Ukraine Law Encourages Mining Investment

摘要

Ukraine has enacted new legislative provisions on production sharing agreements (PSAs) to encourage private investment in the country's mining and extraction industries. President Petro Poroshenko signed Law No. 1690-Ⅶ, amending Article 14 of the Ukrainian Tax Code to improve tax treatment of PSAs. The law revises the definitions of "investor" and "operator" in PSAs and changes provisions on payment of value-added tax. As amended, Subsection 14.1.83, Article 14 stipulates that private parties in bilateral PSAs are referred to as "investors," while private parties in multilateral PSAs are referred to as "operators." The law, which takes effect Nov. 7, also amends Article 337 on VAT payments by investors and operators in PSAs to provide that multilateral PSAs may select one operator to would pay VAT.