WORLD TRADE RESTRICTED WT/ACC/UKR/116/Rev.1 25 July 2007 ORGANIZATION (07-3178) Working Party on the Original: English Accession of Ukraine ACCESSION OF UKRAINE Draft Notification on Industrial Subsidies Revision The following submission, dated 18 July 2007, is being circulated at the request of the Delegation of Ukraine. __________ WT/ACC/UKR/116/Rev.1 Page 2 The following description of measures of support to industries 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 Zhytomyr and Chernihiv oblasts); - Contamination by sulphur DGHP Mining and Chemical Mills (Yavoriv district of L'viv oblast); and - Flooding in Carpathian region. In addition, special investment regime has been established in the Autonomous Republic of Crimea aimed at encouraging investments in public health protection, recreation and 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. 1 Referred to in document WT/ACC/UKR/79 page 9. WT/ACC/UKR/116/Rev.1 Page 3 Each of eleven zones and nine Priority Territories is established under a particular statute: Zones Location Duration and date Legislative basis established Donetsk, Donetsk 60 years from Law of Ukraine No. 356 dated 24 December 1998 "On the Oblast 21 July 1998 Special Economic Zone and Special Regime of investment activities in Donetsk Oblast". Mariupol, Donetsk 60 years from Law of Ukraine No. 356 dated 24 December 1998 "On the Oblast 21 July 1998 Special Economic Zone and Special Regime of investment activities in Donetsk Oblast". Uzhgorodskiy and 30 years from Law of Ukraine No. 2322 dated 22 March 2001 "On the Mukachevskiy 9 January 1999 Special Economic Zone "Zakarpattia'" raions, Zakarpatska Oblast Yavorivskiy Raion, 20 years from Law of Ukraine No. 402 dated 15 January 1999 "On the Lviv Oblast 17 February 1999 Special Economic Zone "Yavoriv'" Kovel, Volyn Oblast 20 years from President of Ukraine Decree No. 702 dated 22 June 1999 "On 1 January 2000 the Special Economic zone "Interport-Kovel'" Mykolaiv (on the 30 years from Law of Ukraine No.1909 dated 13 July 2000 "on the Special territory of ship- 1 January 2000 Economic Zone "Mykolaiv'", Decree of the Cabinet of building enterprises) 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 25 years from Law of Ukraine No.1607 dated 23 March 2000 "On the Territory of the 1 January 2000 Special (Free) Economic Zone "Porto Franco" on the Odesa Sea Trade Territory of the Odesa Sea Trade Port" Port) Reni, Odesa Oblast 30 years from Law of Ukraine No.1605 dated 23 March 2000 "On the 17 May 2000 Special Economic Zone 'Reni'" Kerch, Autonomous 30 years from Law of Ukraine No.2189-III of 21 December 2000 "On a Republic of Crimea 1 January 2000 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 20 years from Law of Ukraine No. 721 dated 3 June 1999 "On the Special Oblast 30 July 1998 Economic Zone "Slavutych'" Kurortopolis 20 years from Law of Ukraine No. 514 dated 18 March 1999 "On the Truskavets, Lviv 1 January 2000 Special Economic Zone for Tourism and Recreation Oblast "Kurortopolis Truskavets"" Priority Territories Page 4 WT/ACC/UKR/116/Rev.1 Special regime of Cities of Artemivsk, Vehledar, Horlivka, Dzerzhynsk, 30 years from Law of Ukraine No. 356 dated 24 December 1998 "On Special investment activity on the Dymytrov, Dobropillia, Donetsk, Yenakiyeve, 21 July 1998 Economic Zones and Special Regime of Investment Activity in territories of priority Zhdanivka, Kirovske, Kostiantynivka, Kramatorsk, Donetsk Oblast"; Decree of the Cabinet of Ministries of Ukraine economic development in Krasnoarmiysk, Krasnyi Lyman, Makiyivka, No. 1255 of 11 August 2000 approving the list of priority Donetsk Oblast Mariupol, Novohrodivka, Selidove, Sloviansk, economic activities on the territories of priority development in Snizhne, Torez, Shakhtarsk, Druzhkivka, Khartcysk, Donetsk Oblast; Decree of the Cabinet of Ministries of Ukraine Zugres, Illovaysk as well as the Amvroziyivskiy, No. 1065 of 18 June 1999 approving the Procedure of Volnovaskiy, Kostyantynivsk, Marianskiy and consideration of investment projects that are being realized in Slovanskiy, Starobeshivskiy and Shahtarskiy raions priority economic activities on territories of priority development in Donetsk Oblast. Special regime of Cities of Brianka, Krasnodon, Sverdlovsk, 30 years from Law of Ukraine No. 970 dated 15 July 1999 "On the Special investment activity on the Pervomaisk, Stakhaniv, Krasniy Luch, as well as the 2 February 1999 Regime of Investment Activity in Territories of Priority territories of priority Antrаtsytivskiy, Kreminskiy and Krasnodonskiy Development in Luhansk Oblast"; Decree of the Cabinet of economic development in raions Ministries of Ukraine No. 1968 of 25 October 1999 "On approving Luhansk Oblast of the list of priority economic activities in the territory of priority economic development in Luhansk Oblast and of the Procedure of consideration of investment projects that are being realized in priority economic activities on territories of priority development in Luhansk Oblast". Special regime of All of Zakarpatska Oblast 15 years from Law of Ukraine No. 357 dated 24 December 1998 "On a Special investment activity in 29 January 1999 Regime of Investment Activity in Zakarpatska Oblast", Decree of Zakarpatska Oblast the Cabinet of Ministries of Ukraine No. 548 of 6 April 1999 "On approving of the list of priority economic activities in the territory of Zakarpatska Oblast to which the Special regime of investment activity is applied". Special regime of Cities of Yalta, Alushta, Sudak, Feodosia, Kerch, 30 years from Law of Ukraine No. 2189-III of 21 December 2000 "On a Special investment activity on Krasnoperekopsk, Armiansk; Krasnoperekopskiy and 1 January 2000 Regime of Investment Activity at Territories of Priority territories of priority Leninskiy raions Development and the Special Economic Zone "Port Crimea" in the development in the Autonomous Republic of Crimea"; Decree of the Cabinet of autonomous Republic of Ministries of Ukraine No. 212-r of 23 May 2001 "On approval of Crimea the Procedure of consideration of investment projects that are being realized 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, to which the Special regime of investment activity is applied". Special regime of Shostka, Sumy Oblast 30 years from Law of Ukraine No. 1251 of 18 November 2003 "On the Special investment activity in the 1 January 2000 Regime of Investment Activity in the City of Shostka of Sumy WT/ACC/UKR/116/Rev.1 City of Shostka, Sumy Oblast", Decree of the Cabinet of Ministries of Ukraine No1175 of Oblast 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 No. 1552 of 12 October 2000 "On approval of the Procedure of consideration of investment projects which are being realized in the priority economic activities on the territory of the City of Shostka, Sumy Oblast". Special regime of Korostenskiy, Novohrad-Volynskiy, Luhynskiy, 30 years from Law of Ukraine No. 1276 dated 3 December 1999 "On the Special investment activity on Narodytskiy, Ovrutskiy,