Ukrainian govt submits bill on FDI screening to Parliament
Direct foreign investments (FDI) in Ukrainian companies that operate critical infrastructure, extract metallic or non-metallic minerals, or are engaged in the development, production, modernization, repair, transportation, disposal, or trade of military and dual-use goods will be subject to screening.
The Cabinet of Ministers registered the relevant draft law No. 14062, On Screening of Foreign Direct Investments, in the Verkhovna Rada on September 22.
According to the text, published on the parliament's website Tuesday, responsibility for FDI screening and maintaining foreign investor registries will be vested in a new central executive authority. A collegial advisory body—the Commission on Assessing the Impact of FDI—will be established under it, with members including representatives from the Security Service (SBU), Foreign Intelligence Service, and the Ministry of Foreign Affairs.
The bill sets a maximum 90-day timeframe for approving FDIs subject to screening.
The central authority will also be responsible for monitoring foreign investor data, ensuring compliance with conditions, engaging in international cooperation, and publishing aggregated annual data on the law's application by June 30 each year.
The FDI Impact Assessment Commission will review investor documents to determine grounds for screening, prepare approvals or denials, and issue findings on risks tied to changes in an investor's ownership structure.
The draft law also specifies that screening will apply when a foreign investor acquires significant control over a screening-subject entity, including purchase of a 25% or 50% stake, or acquisition of assets whose value exceeds 10% of the entity's balance sheet assets.