PROBLEMS OF THE USE OF GUARANTEES FOR CONDUCTING INVESTMENT ACTIVITY IN UKRAINE

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PROBLEMS OF THE USE OF GUARANTEES FOR CONDUCTING INVESTMENT ACTIVITY IN UKRAINE

Journal Title: «Приватне та публічне право» - Year 2018, Vol 2, Issue

Abstract

The article is devoted to the state guarantees of investment protection, which are provided by the legislation of Ukraine and the norms of international law. Constant investment in the economy, in the creation and modernization of fixed assets of all sectors of the economy, their technical re-equipment, the creation of new tools and technologies have an important role in ensuring the country’s social and economic development. The improvement of legal norms that protect both domestic and foreign investments is a necessary component in increasing Ukraine’s investment attractiveness. The article analyzes the state of current legislation in the sphere of guaranteeing the investment activity and the state of scientific development of these issues. The author identifies problems of the mechanism of legislative assurance of guarantees of investment protection and offers ways for their solution. State guarantees of investment protection is a system of legal norms that are aimed at protecting investments and do not deal with issues of financial and economic activity of participants of investment process and payment of taxes, duties (compulsory payments). State guarantees of investment protection cannot be canceled or limited in relation to investments made during the period of these guarantees. Economic Code of Ukraine, the laws of Ukraine “On investment activity” and “On the regime of foreign investments” set forth such guarantees as a guarantee against changes in legislation, from forced seizures, illegal actions of authorities and its officials, and others. Despite such consolidation, the mechanism for providing such guarantees is extremely weak. Many procedural details remain unresolved. Investors are afraid to invest in the economy of Ukraine, because the legislator passes new laws that cancel the previous ones or introduce restrictions that prevent the use of applicable legal norms. In practice, the methods established by law are not applied to protect the rights of investors. An investor may completely lose his investment, incur significant losses in conducting business because of changes in the tax or currency system, non-fulfillment of obligations by the other party which he concludes contracts with, and in case of other events that do not depend on the investor. Ukrainian legislation provides a number of measures aimed at eliminating discrimination of the domestic investor, in a part of providing benefits in taxation and other mandatory payments. At the same time, some of the legally established means of protecting the rights of investors are aimed at protecting the rights and interests of foreign, not domestic investors. To eliminate such unjustified discrimination, it is proposed to foresee a real rather than declaratively identical approach to protecting the rights and legitimate interests of investors, both domestic and foreign. Such approach will contribute the improvement of the investment climate in Ukraine. To date, the Ukrainian economy needs investment inflows, thus for attracting investors the state should create a favorable investment climate, ensure the stability of the current legislation, guarantee investors the real protection of rights granted to them by the legislation of Ukraine. Only after applying the listed measures one can hope for an opportunity to increase the investment flow into the economy of the Ukraine. An analysis of Ukrainian legislation and legal practice shows that it is necessary to legislatively establish the real and not declarative responsibility of governmental officials for non-enforcement or improper execution of the decisions of court. Legislation regulating the issues of securing and implementing guarantees of investment activity needs to be improved, and the legislator should guarantee the stability of such legislation and the possibility of practical use of the methods of protecting the rights and legitimate interests of investors enshrined in the current legal acts.

Authors and Affiliations

А. С. Макаренко

Keywords

EP ID EP589529
DOI -
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