RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/UKR/75
17 August 1999
(99-3468)
Working Party on the
Accession of UkraineOriginal:  English
ACCESSION OF UKRAINE
Memorandum on Government Procurement Legislation.
The following additional information has been received from the Governmental Commission
on Ukraine’s Accession to WTO.
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1. Current Legislation and Situation
Fulfilling the state’s needs for goods, works, and services is accomplished in Ukraine by the
procurement system. The basic normative-legal acts defining the overall legal and economic
foundations of th е system are the Law of Ukraine “On the Supply of Products for the State Needs”,
No.493/95, of 22 December 1995, enacted by the Supreme Rada of Ukraine, and the Cabinet ofMinisters of Ukraine Resolution “On the Procedures for the Formulation and Placing of State Orders
for the Supply of Production for State Purposes  and Review of their Implementation”, No.266, of
29 February 1996.
In order to align current tender procedures in  government procurement with those stipulated
by the World Trade Organization the Cabinet of Ministers of Ukraine has passed several resolutions:
Resolution No.694 “On Organizing and Holding International Tenders in the Field of  GovernmentProcurement Concerning the Import of Goods (Works, Services) in Ukraine” dated 28 June 1997;
Resolution No.1058 “On the Creation of the Single Sy stem of Purchase of Goods (works, services) at
the Expense of the State Budget and Foreign Investments Involved from the Warranty of the Cabinet
of Ministers of Ukraine” dated 24 September 1997; and Resolution No.1369 “On Holding Tenders in
Construction” dated 1 September 1998.
The first of the abovementioned resolutions defines the general procedures for government
procurement by central and local executive government bodies, business entities, institutions, and
organizations, regardless of the form of ownershi p, that procure products by using state budget funds
or foreign credits obtained under Cabinet of Ministers guarantees. The second resolution was adoptedin order to regulate the procurement of goods, works, and services valued at over 10,000 hryvnias, by
establishing a single procedure for procurement and control in the use of the budget funds, applicable
to all state entities. The third resolution was developed in order to take into account the specificities of
subcontracting tenders for works and services in the construction sector.
Practical experience of tender invitations during 1997–1998 has shown that certain principal
provisions of these normative acts need to be fixed at the legislative level.WT/ACC/UKR/75
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2. Draft Legislation
Given the importance of resolving the issue of Ukraine joining the WTO, as well as
increasing the effectiveness of applying budget fu nds expended for government procurement, the
Ministry of Economics, together with other relevant ministries and agencies, has prepared a draft Lawof Ukraine “On the Procurement of Goods, Works, and Services for State Needs”, based on the
UNCITRAL Model Law adopted by the UN Commissi on on International Trade Law and on similar
legal acts adopted by the EU and by post-socialist countries. The draft law emphasizes the creation of
a wide-ranging competitive environment in the government procurement market, ensuring
transparency and fairness of procedures, and avoiding discriminatory actions with regard to suppliers
(providers).
The President issued a Decree “On the Purcha se of Goods, Works and Services for State
Needs”, No.595/99, of 1 June 1999, which includes the text of the draft prepared by the Cabinet of
Ministers. On 16 March 1999, the Cabinet of Ministers also submitted this draft law to the Supreme
Rada where it has passed the first reading. An English translation of the above Presidential decree is
attached hereto.
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