The priority areas of reforms planned by the Government of Ukraine are improving the investment climate and combating tax evasion. To achieve the intended results a number of events is scheduled, including:
— Preparing drafts on the deoffshorization of the Ukrainian economy;
— Accession of Ukraine to multilateral agreements on exchange of information that will enable competent authorities to quickly exchange financial and tax information;
— Gradual revision of bilateral agreements of Ukraine on avoidance of double taxation in accordance with the principles of the OECD;
— Improving transfer pricing rules and reporting on controlled transactions.
Vsevolod M. Volkov
Ukraine has undergone a couple of insolvency law reforms aimed at improving the insolvency procedures: making them faster, less bureaucratic and more efficient. The primary target, of course, was to ensure that insolvency proceedings are able to restore the solvency of the debtors or, increase the recovery rate to the creditors of insolvent companies.
Oleksandr M. Biryukîv
The treatment of distressed banks is extremely important for a market economy. It is much more important than solving the problems of general commercial organizations. The liquidation of a bank can severely affect its individuals, who are mostly individuals — depositors and accounts holders.
Dmitriy O. Abramenko, Maria M. Grechko
In terms of increasing instability in the Ukrainian economy, the financial condition of commercial organizations is worsening year on year. For last year, many of the biggest business entities faced bankruptcy. The failure of about 40% of Ukrainian banks and the participation of the Deposit Guarantee Fund in insolvency proceedings eventually lead to bankruptcy proceedings in many companies. Long-term approaches for solving the situation primarily end in selling bankrupt’s assets as the only way to satisfy creditors’ claims. The goingout-of-business sale, particularly the sale of pledged assets, is an essential and integral part of the market economy due to the fact that such a sale is the source of funds for the Deposit Guarantee System in Ukraine and a condition of stability for the private sector.
Asters — local transaction counsel for IFC
AEQUO advised Viasat World Limited
DLA Piper advised Georgian Industrial Group
Sayenko Kharenko — Ukrainian legal counsel for VTB Capital
Home Depot sued Visa and MasterCard
Mitsubishi to pay indemnification for “fuel scandal”
ECHR began considering the case of asset forfeiture in Crimea
Lithuania lost to Gazprom in Stockholm arbitration court
4G in Ukraine
New Judicial System Act adopted
On Financial Restructuring Act
Unified program for technical recording of legal proceedings
Regulation of urban planning
Criminal liability for building-up of coastal territories proposed
Amendments to Sports Act
On June 10 the American Chamber of Commerce in Ukraine held an exclusive thematic event devoted to the issue of intellectual property rights (IPR) protection in Ukraine. A Working Group on Intellectual Property Rights has been operating within the Chamber for several years now, whose aim is to improve the legislative and regulatory system with regard to IPR, thereby contributing to an increase in the competitive level of the economy and creating incentives for innovations...
Joint UBA Committees on IP Law and IT, Telecom & Internet Law
UBA Committee on International Law
Microsoft buys LinkedIn
Telenor sells its share in Vimpelcom
Chinese consortium buys game company Playtika
Credit Suisse to create new banking business
Cofco Corporation launched grain terminal
AMCU considers claim by PrivatBank
Ukrainian Aircraft Corporation
Yuzgas B.V. won tender for Yuzovsky field
Markian M. Malskyy, Natalia A. Anokhina
In 2014 Ukraine and the European Union concluded the Association agreement (hereinafter — the Association Agreement / the Agreement) aimed at political association and economic integration of Ukraine with EU states. At the same time, there is not enough information about the status of its implementation…
Economic turbulence seems to be a source of controversies of a different nature. Post-crisis developments in our country bring a new wave of contentious matters to be handled at the cross-border arena. And the role of the legal counsel remains the same – foresee possible scenarios and shape favorable ones for clients. We asked Olexander Droug, counsel of Sayenko Kharenko, to share with us the challenges for cross-border disputes present in Ukraine and explain the recent legislative initiatives for improving the so-called difficult legal environment.
Olena O. Vardamatska
Asober-minded lawyer finds it strange to see different treatment towards identical investments of foreign origin. Let's imagine for a second that hypothetically Mr. Petrenko, as a Ukrainian founder of LLC Theone with UAH 100,000 in charter capital, would not only have to contribute the money into the charter capital of LLC Theone, but also to apply for registration of his domestic investment. Otherwise, his contribution would be discriminated vis-à-vis the same contribution made by the co-founder of LLCTheone, Mr.Sydorenko. It could be concluded that the situation lacks common sense. However, no matter how absurd it may seem, that has been the case for foreign investors coming to Ukraine since 1996. Dr. Freund, who has registered his investment into Ukrainian assets could enjoy all the privileges of the status allowed for a foreign investment, while Mr. Fellici with non-registered foreign investments was abandoned on its own to face the tricky Ukrainian business environment without even those few practical benefits available to Dr. Freund. Registration of foreign investments was one of the numerous unnecessary exercises performed by state officials and yielding no actual benefit to anyone.
