#7-8 July-August 2020

In focus – IT & Telecommunications

The technologies sector has gone through a real sustainability test during and after the recent lockdown. The global sector of hardware technologies is hugely affected†Ц disrupted supply chains, inflationary risks on products and a decline in purchasing power. By contrast, software production and telecom services came under abnormal pressure and followed impetus for growth. E-commerce, streaming services, remote working technologies, IT security, video conferences applications and other related solutions experience an unprecedented rise.

Expert Opinion

Anticipated Reform in Ukrainian Telecommunications Sector: Key Changes for Market Players

Natalia Pakhomovska, Olena Stanishevska

Legislative reform in the telecommunications sector appears to have been on the Ukrainian ParliamentТs agenda for some time. On 16 June 2020, the Ukrainian Parliament approved Ч in its first reading Ч Draft Law On Electronic Communications No. 3014 (the E-Communications Draft Law), which is aimed at novation of† obsolete Ukrainian legislation in the area of telecommunications and radio frequency resources (or radio spectrum as per new draft law). The new law also adjusts existing legislation to comply with EU regulations on electronic communications.

In Re

VAT Exemption for Software Products Supplies. Changes Expected?

Elena Bukuyeva

Attention has recently been paid to Law 466 On Amending the Tax Code as to Improvement of Tax Administration, Elimination of Technical and Logical Inconsistences in Tax Legislation, including to its effect on the IT industry.

Deregulatory Changes in Information Security in Ukraine

Yuriy Kotliarov, Sergiy Tsyba

Repeated cyber intrusions into Ukrainian information and industrial systems demonstrate the need for changes in its information security legal and regulatory framework.

Global Privacy Trends and Ukrainian Business

Halyna Vasylevska

A Ukrainian technology hub with brilliant engineering minds, R&D offices of global companies, and consistent growth for the past 10 years are often listed as a part of national investment attraction. At the same time, a lack of comprehensive enforceable privacy regulation is mentioned as one of the red flags for global companies when dealing with Ukrainian business. In this article, we will try to set out the main privacy challenges and opportunities for Ukrainian businesses and regulators.

News

Deals

Sayenko Kharenko advised Dobrobut

Asters advised EBRD on EUR 25 million financing to Yuria-Pharm

CMS assisted TIS Group

Asters advised EBRD on providing loan to Grain Alliance

EVERLEGAL acted as a legal partner of UNIT.City

Cases

EU court rejected claim filed by Nord Stream-2 against provisions of Gas Directive

Supreme Court confirmed bail-in legality in case of Surkis deposits in PrivatBank

Claim worth USD 5 billion filed against Google in USA for collecting data in incognito mode

Facebook lost action in dispute with German antitrust authority

Draft

Draft law on cloud services adopted in first reading

Verkhovna Rada adopted Draft Law on Joint-stock Companies in first reading

New draft law on Business Ombudsman registered with Parliament

Government approved draft law on guarantees to banks

Law digest

Law on combating tax evasion is in force now

National Bank will not fine banks for certain major violations till June 2021

Moratorium on state-financed institutions bankruptcy

Powers of the Ministry of Justice in financial monitoring extended

Law on simplifying investment attraction adopted

Terms for bankruptcy proceedings extended and fines canceled

Biz News

Mergers & Acquisitions

Epicentr K closed deal on acquisition of a large agricultural holding

Automobile

Sales of new cars in EU fell by half

Renewable Energy

УGreenФ energy surpassed nuclear power in terms of production volume for first time ever

Cabinet of Ministers signed memorandum with green electricity producers

Privatization

Centrenergo privatization is planned for second quarter of 2021

Competition

European Commission initiated antitrust investigation against Apple

Sanctions

EU leaders prolong economic sanctions against Russia over Ukraine

Banking & Finance

NBU cut lending rate to minimum historical level of 6%

Macroeconomy

Performance of all economy sectors fell in Q1 except for agro sector

Chamber News

First meeting of National Reforms Council under President Zelensky

The President of the American Chamber of Commerce in Ukraine, Andy Hunder, delivered the voice of members and investors at the first meeting of the renewed National Reforms Council under Ukrainian President Volodymyr Zelensky. Four key issues were on the agenda.

Cover Story

Consistent Commitment

The global lockdown has not only changed our everyday life but also led to mass reconsideration of investment strategies. Some countries may jump into this emerging window of opportunity by presenting their great potential and consistent commitment to understandable rules of the game. How is Ukraine mapped out among other countries competing for the allocation of investment flows? What is the perception of us among foreign decision-makers and influencers? We addressed these and many other questions to Peter Teluk, a US-qualified lawyer, who recently joined the partnership of Sayenko Kharenko.

Hot Issue

Third Party Litigation Funding: A Source of Leverage in the Great Cessation

James Hart

As a semblance of normality starts to return to our lives, we are left contemplating what lies ahead for businesses in what will undoubtedly be one of, if not the greatest, economic downturns of our era. In such an environment many businesses are forced to focus on negotiating and limiting losses rather than building capacity and finding sources of growth. The global economic pie has shrunk and there will be an inevitable scramble by companies, institutions and nations to maintain their share of it. In the legal services market this will result in two key conflicting trends: an increasingly litigious environment and a reluctance or inability to spend money on legal costs. How can these two conflicting trends be reconciled? Enter litigation funds.

Global Legal Update

KazakhstanТs Response to the Financial Impact of COVID-19

Gulnur Bekmukhanbetova

The COVID-19 pandemic and accompanying government restrictions have dramatically impac≠ted the economies of countries around the world, including Kazakhstan. KazakhstanТs oil and gas industry has traditionally been the economyТs engine. As a result, recent OPEC+ developments and the reduced demand for oil and gas represent additional challenges for Kazakhstan, increasing the impact of the pandemic on the local economy.

Argument

Factors and Methods for Minimizing Impact of Merger Syndrome within a Company

Rostyslav Nykitenko

In the context of a steady increase in consumption, the market tends towards transforming existing business entities focused on the changing preferences of the average consumer. Thus, there is a tendency towards the merger and consolidation of companies that have changed the vector of development strategy.

Crux

Legal Digest

During the past month the UJBL editorial team monitored the most significant changes in legislature, as well as new prospective initiatives. Among the most attention-worthy ones are the draft laws On Meditation, On the Institution of the Business Ombudsman in Ukraine and On Joint-Stock Companies. New laws and drafts related to the electricity market should also be highlighted. We asked experts to provide their points of view on the mentioned and following matters.

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