By its Resolution No. 296 dated April 11, 2012 the Cabinet of Ministers of Ukraine approved the Procedure for concluding agreements on joint activities, commission agreements, agency or property management agreements by state enterprises, institutions and organizations as well as by business companies with the state share exceeding 50%.

The approved procedure retains the provision fixed in the Directive of the Cabinet of Ministers of Ukraine No. 703- р as of May 7, 2008 stipulating that the said agreements may be concluded only after a special decision, which shall be passed by the Cabinet of Ministers of Ukraine.

The procedure for concluding agreements is as follows: a business entity intending to conclude an agreement shall file an application for the approval of agreement conclusion along with a set of documents (including the mutually agreed draft agreement, copies of articles of association, information about the business entity as well as information about the prospective contracting party, rationale, business plan for the agreement execution) to the central executive authority it is subordinated to.

The governing body in coordination with the Ministry of Economic Development and Trade, Ministry of Finance, State Property Fund and Ministry of Justice shall prepare a draft decision of the Cabinet of Ministers of Ukraine within a month. If the Cabinet of Ministers passes the appropriate decision, the agreement may be concluded.

In fact, the Resolution only clarifies in what way business entities should act to obtain authorization from the Cabinet of Ministers of Ukraine (whom to address and with what set of documents) and with what bodies the decision should be coordinated. Unfortunately, the procedure is not prescribed in detail. Thus, it is not even mentioned, in which cases the Cabinet of Ministers may not allow entering into agreement. It is also not clear within what period the Cabinet of Ministers shall pass a decision (the period is set for preparing the draft decision only).

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