#03 March 2013

In focus – Energy & Natural Resources

Having one of the most unfavorable state contracts for gas supply with Russian Gazprom in modern Ukrainian history, the Ukrainian economy has no other choice than to start functioning in retrenchment mode

Expert Opinion

The Peculiarities of Legal Regulation of Production Sharing Agreements

Alexey A. Kot, Ivan G. Zievakov

One of the few industries in Ukraine where remarkable changes in the activity of foreign investors were observed in 2012 is subsoil use, particularly in the production of hydrocarbons in Ukraine and the sea shelf. In general, Ukrainian legislation and established practice make it possible to determine three ways in which a foreign investor can conduct a geological survey and mining operation activities in Ukraine...

In Re

Production Sharing Agreements as the Most Efficient Legal Regime for Subsoil Use in Ukraine

Armen G. Khachaturyan, Tamara V. Lukanina, Yaroslav A. Petrov

In 2012 the Ukrainian Government held 3 tenders on execution of production sharing agreements (the PSA) for hydrocarbons to be recovered at 2 onshore and 1 offshore blocks. As a result of these tenders, Shell won the tender for the Yuzivska block (Eastern Ukraine), Chevron for the Oleska block (Western Ukraine) and the consortium consisting of ExxonMobil, Shell, OMV and PJSC NAK Nadra Ukrayny for the offshore Skifska block (the Black Sea). On 24 January 2013 the PSA regarding the Yuzivska block between Ukraine, Shell Exploration and Production Ukraine Investments (IV) B.V. and Nadra Yuzivska LLC was executed in Davos

New Regulations on the Use of Renewable Energy in Ukraine

Dr. Oleksiy O. Feliv, LL.M.

The renewable energy market in Ukraine has been very active lately both due to high feed-in tariffs (so-called Green Tariff) and political desire to diversify the use of energy resources and its dependence on oil and gas. On 20 November 2012 the Ukrainian Parliament carried out the first big review of the Green Tariff provisions adopted in 2009 and enacted some important legislative changes. As the title of the new law suggests, the changes are intended to stimulate production of electric energy from renewable sources. Below we would like to give a short overview and some critical analysis of the new provisions

The Impact of Tax and Legal Incentives on Solar Energy and Wind Projects in Ukraine

Oksana I. Olekhova, Olga I. Lubiv

Global processes in the world, as well as growth of world industrial production, are leading to a significant increase in energy consumption and, as a result, causing significant damage to the environment. At the moment it seems that environmental problems are the most important to the world community and give a stimulus to the development of renewable or alternative sources of energy

Due Diligence of Renewable Energy Projects: be Ready to Buy Half-Ready

Oleg A. Klymchuk

The Ukrainian renewable energy market is still at an early stage of development if compared to the countries of the European Union. However, the Green Tariff, granted for production of renewable energy has led to significant development of this sector. While first renewable power projects have been started, more and more investors realize to benefits of investments to this fast-growing industry sector. Now there is a growing trend for investors to pay attention to the secondary market, i.e. to those renewable projects, which are under development or shovel ready

Challenging Alternative Legal Regulation of Biogas Production

Kateryna A. Nastechko

Global concern about the environment has influenced the development of alternative sources in the last few years. Biogas technologies are complying with the principle of stable development and enabling the use of waste to produce gas or energy, fertilizers, etc. Besides, biogas could be used in cars, which dont need essential rebuilding. Biogas increased to the quality of natural gas (biomethane) can be supplied to the general gas-distributing network, which is a good way to transport biogas for consumers and energy accumulation

Hot Issue

The LNG Terminal in Ukraine: Legal Obstacles on the Path to Implementation of the National Investment Project

Oleg O. Milchenko

The industry of liquefied natural gas (LNG) trading has been growing fast for the last few years. LNG may be a real alternative to conventional methods of natural resources supply as it gives an opportunity to select among suppliers of the gas. Moreover, it may be an effective tool for countries where geography does not allow locating pipelines or their construction will be cost-ineffective. Thus, for instance, island-based Japan became a leader in developing LNG facilities with its more than 25 LNG import terminals

Argument

Ukraines Local Content Requirement in the Light of WTO Rules: is a Win-Win-Win Approach Possible?

Volodymyr M. Matenchuk

Until recently, electricity in Ukraine has been produced essentially from conventional sources (i.e. fossil fuels and nuclear power). The idea of increasing the share of renewable energy in Ukraines energy mix has recently been gaining ground. Starting from 2008, Ukraine introduced a Green Tariff (more commonly known as a feed-in tariff, or in other words, a preferential guaranteed price) applicable to electricity produced by electric power generators which use alternative energy sources...

Global Legal Update

International Legal Framework for Protecting the Black Sea Environment: Historical Traits

Iryna S. Glushchenko

Although well-chartered for thousands of years before the Common Era, the waters of the Black Sea had to wait a long time before specific legal instruments for protecting its environment were adopted. In the long-term perspective the protection of the marine environment in the Black Sea region has become a source of concern for the international community due to growing deleterious and destructive effects taking place

SPECIAL RESEARCH ON THE LEGAL MARKET IN RUSSIA

Russia: from the Inside out

After the publication last autumn of special research on the legal services markets n Russia, Belarus, Kazakhstan and Georgia, as printed in our Russian language annual publication Law Firms in Ukraine 2012, the English speaking readers of the UJBL expressed their interest in the findings we made. We agree that the markets we have tried to find out more about are extremely interesting and diverse. Data collection tools consisted of in-depth interviews and questionnaires. After numerous requests, the Russian market report is now available in English

Crux

Labor Innovations under Review

Inesa Letych

Apparently, the 5% quota for employment of persons with limited competitiveness (young professionals without an employment record, persons of pre-retirement age, etc.) tops the list of the most disturbing novelties for Ukrainian employers, as envisaged by the new On Employment Act of Ukraine, which has been in effect since 1 January 2013

Andriy Kubko

On the whole, if compared to the existing Labor Code, the Draft Code is more suited to deal with the realities of employment relations. Provisions of the new Labor Code are more flexible and give the employer broader opportunities to use labor resources in line with the objectives of the business and the situation on the market

Oleg Shekhovtsov

The Draft Labor Code is full of minor gaps which are inevitable when an important document is developed by a narrow group of people. The initiating authors (three MPs) did not bother to prepare a list of their co-authors. For instance, the exhaustive list of the main rights of employees (Article 21) appears to be ambiguous given that the Constitution proceeds on the basis that the fundamental human rights stated in it cannot be exhaustive

Alexey Pokotylo

The legal framework of employment relations in Ukraine has long since required major revision. The current Labor Code of Ukraine adopted in 1971 and amended many times in the following 40 years remains largely outdated, and the many relating laws and regulations are often difficult to comprehend for non-lawyers

Taras Utiralov

The new Employment Act, as well as the Draft Labor Code are generally aimed at improving labor rights protection in Ukraine. Some of their rules are expected to have impact on employment-related disputes. At present the claims of local employment authorities for recovery of unreasonably received unemployment compensation and for unpaid unemployment insurance fees are among the most widespread litigations regarding employment

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