A number of regulations were recently issued to improve efficiencies in the area of outdoor advertising. With demand for outdoor advertising growing, cities overburdened with all kinds of billboards and outdoor advertising stands, and no adequate legislative framework in place, local authorities, as provided in the Advertising Law, must address the boom in outdoor advertising on their own.

In particular, municipal authorities in Kiev are determined to strengthen controls over outdoor advertising. To this end, the Kiev City State Administration has issued a new regulation governing procedures for the placement of outdoor advertising, and has vested relevant powers in a recently established specialized agency. The regulation is intended to:

  • establish requirements on the placement of outdoor advertisements;

  • implement a 'one-window' approach to obtaining authorizations and permits for the placement of outdoor advertising (although several other authorities may have to be consulted in certain cases);

  • ensure that requests to authorize the placement of outdoor advertising are processed properly and within the timeframe prescribed;

  • significantly reduce red tape;

  • ensure compliance with the city planning regulations;

  • increase revenues from outdoor advertising to the local budget; and

  • regulate other outdoor advertising-related matters.

As Ukraine's outdoor advertising market is in the initial stages of its development, its regulation has been intentionally left to the discretion of local authorities. Outdoor advertising in Ukraine is characterized by the predominance of obsolete, space-consuming and architecturally unsympathetic advertising media. Modern advertising media (eg, electronic displays, wallscapes and scrollers) are installed mostly in downtown Kiev.

As determined by the regulation, the city administration has divided the city into specific advertising zones, and has simplified the procurement of authorizations and permits to the maximum extent possible. The zoning is based on various requirements, as the placement of outdoor advertising and the relevant fees vary depending on the type and location of advertisements, as well as on other factors.

The outdoor advertising market in Ukraine demands a major legislative overhaul both at national and at local level. The development of an urgently needed legislative and regulatory framework is required to meet the needs of both the general public and local business. To this end, a new draft Advertising Law was passed by the Parliament at the first reading in April 2003. The proposed draft is more comprehensive and covers the issue of outdoor advertising in greater detail than the currently effective Advertising Law. It also introduces a number of new requirements for the placement of outdoor advertisements. If adopted in the near future, the new law and the model rules to be approved by the Cabinet of Ministers of Ukraine, as prescribed by Article 16 of the law, will help bring order to and establish a nationwide regulatory framework for the rapidly growing outdoor advertising market.

For further information on this topic please contact Igor Svechkar or Dmytro Fedoruk at Shevchenko, Didkovskiy & Partners by telephone (+380 44 230 6000) or by fax (+380 44 230 6001) or by email ([email protected]).