Government initiating creation of agency for exports support

The Cabinet of Ministers of Ukraine has drawn up a bill on the creation of an agency for exports support and will send it to the parliament for approval, First Vice Premier of Ukraine Valeriy Khoroshkovsky has said.

"The agency will provide government guarantees for exporters when they receive investments and promote their products abroad," he said in an interview with the Den newspaper.

"I hope it will be passed by the end of this parliamentary session," he added.

As reported, in late October 2011 the government submitted to the parliament a bill on state financial support for export activity (bill No. 9373), which foresees a creation of the State Financial Institution on National Exports Support.

In May 2012, the law was adopted in spite of considerable criticism from parliamentary experts. In particular, according to the conclusion of main juridical management of the Verkhovna Rada, among the significant flaws of the law is the non-transparency of the procedures for the adoption of decisions to provide state financial support to definite business entities, and the draft's not being in line with WTO rules on subsidies and compensation measures.

Moreover, according to the main juridical department, the concept of the bill and its constituent articles do not meet the standards of the Constitution and Ukrainian law. The bill contradicts the conceptual bases of the legal regulation of state finances, insurance and the work of financial establishments.

Ukrainian President Viktor Yanukovych vetoed the law and on July 5 the parliament finally rejected it.