Anton Y. Molchanov
It is definitely fashionable to talk about reforms in Ukraine. And, if the talk is about EU-connected reforms, this fashionability becomes absolutely sophisticated. Any parallels with the fashion market are more than applicable — when a new trend is born, lots of mimics will follow.
As Ukrainian reforms in judiciary and commercial frameworks have been moving forward, the more Ukrainian legal practitioners try to use foreign expertise and follow foreign trends. In a vast majority of cases such voyeurism is more than appropriate, but should we talk about an actively-discussed EU Recast Regulation on Insolvency — it is definitely not.
For 10 years the CIS Local Counsel Forum was a travelling professional venue, gathering legal professionals in different capitals of newly independent states. In the past year the conference was renamed to ECA (Europe — Caucasus — Asia) Forum and in Tbilisi was officially presented as new regional forum of the International Bar Association...
Despite the hot summer season a portion of legislative novelties arrived from Parliament and posed lots of questions for precise consideration. We continue to be at the forefront of news and developments. Our expert panel shares its views on the long-anticipated reform of the judiciary, enforcement service, financial restructuring; measures for effective customs procedures, anti-corruption incentives, pharmaceutical regulation.
I am convinced that one long-awaited outcome of numerous legislative changes in the administration of justice should be the restoration of confidence in domestic courts. This, in turn, will make our country attractive for investments and a legal safe harbor for doing business in it. This will multiply the existing economic potential of our country, which is contingent on its special geographical location, natural resources, scientific and technological and human potential.
The most essential changes in protection of intellectual property (IP) rights concerning further establishment of the Higher Court on Intellectual Property Issues, as a court of first instance, with only two instances for IP cases.
The initial version of the Draft Act On Financial Restructuring (submitted by the Cabinet of Ministers to the Parliament and adopted in the first reading) was much more ambitious than the version of the Act actually adopted by the Parliament. Its main feature, revised Article 6 of the Ukrainian Bankruptcy Act allowing pre packaged restructurings to be approved by majority creditors and be binding on all minority creditors, has been removed and the Act adopted by the Parliament addresses fully consensual restructurings only.
The Act introduces “a new player” into the enforcement procedure in Ukraine — the private enforcement officer. It was no secret that the enforcement proceedings in Ukraine were inefficient and required significant reform. The reasons of actual non enforcement of a vast portion of court judgments in Ukraine include possibilities of delay of enforcement actions by the debtor, technical difficulties in fast and proper search of debtor’s property, lack of real liability for not enforcement of court judgments, to name a few.
I do not believe that these innovations will have a significant impact on the level of corruption at customs. First of all, the legal framework, on which these “innovations” are based, is very dubious. In particular, a Resolution of the Cabinet of Ministers of Ukraine cannot introduce changes to the Customs Code and cannot contradict it. It is not clear on what basis, in terms of the Customs Code, the customs control zone will be attended by representatives of the State Border Service and the National Police. I’m afraid that too many subjects of foreign economic activity shall successfully litigate any action of “customs’ hundreds”. Sadly, just as before, the government does not pay much attention to legislation, but acts through method of administrative experiments.
On 16 July 2016, Parliament was unable to include Draft Act No. 4811 in the agenda of the session, which resulted in lots of discussions between the supporters and opponents of the document. This Draft was submitted instead of Draft Act No. 4057, which was previously rejected by the Committee and has received a series of comments from the Council of Europe.
Lana Sinichkina, Oleksandr Maznov,
On 19 June 2016 the Act of Ukraine On Amendments to Article 9 of the Act On Medicines regarding State Registration (Re-registration) of Medicinal Products came into force. The Act provides a significantly shorter term and less bureaucratic procedure of state registration of medicines previously registered by competent authorities of the USA, Switzerland, Japan, Australia, Canada and the European Union (EU centralized procedure). The value of this novation is hard to overestimate.
In September 2015 amendments to the On Television and Radio Broadcasting Act of Ukraine as of 21 December 1993, No. 3759-XII came into force, which provide for mandatory disclosure of information on ultimate beneficial owners, affiliates and the ownership structure of entities in television and radio broadcasting domain.
The system of social guarantees is succeeded by monetization, which will replace benefits for monetary compensation. Monetization of social benefits by EU countries demonstrates a positive effect. Thus, it is necessary to consider that social reform requires an information campaign and step-by-step implementation with a transition period.
Today in Ukraine the Act of Ukraine On Operational Investigations of 1992 is valid. It should be noted that the mentioned Act has under-gone significant changes in the process of reform of the criminal process. However, the actual concept and principles that were set in the Act of 1992 and Criminal Procedural Code of Ukraine 2012 are different. The changes that have been made in to the Act were aimed at its coordination with the Code, but did not affect the principles of the Act.
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