of priority development in Luhansk Oblast" Special regime of investment All of Zakarpatska Oblast 15 years from Law of Ukraine No.357 dated 24 December 1998 "On a Special Regime activity in Zakarpatska 29 January 1999 of Investment Activity in Zakarpatska Oblast", Decree of the Cabinet of Oblast Ministries of Ukraine No548 of 6 April 1999 "On approving of the list of priority economic activities in the territory of Zakarpatska Oblast for which the Special regime of investment activity is applied" Special regime of investment Cities of Yalta, Alushta, Sudak, Feodosia, Kerch, 30 years from Law of Ukraine No.2189-III of 21 December 2000 "On a Special Regime activity on territories of Krasnoperekopsk, Armiansk; Krasnoperekopskiy and 1 January 2000 of Investment Activity at Territories of Priority Development and the priority development in the Leninskiy raions Special Economic Zone "Port Crimea" in the Autonomous Republic of autonomous Republic of Crimea"; Decree of the Cabinet of Ministries of Ukraine No212-r of Crimea 23 May 2001 "On approval of the Procedure of consideration of investment projects that are realizing in priority economic activities on territories of priority development and in the SEZ "Port Crimea" in the autonomous Republic of Crimea, and of the list of priority economic activities in the territory of the autonomous Republic of Crimea, for which the Special regime of investment activity is applied" Special regime of investment Shostka, Sumy Oblast 30 years from Law of Ukraine No. 1251 of 18 November 2003 "On the Special Regime activity in the City of 1 January 2000 of Investment Activity in the City of Shostka of Sumy Oblast", Decree of Shostka, Sumy Oblast the Cabinet of Ministries of Ukraine No1175 of 26 July 2000 approving the list of priority economic activities on the territories of priority development in Zhytomyr Oblast, Chernigiv Oblast, in the City of Shostka, Sumy Oblast and territory of special economic zone "Mykolayv'.; Decree of the Cabinet of Ministries of Ukraine No1552 of 12 October 2000 "On approval of the Procedure of consideration of investment projects which are realizing in the priority economic activities on the territory of the City of Shostka, Sumy Oblast" Special regime of investment Korostenskiy, Novohrad-Volynskiy, Luhynskiy, 30 years from Law of Ukraine No.1276 dated 3 December 1999 "On the Special Regime activity on territories of Narodytskiy, Ovrutskiy, Olevskiy, Malynivskiy,
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