{"id":72,"date":"2010-01-17T21:59:00","date_gmt":"2010-01-17T21:59:00","guid":{"rendered":"https:\/\/baron.yakimaxim.site\/article-new-law-on-data-protection\/"},"modified":"2026-03-12T13:06:45","modified_gmt":"2026-03-12T13:06:45","slug":"article-new-law-on-data-protection","status":"publish","type":"post","link":"https:\/\/frishberg.com\/uk\/article-new-law-on-data-protection\/","title":{"rendered":"New Law on Data Protection"},"content":{"rendered":"

January 17, 2010\u00a0<\/span><\/p>\n

TO: Clients and Friends of the Firm\u00a0<\/span>\nFR: Scott E. Brown, Esq. Frishberg & Partners\u00a0<\/span>\nRE: <\/span>New Law on Data Protection in Ukraine<\/strong> <\/span>\nAfter years of paralysis, Ukrainian business-related legislation is undergoing major changes. For instance, a new tax code came into effect in the New Year, and we can already hear the protests\u00a0associated with the proposed new labor code. Meanwhile, completely undetected, a new law has\u00a0quietly entered into force on January 1, 2011, entitled the Law of Ukraine No. 2297-VI \u201cOn\u00a0Protection of Personal Data\u201d, dated June 1, 2010 (hereinafter the \u201cPDP Law\u201d).\u00a0<\/span><\/p>\n

The PDP Law is based on the framework EU Directive 95\/46\/EC on the protection of individuals\u00a0with regard to the processing of personal data and on the free movement of such data, but\u00a0provides a more detailed legislative base for data protection in Ukraine. The good news is that\u00a0by implementing the PDP Law, Ukraine is bringing its legislation into closer compliance with\u00a0European standards, perhaps with the eventual hope of European integration. However, the PDP\u00a0Law leaves open the usual questions of implementation and enforcement surrounding other\u00a0Ukrainian laws.\u00a0<\/span><\/p>\n

With the above background in mind, we will provide a brief overview of the data protection rules\u00a0in Ukraine. Similar to Directive 95\/46\/EC, the PDP Law applies to data processed both by\u00a0automated means and non-automated filing systems gathered by Ukrainian legal entities and\u00a0natural persons. Personal data is defined under the PDP Law as information about an individual\u00a0who may be specifically identified. The primary sources of information may be documents\u00a0issued to an individual, documents signed by an individual and information provided by an\u00a0individual about them.\u00a0<\/span><\/p>\n

The PDP Law does not apply to databases and personal data processed by natural persons for\u00a0non-professional personal or household needs, journalists for their official or professional duties, and professional creative specialists. Notably, Directive 95\/46\/EC does not refer to the latter two\u00a0categories.\u00a0<\/span><\/p>\n

Specifically, the PDP Law applies to legal entities or natural persons, who by law or at the\u00a0consent of a data subject are granted the right to process personal data and who confirm the\u00a0purpose for processing personal data within their databases. These are referred to as \u201cowners\u201d or\u00a0\u201ccontrollers\u201d of personal databases, the latter being those companies or persons who are\u00a0contracted to process an owner\u2019s database. The law specifically applies to licensed doctors,\u00a0lawyers and notaries. While the PDP Law does not explicitly state so, it could also be applied to\u00a0such institutions as banks, insurance companies, employment agencies, law firms, discount card\u00a0systems and other businesses that collect, register, accumulate, store, adapt, amend, use,\u00a0distribute, transfer, sell or destroy personal data of Ukrainian citizens.\u00a0<\/span><\/p>\n

The fundamental principle applicable to personal data processing under the PDP Law is that all\u00a0steps in data collection, storage and processing, must have the consent of the data subject. This\u00a0is not a novelty in Ukraine, as the Law of Ukraine No. 2657 \u201cOn Information\u201d, dated October 2,\u00a01992, required the consent of any individual before his\/her information could be collected and\u00a0processed in Ukraine and\/or abroad. However, the PDP Law expands the consent requirement to\u00a0include consent to the volume, purpose, content and amendment to personal data. Pursuant to\u00a0the PDP Law, any data processed must be collected for a specific, lawful purpose and must be\u00a0precise, accurate and, where necessary, kept up-to-date. Note that there is no mention of\u00a0marketing purposes anywhere in its text.\u00a0<\/span><\/p>\n

As a narrow exception, the processing of personal data in Ukraine may be effectuated without\u00a0consent only in the interests of national security, human rights, protection of the individual in\u00a0question\u2019s vital interests (until such time as consent may be given) and \u201ceconomic welfare\u201d. The\u00a0PDP Law does not further elaborate on the definition of \u201ceconomic welfare,\u201d whereas Directive\u00a095\/46\/EC is only a bit more specific in stating \u201cimportant economic or financial interests of a\u00a0Member State or of the European Union\u201d.\u00a0<\/span><\/p>\n

