Ukrainian parliament adopts law on oligarchs

The Verkhovna Rada has adopted Law No. 5599 "On the prevention of threats to national security associated with the excessive influence of persons who have significant economic or political weight in public life (oligarchs)."
Some 279 lawmakers voted for the document at a parliament meeting on Thursday, September 23, according to an Ukrinform correspondent.

The document provides for the introduction of amendments to a number of laws in order to create a register of persons who have significant economic or political weight in public life (oligarchs), determines the procedure for including such persons in the register and the consequences of such inclusion, and introduces the declaration by civil servants of contacts with persons included in the said register.

According to the law, an oligarch is an individual who simultaneously meets at least three of the following characteristics, in particular, participates in political life; has a significant influence on the media; is the ultimate beneficial owner of an economic entity who, after the date of entry into force of this law, is a subject of natural monopolies or holds a monopoly (dominant) position in the market in accordance with the law "On the protection of economic competition" and maintains or strengthens such position; the confirmed value of the assets of the person and business entities, the beneficiary of which such a person is, exceeds one million subsistence minimums established for able-bodied persons on January 1 of the respective year.

The value of assets is calculated collectively according to the size of assets of a person and business entities the beneficiary of which such a person is. When calculating the value of such assets, the assets owned by a person in the media are not taken into account.

The decision to recognize a person as an oligarch is made by the National Security and Defense Council on the basis of a motion from the Cabinet of Ministers, a member of the National Security and Defense Council, the National Bank, the Security Service, or the Antimonopoly Committee of Ukraine.

The NSDC decision to recognize a person as an oligarch serves as a basis for the inclusion of such a person in the register of persons who have significant economic or political weight in public life (oligarchs).

The law is expected to be in force for ten years.

MPs considered the bill article by article, applying the appropriate procedure to the document, in accordance with Article 119 of the Rules of Procedure of the Verkhovna Rada.

The bill on oligarchs was passed at first reading on July 1