Law of Ukraine
“On Investment Activity”
Date of Entry into Force:
November 19, 1991
This law sets forth basic legal, economic and social conditions of carrying out investment activity within the territory of Ukraine.
For the purposes of this law, investment is defined as any type of property or intellectual value that is contributed to objects of entrepreneurial or other kinds activity that result in profit (income) or achieve specific social effects. An investment activity consists of the totality of practical activities of citizens, and legal or state entities aimed at carrying out an investment.
Article 3 defines peculiarities of activity in innovations as an investment activity.
Article 12 stipulates the following forms of state regulation of investment activity:
regulation of state investments, regulation of conditions of carrying out investment activity and control over carrying out investment activity by all investors and persons engaged in said investment activity.
Regulation of conditions for carrying out investment activity is exercised in the following ways:
- providing financial assistance in the form of grants, subsidies, subventions, loans from the budget granted for the development of some regions or industries or productions;
- state norms and standards;
- antimonopoly measures;
- privatization of state property;
- determination of conditions for the use of land, water and other natural resources;
- pricing policy;
- carrying out state expertise of investment programs and construction projects;
- other measures.
The law lays down protection of investments and provides state guarantees for stability of conditions of carrying out investment activity, observation of rights and legal interests of subjects of entrepreneurial activity.
Article 19 of this law further stipulates that investments can not be nationalized or put in requisition (used) without payment, nor can measures be taken with similar effect (result) without payment. Such measures may be implemented only on the basis of legislative acts of Ukraine with payment for all damages caused as a result of termination of investment activity.