Investment regulation - Ukraine
Market entry requirements
There are no restrictions or regulations for foreign investors to enter the market. No investment approval is required for foreign investors to enter the Ukrainian market. There is no centralised Investor Identification or Registration Number required in the market.
Ukrainian nationals are not permitted to hold Ukrainian securities in CBL.
Foreign investors are not permitted to be part of the founding shareholding of broadcasting organisations (radio and television) and neither an individual nor a legal entity may concentrate 35% of the media market share – national, regional or local.
Foreign investors are not permitted to participate or invest in companies manufacturing weapons or alcoholic spirits.
Prior approval is required in the following cases:
- Participation of foreign investors in the privatisation of certain strategic companies must be approved on a case-by-case basis by Parliament.
- The approval from the AMC is required if an investor intends to reach a 25% holding in any company.
- A further approval is required from the AMC when the investor wishes to increase its stake from 25% (or higher) to 50%.
- The Anti-Monopoly Committee can impose financial penalties and nullify any of the above types of transactions which were executed without its prior approval.
- Investors who plan to acquire a substantial stake (10% or more ) in a financial institution or plans to increase the stake, control or voting rights up to 10%, 25%, 50% and 75% in the financial institution are required to obtain written approval from the respective Regulators:
- The National Commission of Securities and Stock Market for acquiring or increasing a substantial stake in the professional participants of the stock market, that is, brokers, custodians, asset management companies, depositories and stock exchanges.
- The National Commission on State Regulation of Financial Services Market for non-banking institutions, for example, insurance companies, pension funds.
- In order to obtain the approval, the investor should file a set of documents to the respective Regulator. The documents are to be submitted at least one month prior to the purchase or increase of the substantial stake. The investor has to provide data on its financial standing, business reputation and shareholding structure.
For details of the local domestic disclosure requirements, please refer to the Disclosure Requirements.