Amendments to the Authority of Local State Administrations Regarding the Designation of Enterprises as Critically Important

The Resolution introduces a new version of clause 4 of the Criteria.

Hereafter, the designation of critically important business entities shall be carried out by:

1. Central executive authorities and other state bodies whose jurisdiction covers the entire territory of Ukraine, with respect to enterprises engaged in activities within the national economy or a sector in which such authority formulates and/or implements state policy.
2. Regional, Kyiv City, and Sevastopol City State Administrations, with respect to:
   1. legal entities of communal ownership
   2. business entities located within the administrative-territorial unit concerned, provided that they operate in the following fields:
      • agriculture, forestry, or fisheries
      • mining and quarrying
      • manufacturing industries
      • supply of electricity, gas, steam, and conditioned air
      • water supply, sewerage, waste management
      • construction
      • wholesale and retail trade
      • repair of motor vehicles and motorcycles
      • transport, warehousing, postal and courier activities

In addition, under the said Government Resolution, state administrations are required, within one month from the date of entry into force of Resolution No. 847, to update the criteria used to determine enterprises that are of significance for meeting the needs of the territorial community.

Thus, Government Resolution No. 847 narrows the authority of local administrations. Henceforth, they may designate enterprises as critically important only under specific conditions—namely, where the entity is of communal ownership or a private enterprise operating in one of the specified sectors. Previously, state administrations could designate any enterprise located within their administrative-territorial area as critically important.

By Yuna Potomkina, Partner, and Anton Sintsov, Counsel, Asters