Law of Ukraine

"On Ratification of the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Federal Republic of Germany on Financial Cooperation
(Allocations of Year 2006)"

Date of entry into force:
November 30, 2008

The present Law ratifies the Agreement between the Cabinet of Ministers of Ukraine and the Government of the Federal Republic of Germany on financial cooperation (allocations of year 2006), signed March 26, 2008 in Kyiv ("the Agreement").

Pursuant to Article 1 of the Agreement, the Government of the Federal Republic of Germany provides a possibility for the Cabinet of Ministers of Ukraine, or other beneficiaries jointly chosen by the Cabinet of Ministers of Ukraine and the Government of the Federal Republic of Germany, to receive the following funds from "Kreditanstalt fur Wiederaufbau (KfW)" - the Reconstruction Credit Institute ("KfW"):
  • loans up to 16,500,000 euro for the "Energy Efficiency I" project, provided that the inspection carried out by instruction of the Government of the Federal Republic of Germany shows that the project is eligible for support. The following loan conditions shall apply: repayment term – 40 years, including 10 year grace period; annual interest rate – 0.75%; liability commission on unpaid amounts – 0.25% annually; allocation and transfer expenses will be defined in appropriate agreements;
  • grants for auxiliary measures necessary to implement and follow up the "Energy Efficiency I" project, up to 1,000,000 euro (one million euro).

Furthermore, according to the Agreement, the Government of the Federal Republic of Germany provides a possibility for the Cabinet of Ministers of Ukraine, or, under the guarantee of the Cabinet of Ministers of Ukraine, for another beneficiary jointly chosen by the Cabinet of Ministers of Ukraine and the Government of the Federal Republic of Germany, to receive the following amounts:
  • in addition to the above amounts, KfW loans up to 100,000,000 euro as part of the official cooperation for economic development and under conditions of collateral. These loans will be used for mixed financing loans or package loans under the Agreement on Financial Cooperation. The loan conditions will be defined in loan agreements concluded between the Creditor, the Borrower and the Project Performer;
  • for the "Energy Efficiency II" project, a preferential KfW loan up to 68,000,000 euro as part of the official cooperation for economic development, provided that the inspection carried out by instruction of the Government of the Federal Republic of Germany shows that the project is eligible for support as a project for economic development. The loan conditions will be defined in loan agreements concluded between the Creditor, the Borrower and the Project Performer. This project cannot be replaced by other projects.

The Agreement stipulates that the "Energy Efficiency I" project may be replaced by different projects, by mutual agreement between the Cabinet of Ministers of Ukraine and the Government of the Federal Republic of Germany. Also, should the Government of the Federal Republic of Germany provide the Cabinet of Ministers of Ukraine a possibility to receive further loans or grants from KfW for preparation of this project, or further grants for auxiliary measures required for the implementation and follow-up of this project, the provisions of this Agreement shall apply.

Article 2 of the Agreement states that the use of the above loans and grants, conditions of their provision and the contract allocation procedure are defined in agreements concluded between beneficiaries of loans and grants and KfW, which are subject to legal enactments effective in the Federal Republic of Germany and approval of the Cabinet of Ministers of Ukraine. The obligation to grant the above amounts becomes null and void if the appropriate loan and grant agreements have not been concluded within 8 years from the year of the allocation obligation. The time for these amounts expires after December 31, 2014.

According to the Agreement, the Cabinet of Ministers of Ukraine, unless acting as the borrower itself, shall guarantee the payments in euro to KfW to fulfill the borrower's obligations under the appropriate agreements. Furthermore, the Cabinet of Ministers of Ukraine, unless acting as the grant beneficiary itself, shall guarantee to KfW satisfaction of any possible claims on its behalf relating to the return of funds, which may arise according to financing agreements.

KfW is exempted from all taxes and other fees charged in Ukraine due to the conclusion and fulfillment of loan and grant agreements (Article 3 of the Agreement).

According to Article 4 of the Agreement, in respect of transporting of people and cargoes by marine, land or air transport in relation to provision of the loans and grants under this Agreement, the Cabinet of Ministers of Ukraine allows passengers and supplies free choice of carrier company, uses no means to exclude or limit equal participation of carrier companies – residents of the Federal Republic of Germany, and, if necessary, provides the permits necessary for participation of such companies.

The Agreement takes effect starting from the date of receipt by the Government of the Federal Republic of Germany of a written notice of the Cabinet of Ministers of Ukraine as to the completion of all internal procedures necessary for the entry of the Agreement into force.
Внимание! Информация устарела из-за того, что этот раздел временно не обновляется!


вверх