#10 October 2016

In focus – International Arbitration

For many years the absence of trust and favorable legislative background in many new democracies, including our own country, resulted in an outflow of cases to more developed arbitration jurisdictions. Naturally, many countries develop and promote their arbitration centers seeking to become attractive arbitration jurisdictions. In addition to obvious benefits for the arbitration communities, this is an essential step for improving investment confidence and sustainability...

With the support of Tax Regulation

The fight against offshores intensified around the world after the 2008 financial crisis. The main focus was on combating tax evasion, exchange of tax and financial information, transparency and the disclosure of beneficiaries.

According to Yaroslav Romanchuk, managing partner of International Legal Center EUCON, the major initiatives on de-offshorization at international community level are measures for information exchange Convention on Mutual Administrative Assistance in Tax Matters and BEPS (Base Erosion and Profit Shifting), which many experts called the most fundamental changes in international tax rules. This plan was approved by G20 in the autumn of 2015, with 4 points of the plan (out of a total of 15) dedicated to transfer pricing. To date 103 states, including Ukraine, have joined the Convention. However, exchange mechanisms provide for the existence of bilateral or multilateral agreements. At the moment, a multilateral agreement on automatic exchange between competent authorities has been developed and according to the latest information it has been signed by 83 jurisdictions. Ukraine is only planning to sign it...

Expert Opinion

Ukraine Reforms its Arbitration-Related Procedural Legislation

Olena S. Prepelynska

Although Ukraines law on international arbitration is based on the UNCITRAL Model Law (1985) and Ukraine is a party to all major international treaties in the field of arbitration, its procedural legislation for arbitration-related matters has always been incomplete. Lack of procedural rules for support of international arbitration made it almost impossible in practice to obtain any judicial assistance from local Ukrainian courts, including interim measures in aid of arbitration or gathering the evidence for arbitral proceedings. The existing rules regarding enforcement of arbitration agreements are contradictory and the respective court practice is not always pro-arbitration...

In Re

Disclosure in International Arbitration

Pavlo I. Byelusov, Yuliia V. Volkova

Disclosure as means of fact-finding is essential in arbitration since it directly influences a tribunals decision and helps the parties to discover each others documents relating to a dispute. Procedures for the disclosure of evidentiary materials also play an essential role in international arbitration, as fact-finding is one of the key functions of an arbitral tribunal...

Arbitration Clause in Privatization Agreements

Markian M. Malskyy, Oksna Y. Karel

A foreign investor is historically considered particularly vulnerable in privatization matters, since both the privatization object and the investor itself are subject to domestic jurisdiction of the state where the privatization took place. This is because an investor is typically concerned by issues of protection of rights and interests, possible discriminatory actions, potential challenge of privatization deal and transnational enforcement process, etc.



Vasil Kisil & Partners advised Epicenter

AVELLUM advised Altran

Sayenko Kharenko advised EBRD

Horizon Capital acquired majority stake in Datagroup

Aequo advised Dragon Capital on Pyramid Shopping Mall acquisition

Asters advised Quinn Emanuel Urquhart & Sullivan


UK residents brought claim against MasterCard

Ukraine filed lawsuit against Russia

Japan fined Apple

Court finds end user responsible for copyright infringement via free Wi-Fi

Pavlenko Legal Group defended interests of insurance company

EY former partners charged with violating auditor rules

Law Digest

New procedure for state registration of rights to immovable property

State registrars now obliged to check court decisions in registry first

Principle of zero-liability introduced

NBU legalized BankID system


New functions for the National Bank of Ukraine

Participation of shareholders in joint stock company management

On the High Council of Justice Draft Act

Cancellation of company seals for business

Chamber News

Members of the American Chamber of Commerce in Ukraine met corruption-buster Ruslan Radetsky

UBA News

UBA Committee on International Law

UBA V Judicial Forum


Mergers & Aquisitions

Volkswagen acquires stake in Navistar Truck Manufacturer

Largest IT deal in history of Europe

Nordea and DNB merger

Bayer acquired Monsanto


Organization of railway-ferry transportation service through Ukraine and Georgia

Banking & Finance

Royal Bank of Scotland abandoning global operations

PSBC attracted more than USD 7 billion


Government-backed Draft Act on electricity market

Creation of independent regulator in energy and utility services

Money Laundering

Cabinet of Ministers established Council for combating money laundering

Case Law

Update on JKX vs. Ukraine Saga

Yaroslav A. Ptrov

TheUkrainian saga on the enforcement of the SCC emergency arbitrators award continues, as the case is pending the second round of cassation review.

