Lisnichenko S. Financial and Legal Regulation of the foreign investments in Ukraine (according to the legistation of Ukraine and EU, the USA

The main thesis of this theoretical is relationships regulated by actual Ukrainian legislation between the state administrative bodies and foreign investors as well as the financial gounds and frameworks for the carrying on the entrepreneur's activities by the non residents in Ukraine.The dissertation includes a certain number of proposals on improvement of current legislation to the regulation of foreign investments in Ukraine. Under the actual conditions in Ukrainian national economy the problem of stimulating the foreign investments ranks a key positions in the legal refulations of non residental capital in this Republic. The central point of above mentioned issue is the financial-legal aspects of investment’s activities of foreign companies on Ukrainian capital markets. In this dissertation was analyzed the current development of Ukrainian legislation to this problem as was given a definition of the conception “foreign investment”. The special attention was given to the financial and legal regulat ion of so called portfollo investment in Ukraine and activities of non residents on Ukrainian stock markets becouse the main foreign capitals come to the new markets specially throw this way. Is was analized that Ukrainian stock market posses the same stock means as the western stok exchange: bills, shares, government bonds and so on. But the main mistake of legislator in this field was predomination of goverment bonds in the stock exchange and financing throw this way the budget deficit. This policy lead of to financial collapse in the last year. Another key issue of financial-legal regulation, that has been explored in this dissertation, is the taxation of foreign investors in Ukraine and the actual tax system of this Land. It was given also the scientific comparison with the similar tax systems of industrial countries. The main lack of taxation system of Ukraine, as it was indicated in this research, implies in the predominating of indirect taxes like VAT (Value added Tax). Such kind of situation causes t he withdrawal from circulation of assets of foreign investors as well as their Ukrainian contra parts. This makes their investment risky and uneconomic. Undre this pooint of virw there of view there has been done the analyze of modern ltgal forms of legalization of foreign companies in Ukraine and the actual legal field for their for their activities in this Land. Particulary were regarded such financial-legal tools as off shore zone and free economic zone and financial-industrial groups. The tax preference has been also the subject of this exploration (research). The insufficient results of govement’s policy directed to the privileges for the foreign investors brought to the immense budget loses. The main reason for such kind of phenomenon was and still remains the lack of understanding by the legislator the difference between business and investment’s activities of foreign comoanies in Ukraine. All kind of investment are business activity but not all business activities are the object for investmens. In the dissertation was made an emphasis on the necessarly of telling the difference between the common businessmen and investors. Special emphasis was laid on the questions concerning the banking systems of Ukraine. It was fitted that the modern bank systems is an essentail part of foreign investments regime. But in Ukraine falls short the necessury number of nigh liquid banks capable to credit the production sohere of national economy of Ukraine. Currency of Ukraine doesn’t fit the interests of attraction of foreign capitals in this Land. Firstly it apples to the actual order of opening of accounts in Ukrainian banks and procedure of negotating foreign credit by residents. Mainly concern this the lecensing practice of Ukrainian National Bank and financial authorities of Ukraine in this field. Tough interference of State into the free market processes brings to the steadily same result-outflow of capitals and substitution of the free market relationships throw administrative regulation. This makes the activities o f foreign banks very risky and non lucrative. A large number of non liquid bank in Ukraine take to the consequence the disperasion of financing coming in Ukraine and doesn’t permit to concentrate them on the demanded level. In this research has been made a conclusion about the necessity of increasing the authhorized capital of Ukrainian banks to the world standerds - 3 millions ECU as it was recommended by the Basil committee.