#03 March 2019

In focus – White-Collar Crime

This past year legislators paid attention to the fact that it was not just political instability that scares away investors from Ukraine. The pressure exerted by law-enforcement bodies within criminal proceedings is just as influential as other factors in making the business environment insecure...

Expert Opinion

Dawn Raids Stop Laws: Where are We Now on Countering Pressure Exerted on Business?

Sergiy Grebenyuk, Orest Stasiuk

The shortcomings and discrepancies that can be found in Ukrainian laws as well as the proper operation of the Ukrainian judiciary and other law-enforcement agencies have been and continue to be viewed as factors affecting the level of the business climate and investment coming into Ukraine.

At the beginning of 2016 the Business-Ombudsman Council summed up the most pressing issues in this area in its systemic report, referring, inter alia, to the unlimited terms of pre-trial investigation, uncivilized searches, impossibility for companies, subject to criminal proceedings, to effectively protect their rights as well as the lack of venue to hold law-enforcement officials personally liable in the event of unlawful actions...

In Re

Asset Recovery and Management Agency: Ukrainian Implementation

Denys Nienov

Within the framework of implementation of the EU Action Plan on Visa Liberalization with Ukraine and performance of other international obligations undertaken by Ukraine, the National Agency of Ukraine for Finding, Tracing and Management of Assets Derived from Corruption and Other Crimes was established (Asset Recovery and Management Agency, or ARMA) in December 2015. In terms of its structure, scope of functions and legal status, it has no equivalents in the system of Ukrainian public authorities.

The main purpose of ARMA is to ensure the inevitability of negative consequences for commission of criminal offenses, primarily corruption, through the deprivation of offenders of the economic benefits derived from their misconduct...

Crime and Punishment of an LLC Director

Elena Koch, Maxim Karpenko

The main purpose of establishing a limited liability company (hereinafter LLC), irrespective of its jurisdiction, is limitation of possible liability, particularly financial loses that may occur as a result of the risky nature of entrepreneurship. Being limited preserves the personal assets of a companys shareholders. Thats the main reason why this form of business organization is the most common in the world, and Ukraine is no exception. There were close to 600,000 LLCs in Ukraine as of 1 December 2018.



AVELLUM advised PrJSC Jacobs Douwe Egberts Ukraine

Asters advised Emer Group Limited

AEQUO advised Posco Daewoo

AVELLUM advised Kernel

AEQUO advised Dragon Capital on acquiring stake in Ciklum


Mariupol Heavy Engineering Machine Building Plant declared bankrupt

Naftogaz wins UAH 5.2 billion from Ukrtransgaz in court case

Privatbank won Hague court case related to assets in Crimea against Russia


There are proposals to increase the maximum income limit received by private entrepreneurs of groups 1-3

Ukraine likely to withdraw from treaty establishing economic space with Belarus, Russia

Government supported Draft Law On Common Transit Regime

Law aiming to create conditions for foreign trade development by Ukrainian companies

Law digest

State Budget of Ukraine to be planned three years in advance

Ukraine and Switzerland amend convention on double taxation

Parliament adopted law on protection of economic competition



Ukrenergo transferred to management by the Ministry of Finance

Norwegian company to start building one more solar power plant in Ukraine


Amazon invests half a billion US dollars in self-driving car


Small privatization already earned UAH 700 million

Trade Policy

EU Japan Free Trade Area Agreement came into force


USA filed formal charges against Huawei


AXA closed sales of its insurance business in Ukraine


AMCU allowed T.A.S. Overseas Investments Limited to acquire Cosmo chain

Chamber News

AmCham Ukraine Holds Annual Members Appreciation Reception in Kyiv

The American Chamber of Commerce in Ukraine held its Annual Members Appreciation Reception on 5 February. It brought together 450+ distinguished guests, namely Chamber Members, state officials, partners and friends of the Chamber...

Cover Story

Legal Methods

The transparency of the public sector is an attribute of developed countries. It ensures public trust in the state and its representatives. The launch of electronic declarations for all Ukrainian public servants, which envisages disclosure of assets and income, is a breakthrough step in fighting corruption.

The exposure of wealth resulted in a new wave of suspects and prosecutions. Just as expected we are seeing more proceedings opened by law-enforcement bodies on the eve of the coming presidential elections.

We talked to Olha Prosyanyuk and Artem Drozdov, partners at AVER LEX Attorneys at Law, to learn the latest practice in these cases and implications of the recently adopted decision of the Constitutional Court.
The defense counsel always reveals a broader picture and explains how important it is to control the use of legal methods at all stages of proceedings.

How To

How to Distinguish between Disputable Tax Matters and Criminal Tax Evasion

Alexander Minin

There are several reasons for raising this topic now: (i) a newly evolving wave of increasing criminal investigations on tax evasion, (ii) the fact that theyre handled in the main by state agencies less than preceding ones (like the tax police) experienced in these issues (like the National Police), (iii) attempts to establish uniform state agency on finance/tax/budget-related and other economic crimes (like a bureau on financial investigations) without even trying to set out more precisely what the relevant crimes are.

The increasing number of criminal investigations on tax evasion is seen in the following figures: based on the data reported by the Prosecutor-Generals Office, the total number of criminal investigations on the subject (respective article of the Criminal Code) launched just in the first 9 months of 2018 totaled 875, which was already more than for the preceding year of 2017 (838). That shows how this issue is growing.


Registration of a Foreigner as a Private Enterpreneur in Ukraine

Bohdan Dutkovsky is a counsel at OSTIN Law Firm

The possibility of an individual registering his or her business activity can actually, on the basis of a physical entitys status, and, moreover to also obtain status of single tax payer, be considered a great privilege in a democratic society. This is because in such conditions such an individual is free of charges to provide for the existence of such a legal entitys attributes: administrative staff, office, complicated accounting, etc. These possibilities can be regarded as bigger privileges for individuals who are not citizens of the state, where they expect to act in such manner and Ukraine provides such possibilities for its non-citizens.


Legal Digest

A new portion of legislative novelties were submitted by the Ukrainian Parliament and Cabinet of Ministers last month, which leave many questions to consider. We asked a handful of experts to share their views on the Draft Law On the Regime of Common Transit; the idea of mid-term or multi-annual budgetary planning; prolonging of the moratorium on the sale of agricultural land; Agreement On the General Terms and Conditions of Supply of Goods between Organizations of the CIS Member States as well as Draft Law No. 6746 providing for more certainty in a number of procedural rules of the Law of Ukraine On Protection of Economic Competition and lots of other issues.

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