#01-02 January-February 2016

In focus – Banking & Finance

We live in a period when the macroeconomic situation is at its most difficult since 1996. The banking system serves as the circulatory system of the national economy. And all kinds of obstructions in its natural functioning lead to very sad consequences for the entire system.

With the support of Tax Regulation

Transfer pricing and representations of non-residents

A representation of foreign business is an institution or a person representing the interests of a foreign business entity in Ukraine, as for this it has duly accorded the appropriate mandate and acts in its interests and favor. Pursuant to the Tax Code, a representation of a non-resident is treated as equivalent to a taxpayer carrying out its activities irrespective of the non-resident. An issue appears frequently in this connection as to whether the transfer pricing norms are applicable for transactions which are implemented by representations with residents of Ukraine. Should the representations submit reports? Who shall be part of a controlled transaction Ч a non-resident or its permanent representation?..

Expert Opinion

Financial Restructuring

Olexander M. Droug, Olexander V. Olshansky

The dramatic economic situation in Ukraine has put many firms into financial trouble. During times of such hardship, bankruptcy and insolvency law faces a special test. The well-known goals of insolvency law are to help viable businesses survive and facilitate the removal from the market of those that are not viable. Unfortunately, the assessment provided in the 2016 Doing Business report is that the goal of saving a viable business is unlikely to be achieved in Ukraine. Although the On Restoring the Solvency of a Debtor or Recognising it Bankrupt Act of Ukraine (Ukrainian generally applicable Bankruptcy Act) was restated with effect from 2013, Ukraine is still ranked 141 out of 189 economies in the Resolving Insolvency indicator of the report. It seems further reform is necessary to rise to the challenges of this difficult time...

In Re

Purchasing a Ukrainian Bank: Obtaining Approval from the National Bank of Ukraine

Andrii V. Zharikov,
an associate with DLF attorneys-at-law

In 2015 Ukrainian legislation related to the acquisition of a significant shareholding in a bank was substantially amended. This was due to the harmonisation of Ukrainian legislation with EU legislation. Changes were, therefore, made to the laws of Ukraine as to the transparency of ownership structure, including the ultimate beneficiaries, of banks, increase in the liability of shareholders and related persons of the bank, etc. This article discusses the current procedure for obtaining approval from the National Bank of Ukraine on acquisition of a significant shareholding in a bank and provides practical comments in relation to some aspects of this procedure...

Arbitration of Banking & Finance Conflicts

Oleg M. Krainsky

Throughout the last few years arbitration practice has been marked by the introduction of an entirely new category of conflicts for consideration Ч financial conflicts. For a variety of reasons briefly discussed below banks, the traditional adherents of litigation, turned to find arbitration a preferable means for resolving their business disputes. This contribution seeks to examine, to what extent was the substantial law of international arbitration influenced by this development. It proceeds to compare the issues that a bankТs counsel is advised to pay attention to while drafting an arbitration agreement with the issues usually emphasised in general commercial practice...



Avellum Partners advised Raiffeisen Bank International AG and PJSC Raiffeisen Bank Aval

DLA Piper advised Bomond Group

Sayenko Kharenko advised Commerzbank

Avellum Partners advised on UkraineТs USD 15 billion sovereign debt restructuring

DLA Piper advised on re-opening of Dior boutique

Asters advised China Development Bank

Wolf Theiss advised Vienna Insurance Group

јvellum Partners advised city of Kiev on its Eurobonds Restructuring

Sayenko Kharenko Ч Ukrainian legal counsel to Infracapital

Integrites Ч legal advisor to VTB Bank


German court rejected claim by Poland regarding Nord Stream

Employer may check social networks of employees in certain cases

Court lifted an attachment of bank accounts of Neftegazdobycha

Louis Vuitton filed suit against sale of counterfeit goods via Taobao

Law Digest

Public Procurement

Quorum of general meetings of limited liability companies reduced

Changes in tax legislation


Abuse of monopoly by New Systems AM LLC

Gazprom case under review

Investigation of the electrical energy and steam coal markets


Extra Protection of Intellectual Property

Amendments to the Constitution of Ukraine


Export and credit agency



Resolution banning import of goods from Russia in effect now

Oil & Gas

Gazprom calls off tenders for construction of gas pipeline to Nord Stream 2

M & A

In-depth investigation into acquisition of Baker Hughes by Halliburton


Abandoning routine inspections†till June

Chamber News

Chamber Meeting on Overview of European Cybersecurity Implementation

Chamber Customs Committee Meeting

Chamber Banking & Financial Services Committee

Cover Story

Matter-of-course Function

The recent non-payment crisis is facilitating banks to find the proper solution for managing their bad debt portfolios. And legal strategy is pivotal for the performance of banks in these critical and very challenging times for the banking sector. We came armed with these questions for an interview with the partners of L.I. Group Ч Mykola Kovalchuk and Artur Megeria. Their matter-of-course dispute practice gave us a quite clear explanation of the situation on the ground.

Hot Issue

E-Commerce Law: An InsurerТs Dream Comes True?

Tatiana A. Daniltseva, Stanislav B. Karpov

The On E-Commerce Act of Ukraine aimed to ensure the legal procedure for conclusion of agreements remotely by means of digital telecommunication technologies entered into force on 30 September 2015.

Dynamically developing digital technologies dictate usage of new distribution channels for goods and services, including insurance policies. Therefore, the On E-Commerce Act was highly anticipated by insurance companies in Ukraine...

Global Legal Update

Investor-State Claims with Respect to the Acts of Judiciary

The acts of national courts become the subject matter of the investor-state arbitration in four of the most typical categories of claims depending on which international law standard is invoked:

Ч denial of justice claim;

Ч claim on breach by the judiciary of the fair and equitable treatment (FET);

Ч claim on breach by the judiciary of the effective means standard;

Ч claim on judicial expropriation...


Promotion and Development: Secrets on Air

At the end of 2015 the III International Forum for the Promotion of Legal Services held by Yuridicheskaya Practika Publishing brought together the legal market to reveal the secrets of promoting services during a turbulent and challenging period. Legal practitioners, marketing and BD executives, representatives of professional media and consultants from Ukraine and abroad came to exchange the latest developments in promotion and development, discuss the best ways of attracting clients, effective communication channels, reputation risks in business and share their forecasts for 2016...


Changes Abound

The end of 2015 saw new legislative changes and developments in various areas of business regulation. Thus, The UJBL editorial staff has enlisted the help of experts to comment upon some of them. Our latest digest includes, to a greater extent, innovations in the taxation system, among which are the unified social contribution,† personal income tax and simplified taxation regime, changes in the banking and financial sphere, regulations of† public procurement,† land allotment procedure and not only...

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