On 5 December 2017, the Ukrainian Parliament (Verkhovna Rada) adopted the Law that ratifies the Agreement for the Encouragement and Protection of Investment entered into between Ukraine and the OPEC Fund for International Development (the “OFID”).
The Agreement, signed on 26 May 2017, provides for a number of guarantees given by Ukraine to the OFID in respect to its investments, in particular:
- guarantee of protection against expropriation;
- most-favoured-nation treatment;
- guarantees concerning the free transfer of payments;
- tax carve-outs; and
- settlement of disputes between the OFID and Ukraine in respect to the investments by international arbitration.
By ratifying the Agreement, the Verkhovna Rada has made yet another step in a series of recent moves to secure growth in the inflow of capital. It is expected that such attempts will result in the increase of foreign direct investments in key industries of Ukraine’s economy.