#06 June 2016

In focus – Asset Recovery

With the permanent crisis in the economy and banking sector in particular, fraudulent behavior has become, unfortunately, common practice in our country. It can be seen at both state and corporate levels.

The problem is widely discussed at governmental level. The algorithm of the necessary actions is known and open to the public, methods and gaps in actions are revealed and criticized, barriers in the bureaucratic system of state authorities and legislation are identified. Thus, recent reports suggest that no assets belonging to former state officials under Western sanctions have been recovered...

With the support of Tax Regulation

A commission agreement is quite a popular agency agreement, which is often used by taxpayers in their foreign economic activity. Given the fact that for the purposes of income tax assessment foreign economic transactions on selling products through non-residents agents are deemed controlled transactions, many questions arise as to various aspects of transfer price formation within such business transactions...

Expert Opinion

Poor as a Church Mouse, but Still Very Rich

Vsevolod M. Volkov

It has become normal practice for people who are very active in business to establish some sort of arrangements not to publicize their wealth. People may be driven by different reasons. Some want more security and less transparency to their business; some want to create a squirrel fund in case business or personal relationships go wrong, others want to hide assets from creditors to prevent debt recovery. Business, however, is not the only one pursuing some level of secrecy corrupt government officials and criminals have the same target. In the latter case, it is in the public interest not to let this happen...

In Re

Investment Arbitration Effective Instrument to Recover Assets Lost in Crimean Peninsula

Yuriy O. Dobosh

One of the most complicated issues in terms of asset recovery is the situation which arose when the self-proclaimed Crimean authorities decided to carry out massive nationalization and illegally expropriated state-owned and private-owned businesses in the peninsula...

Cross-Border Aircraft Foreclosure: Viable Mechanisms and Associated Risks

Kateryna Y. Safronenko

Cross-border financing of the aviation sector is a crucial aspect of industry development. Bank loans for purchase of an aircraft, in practice, are pledged by a mortgage over the aircraft. Herewith, security of a debt by specific collateral might help a creditor to protect its interests as well as minimize potential risks within the process of asset foreclosure. Recent economic destabilization in Ukraine affects proper fulfilment of obligations by local debtors vis-à-vis foreign creditors, resulted in numerous requests with regard to validity of a collateral as well as aircraft repossession process...



Sayenko Kharenko advised major foreign banks

Sayenko Kharenko and AVELLUM supported final restructuring of sovereign-guaranteed debt of Ukravtodor

Redcliffe Partners advised lenders on loan restructuring by Ukrlandfarming

Sayenko Kharenko advised Bluebird Merchant Ventures

Redcliffe Partners supported EBRD in financing Ukraines agricultural sector

Asters counseled IFC on financing to Integrated Agrosystems

Law Digest

NBU renewed classifier of foreign currencies and banking metals

Liberalization of anti-crisis measures

Protection of investors rights


Simplification of export of services

State registration of foreign investments cancellation

Changes to the Criminal Procedure Code

Ukrainian aircraft industry may be exempted from tax


Mergers & Aquisitions

The European Commission approved merger of AB InBev with SABMiller

Nissan buys big stake in fellow car-maker Mitsubishi for USD 2.2 billion

International Monitoring

Britain will oblige foreign companies to disclose their owners

The British government will oblige foreign companies that have property in the country to disclose their final owners.

Legal business

US law firm employed a lawyer with artificial intelligence

European Integration

Ukraine joined EU COSME program

Antimonopoly Committee of Ukraine

Coca-Cola Company permitted to sell fermented drinks maker Yarilo

AMCU allows acquisition of 50% stake in Eurobank


Ukraine joined Trans-Caspian transport route


Chinese invested USD 75 million in Mykolayiv seaport

Chamber News

Focus on intellectual property rights

World Intellectual Property Day, celebrated globally on 26 April, was a great occasion to once again highlight and learn about the important the role that intellectual property rights (IPR) play in developing business...

UBA News

UBA News

E-signature & Cryptography

The Ukrainian Bar Association organized a meeting within the How does IT work? project on 18 May to discuss the principles of electronic and digital signatures and cryptography.

The meeting was opened by Anatoly Tarasenko, lawyer, NGO E-Democracy. In his opinion, the introduction of e-law faces several problems. One of them is the attitude of the older generation, which is afraid and does not understand innovations...


Sources of Information for Transfer Pricing

Sources of information are a key pillar of transfer pricing (TP) legislation taking into account the fact that relevant data strongly affects the conclusion on comparability and, hence, choice of applicable TP method. Current TP legislation requires strong comparability of transactions to consider not only basic issues like subject matter, delivery terms and payment terms but also second-tier issues like market conditions, business strategy of the counterparties and so on that as a matter of practice strongly prevent taxpayers from conclusion about comparability...

Cover Story

Proactive Thinking

Sophisticated financial vehicles create opportunities for assets withdrawal. This is a global trend, and in our country it is also pushed with a clear political agenda. We often hear from the media about the freezing of assets, confiscation, legal assistance. But the real Ukrainian case studies are still pending. Commercial tracing and recovery is a formidable task that requires good knowledge, a multi-professional team, cross-border capabilities, and proactive thinking.