Arbitration proceedings were initiated by Dutch and English investors Oil&Gas PLC and Poltava Gas B.V. (JKX or Claimants) on 7 January 2015. The case concerns the alleged Ukraines failure to comply with its obligations under the Energy Charter Treaty, the UK-Ukraine BIT (1993), and the Netherlands-Ukraine BIT (1994). On 28 December 2014 Ukraine enacted the Act of Ukraine on Tax Reform Amendments to the Tax Code of Ukraine and Other Legislative Acts. This Act provides for an increase in royalty payments on gas production from the previously applicable 28% to 55%. According to JKX, these provisions conflict with Ukraines obligations to ensure fair and equitable treatment of investments. JKX claims it has suffered losses resulting from these violations and demands compensation of USD 270 million...

Cover Story

Forward-Thinking Mode

Ivan Mishchnko

The dispute resolution practice is a must have for every legal counsel in Ukraine. The new market players refined business strategies towards a delineated dispute front, making it their bread and butter. The recently adopted changes to the judicial system, client demand for flexible and reliable tools of legal protection, upcoming reform in the arbitration sector, mean this is obviously a perfect time to adjust their legal solutions as for time and finance efficiency, force marketing and introduce a forward-thinking vision. We addressed these and other questions to Ivan Mishchenko, managing partner of Trusted Advisors, a new ambitious team establishing its place on the dispute resolution landscape in Ukraine...


Shareholders in Insolvency of Companies: New International Project is Under Way

Oleksandr M. Biryukv

Insolvency law is a very complex combination of legal norms, both substantial and procedural. When a court administers a bankruptcy case it normally refers to various provisions of different spheres of legislation. Among those spheres company law in many situations plays a leading role in restructuring the business of a company in distress...

How To

What Business Needs to Know about Recognition of Foreign Judgments in Ukraine

Maryna V. Pavlnchyk

The rapid expansion in the globalization of both businesses and individuals has resulted in a situation in which the official verdicts of authorities belonging to one state frequently require practical implementation within another state. This increase in global relations has led to the increasing popularity of international arbitration as a means to settle commercial disputes of various kinds.

How does Ukraine handle this issue, and what exactly needs to be taken into account during the different stages of dispute or arbitration proceedings abroad, when the results of these proceedings are to be applied in Ukraine?


Washington Legal

The IBA Annual Conference is a traveling venue that is hosted in different cities around the world. Notably, each location entrusts the largest legal forum with its own spirit, topics and cultural offering. On 18-23 September more than 6,000 delegates came to the US capital, Washington DC, on the eve of the presidential elections and hot political debates.

With it being held in the heart of US politics, the conference program stood out for its unprecedented number of showcase sessions with Attorney General Loretta E Lynch,Ge- neral Colin L Powell,US Secretary of State (2001 2005), The Rt. Hon. Arlene Foster MLA, first Minister of Northern Ireland, Robert S Mueller, director of the Federal Bureau of Investigation (2001 2013) and others...


Legislative Update

The UJBL editorial team has monitored the current significant changes in legislation as well as new draft bills. Among the recently issued regulations for analysis are the Resolution of the National Bank of Ukraine that introduced zero liability principle for cardholders, governmental one that ordered notaries and other subjects of registration to verify court decisions on the possibility of counterfeiting before making registration procedures, and more. In october issue we`ve asked our experts to look deeper at the recent draft acts on assessment of environmental impact, creation of special register of persons who have lost their impeccable business reputation, shareholders participation in joint stock company management...

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