Discusses the legal requirements/options for joint venture/licensing in this market.
Last Published: 2/1/2019

Because Ukrainian businesses currently have limited access to financial resources, more Ukrainian companies are seeking to establish joint ventures (JV) with foreign investors as a means of accessing financing.  However, concerns remain over whether Ukraine has succeeded in establishing a sufficient legal framework to protect foreign investors.  U.S. companies pursuing this option should employ local legal counsel and seek to structure their entity as an off-shore business organization where international laws apply.
According to a Law No. 222-19, “On Licensing of Types of Economic Activities,” adopted on March 2, 2015, and amended on September 28, 2017, the business activities set below are subject to licensing (full list of business activities subject to licensing is available at http://zakon1.rada.gov.ua/laws/show/222-19

  • Granting guarantees and suretyships
  • Financial leasing
  • Factoring
  • Trust management of financial assets
  • Specific types of insurance as defined by the legislation
  • Lending funds with their further return
  • Granting loans including financial credits
  • Administration of private pension funds
  • Administration of financial assets for purchase of goods for groups of purchasers
  • Property management for financing constructions or real estate transactions
  • professional activity in securities market
  • transportation of passengers, dangerous goods and hazardous waste by river, sea, road, rail and air transport, international carriage of passengers and goods by road vehicles;
  • security guard activities
  • tour operator activity
  • brokering in employment abroad

Import and export licenses are required for some goods. The list of goods covered by the licensing regime and the license terms are updated annually by the Cabinet of Ministers. The current list of such products can be found in the Resolution of the Cabinet of Ministers of Ukraine No. 1018 On Approval of the List of Products subject to Import and Export Licensing and Respective Quotas for 2018, dated December 20, 2017. In 2018 the list includes: pharmaceuticals, paints and lacquers, dyes, hygiene products, cosmetic products, pedicure and manicure products, shaving aerosols and deodorants; lubricants, waxes, shoe polishes, insecticides, solvents, silicone, fire extinguishers and the chemicals that fill extinguishers; refrigerators and freezers, air-conditioners, humidifiers, and other selected industrial chemical products; fungicides, insecticides, herbicides, and plant growth adjusters.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.