Ukraine lifted restrictions on reinsurance transactions with non-residents outside WTO
Ukrainian Government approved a new bill on amending the insurance law which simplifies the reinsurance operations with non-residents, UNIAN reported.
According to the Chairman of the State Commission for Regulation of Financial Services, Victor SUSLOV, the major changes that are proposed to the existing law are to remove the restrictions on reinsurance transactions with countries that are not members in the WTO. He explained that the most important partners for Ukrainian companies are reinsurers from Russia, Kazakhstan and Belarus.
He also believes that the current legislation which allows only non-residents - WTO members - to conclude reinsurance transactions with local companies is discriminatory.
"This rule does not conform itself with the WTO principles because, in fact, it is a restriction in trading services and it has been introduced in Ukraine by mistake. It discriminates our major trading partners such as Russia and we propose to mitigate this rule", Victor SUSLOV said.
In addition, the bill proposes to abolish the rule stipulating that the Ukraine should have a ratified memorandum on information exchange with non-resident's country that is participating in the reinsurance operations. Also, the bill proposed to introduce a clear statement regarding the ban on reinsurance operations with non-residents from offshore zones.
These changes will facilitate the development of the insurance market, including reinsurance. Ukrainian insurance market was expecting these amendments for some time as well as partners from Russia, Kazakhstan and other former soviet countries that are working with local companies.
Comment this article 1 comment VR (Anonymous) (26.01.2010 21:23) Not exactly. This law has not been passed by the
Parliament yet. Still in the state of the draft.
