Ukraine Establishes an Interagency FDI Screening Commission

Today, the Ukrainian Government has adopted a resolution establishing an Interagency Commission on the Screening of Foreign Direct Investment ("Commission). This decision of the Government aims to introduce a mechanism for assessing the impact of foreign direct investment ("FDI") on Ukraine’s national security under the conditions of martial law.

According to Oleksii Sobolev, Minister of Economy, Environment and Agriculture of Ukraine, the launch of an FDI screening mechanism will enable Ukraine to timely identify potential national security risks and adopt balanced decisions on attracting capital into strategic sectors of the Ukrainian economy, thereby fostering a secure and predictable investment environment.

The Commission will:

submit proposals and recommendations to the Government;
ensure transparency in the assessment and analysis of FDIs; and
mitigate risks related to unilateral decision-making or lobbying of narrow sectoral interests.

The resolution also approves the Regulation governing the Commission and its composition. The Commission will be co-chaired by:

the Minister of Economy, Environment and Agriculture of Ukraine and
the First Deputy Secretary of the Defence Council of Ukraine.

The establishment of the Commission is expected to strengthen inter-agency coordination and ensure a coherent assessment of the national security implications of foreign direct investment in Ukraine.

We will keep you posted on further developments related to Ukraine’s FDI screening framework.

For further information, please contact Asters' Partner Igor Svechkar, Counsel Sergiy Glushchenko and Senior Associate Anastasiia Panchak.