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According to the new legislation, entities ordering products under the state defense order shall be allowed to carry out foreign economic activities.
The Verkhovna Rada, Ukraine's parliament, has passed bill No. 9122 to amend certain legislative acts regarding the procurement of imported products, works and services for defense purposes.
A total of 236 out of the 338 lawmakers registered in the session hall backed the draft law, an UNIAN correspondent reported Jan 17.
The Economic Code of Ukraine has been amended to include in the list of types of foreign economic activities the ones of government customers dealing with the state defense order, in cases specified by law.
Law "On the State Defense Order" establishes that the main targets of the defense order must not only be approved by the Cabinet of Ministers, but also coordinated with the Verkhovna Rada Committee, whose jurisdiction includes national security and defense issues.
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Also, it is established that the state customer, in case it gains the rights to import military goods and those containing state secrets, may conclude agreements (contracts) on the defense order for the supply (purchase) of imported products, works and services or to authorize to do so, solely to meet the needs of the state customer, business entities under its management.
If necessary, the government shall adjust basic targets of the defense order in coordination with the Rada Committee within the limits of expenditures approved by the State Budget.
If the purchase of products, works and services under the defense order constitutes a state secret, they can also be purchased from foreign business entities. Counterparts shall be selected by the state customer without the use of competitive procedures based on well-founded and documented results of market research.
The state customer shall sign with foreign legal entities – manufacturers or suppliers – a state contract in case such state customer has been authorized to import products, works and services in question.
Also, the state customer may conclude contracts with a Ukrainian company which has been authorized to export and import products, works and services in question.
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If the deal with a foreign legal entity is worth over EUR 5 million, a mandatory prerequisite for its conclusion shall be the receipt by Ukraine in person of the offset beneficiary, of the appropriate compensation.
Ukraine shall receive compensation by concluding and executing a compensation (offset) contract, which is a foreign economic agreement (contract) concluded in writing between the offset beneficiary and a foreign legal entity.
At the same time, compensation agreements may not be concluded under conditions of a special period (state of emergency), ongoing measures to ensure national security and defense, repelling and deterring armed aggression of the Russian Federation in Donetsk and Luhansk regions,
The law comes into force from the day following the day of its publication.