The PDP Law does not permit the processing of personal data regarding race or ethnicity,\u00a0political, religious or ideological conviction, membership in a political party and professional unions or health or sex life. It is interesting to note that while Directive 95\/46\/EC does not\u00a0mention \u201cmembership in a political party\u201d, Ukraine (which is notorious for having many\u00a0politicians who double as businessmen or oligarchs) has specifically restricted the storage and\u00a0processing of data that reveals any political party affiliation. The aforementioned restrictions do\u00a0not apply in cases when such personal data is processed upon the unambiguous consent of the\u00a0data subject or when it is necessary to process personal data to exercise rights and perform\u00a0obligations in labor relations according to law.\u00a0<\/span><\/p>\n

Importantly, under the PDP Law, all data subjects enjoy certain integral and inviolable rights,\u00a0such as the rights to (i) know the location of all databases containing their personal data, (ii) the\u00a0receipt of full information about the owner or controller of their personal data, (iii) free of charge\u00a0access to their personal data, (iv) demand changes, restriction or destruction of personal data, (v)\u00a0object, on legitimate grounds, to the processing of their personal data by state bodies, etc. Data\u00a0subjects also have the right to protection of their personal data by the public authority\u00a0responsible for data protection issues, specifically with respect to any damages incurred from\u00a0unlawful disclosure and the provision of false personal data to third parties, including\u00a0information which can damage an individual\u2019s business reputation. Data subjects must be\u00a0notified in writing of all of their rights connected to their personal data held in any database.\u00a0<\/span><\/p>\n

The PDP Law requires state registration of all databases containing personal data. For this\u00a0purpose, the state personal data protection body will maintain a state register of personal\u00a0databases if and when the Cabinet of Ministers approves the said state body\u2019s regulations. As of\u00a0today, the Ukrainian government has yet to create the executive body charged with data\u00a0protection issues.\u00a0<\/span><\/p>\n

Generally, the registration procedure will entail the submission by the database owner of an\u00a0application containing information about the owner, the name and location of the database, the\u00a0purpose for processing personal data in the database, the controller(s), if any, of the database,\u00a0and confirmation of all personal data protection measures provided by law. If all registration\u00a0documents are in order, the owner of the database will receive a certificate of registration within\u00a0ten working days.<\/span><\/p>\n

While an individual\u2019s access to his or her personal data is free of charge, third parties may access\u00a0personal data only with the consent of the data subject and payment of the owner\u2019s fees (set by\u00a0the Cabinet of Ministers) for issuing a data subject\u2019s personal information. The owner\u2019s or\u00a0controller\u2019s employees are obligated to use or disclose personal data only within their official\u00a0capacity, and this obligation remains with such employees even after they have left their official\u00a0position. Of course, the data subjects must be notified regarding the transfer of their personal\u00a0data to third parties if their consent was subject to such condition.<\/span><\/p>\n

Personal data may also be transferred to foreign personal data processors on the condition that\u00a0their countries have a sufficient level of data protection, presumably comparable to Directive\u00a095\/46\/EC, the relevant permit, and the recipient uses the personal data for the same purposes for\u00a0which it was collected. Naturally, this provision brings up a number of difficult issues, including\u00a0but not limited to: who issues the said permit and when? How will the Ukrainian authorities\u00a0verify whether countries other than EU Member States have the required data protection rules?\u00a0How can the issue of the collection purpose be controlled or verified?\u00a0<\/span><\/p>\n

Overall, the Ukrainian PDP Law covers all of the issues required by Directive 95\/46\/EC as well\u00a0as issues more relevant to Ukrainian society, such as state use, business reputation and labor\u00a0protection. While the time is moving quickly toward the January 1st effective date, it is highly\u00a0doubtful that the Ukrainian government will be able to resolve some of the open-ended issues\u00a0left by the PDP Law. Alas, the Ukrainian government has not yet created the relevant public\u00a0authority responsible for monitoring personal data protection issues, it has not yet set up the\u00a0electronic database of registered owners and controllers of personal data, and it has not yet\u00a0issued the model procedure for processing personal data, including personal data deemed\u00a0banking secrets, as required by the PDP Law. With the tax and labor codes in the forefront of\u00a0the battleground, it seems that these issues may remain open for quite some time despite the\u00a0existence of the PDP Law.<\/span><\/p>\n\n

\n
Also read on mondaq<\/a><\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

January 17, 2010\u00a0 TO: Clients and Friends of the Firm\u00a0 FR: Scott E. Brown, Esq. Frishberg & Partners\u00a0 RE: New Law on Data Protection in Ukraine After years of paralysis, Ukrainian business-related legislation is undergoing major changes. For instance, a new tax code came into effect in the New Year, and we can already hear…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[65,116,72],"tags":[],"class_list":["post-72","post","type-post","status-publish","format-standard","hentry","category-legal-analysis","category-corporate-and-m-and-a","category-elena-avramenko"],"yoast_head":"\nNew Law on Data Protection - Frishberg & Partners\u200b<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/frishberg.com\/uk\/article-new-law-on-data-protection\/\" \/>\n<meta property=\"og:locale\" content=\"uk_UA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New Law on Data Protection - Frishberg & Partners\u200b\" \/>\n<meta property=\"og:description\" content=\"January 17, 2010\u00a0 TO: Clients and Friends of the Firm\u00a0 FR: Scott E. 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