Obviously, the situation is prompting a new service. Our recent brainstorming session at Spenser & Kaufmann with Tetyana Ivanovych, Nickolas Likhachov and Valentyn Zagariya poured some light on the state of play.


X Legal Awards 2016

Following a long-standing tradition, every May the Ukrainian legal society gathers to celebrate the Legal Awards Ceremony held by Yuridicheslaya Practika Publishing. This timethe tenth annual legal ceremony was held on 24 May 2016 at the InterContinental Kyiv Hotel.

According to the program, law firms and individuals competed in 37 nominations...

Warsaw Conversation

Evaluation of reforms in Ukraine by Polish investors, trends and prospects of bilateral cooperation, potential of separate sectors of the national economy and future investment decisions were discussed at the IV International Forum Ukrainian Business Day in Poland, which took place in Warsaw on 12 May 2016.

While moderating the first panel discussion, Yaroslav Romanchuk, President of the Association of Ukrainian Business in Poland and managing partner of ILC EUCON, noted that one of objectives of such a meeting is summing up results of economic cooperation between the two countries...


Legislative Update

The wave of legislative initiatives in the Ukrainian Parliament and other government authorities covers various fields of business activity and, to a large extent, touches upon the overall economic framework and investment attractiveness of the country. This month experts comment on corporate governance and protection of investors rights, currency restrictions, elimination of state investment registration, debt restructuring, proposed changes to criminal law.

Yuriy Katser, Iaroslav Cheker

On 19 April 2016, the National Bank of Ukraine adopted Resolution No. 269 On Amendments to the Classifier of Foreign Currencies and Banking Metals (the Resolution). The Resolution updated the Classifier of Foreign Currencies and Banking Metals (the Classifier) for the first time in 10 years. The Resolution came into effect as of 4 May 2016


Nataliia Murashko,

Despite the majority of jurisdictions view independent directors as a powerful tool of investors rights protection, efficiency of the mechanism, suggested by Act of Ukraine No. 289-VIII, is not univocal

Igor Lozenko,

Since the mandatory 75% foreign currency sale requirement for proceeds transferred into Ukraine as foreign investments has been cancelled, this should be a positive move for counterparties of foreign investors and companies enjoying FX equity injections from their foreign parents who will now be able to retain received hard currency funds on their accounts and convert to Hryvnias when need be

Serhiy Mykhaylyk

If adopted Draft Act No. 2764 will regulate the debt to equity conversion for limited liability companies in Ukraine. The legislative initiative is aimed at solving the existing uncertainty with respect to use of this debt restructuring instrument by LLCs envisaged by Article 144 (2) of the Civil Code of Ukraine. The Ukrainian borrowers and their creditors will be entitled to apply the economically efficient mechanism widely used in the European countries that enables improving the position of the company that is experiencing financial hardship

Sergiy Gryshko

Explanatory note to the Draft No. 2763 declares that the Bill is aimed at enhancing encouragement of attracting investment by simplifying procedures for receiving such investments. In particular, Draft No. 2763 purports to abolish state registration of foreign investment. The abolition of post-Soviet old-fashioned registration of investments is indeed long overdue. This registration meant additional, if useless, paperwork for foreign investors wishing to open new ventures in Ukraine or buy ongoing concerns without adding any additional comfort to investors or safeguards to the State

Vadym Vershniak

After Savchenkos Law came into force, according to which one day in the detention cell counts for two days of imprisonment, in case of such a punishment, many persons were actually released; and among these persons there are many people convicted for a serious crime and particularly serious violent crimes. For those who still continue serving a sentence, the imprisonment period was considerably shortened

Igor Reutov

The Draft of proposed Act of Parliament No. 3719 On Amending the Code of Criminal Procedure with Regard to Certain Issues Of Investigative Actions With Aim of Ensuring Additional Guarantees Of Legality During Their Conduct is a long-awaited piece of legislation. It is intended to reduce the risk of abuse of power by investigative agencies when they conduct search and carry out warrants of seizure. On the other hand, the amendment, if enacted, will enhance the rights of persons being searched and persons whose property is being seized

Dr. Svitlana Kheda

The supporters of mediation welcomed a recent decision by the parliamentary Committee on Legal Policy and Justice to recommend Verkhovna Rada passing in principal in the first reading the Draft Act On Mediation No. 3665 authored by MP Olena Shkrum et al. This is an important step forward to the legal regulation of mediation in Ukraine. The Act on Mediation would declare that the state endorses mediation as an effective/efficient alternative to corrupt Ukrainian courts. Mediation would be formally recognized in settling various disputes (e.g. commercial, labor, family, etc.), including those with foreigners. It could be used not only before filing a lawsuit but also during/after a court proceeding, and within a ruling enforcement procedure

Olha Demianiuk

On 5 May 2016 the Ministry of Health of Ukraine (the MOH) published for public discussion a draft regulation of the Cabinet of Ministers of Ukraine on Approving the Concept of the Reform of the Financing of the Healthcare System in Ukraine



US court prohibited UMH Group from using Forbes brand

Apple lost its rights to iPhone trademark in China

Court allowed search of YouTube offices in US

Kiev Court arrested accounts of Fozzy-Food

Lawyers News

KPMG Ukraine contributed to International Compliance book

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