#1-2 January-February 2021

In focus – Infrastructure

Ukraines obsolete and non-competitive infrastructure, routinely patched up since Soviet times, is a key constraint on increasing cross-border trade and capitalizing on Ukraines geographical location. Modernizing our transport infrastructure is an extremely expensive undertaking. Different estimates result in substantial figures and start from USD 60 billion. But any further status quo may lead to a steady reduction in export potential and transit capabilities.

Expert Opinion

Infrastructure Development Through an Unsolicited PPP Proposal in Ukraine

by Volodymyr Yaremko, Vladlena Lavrushyna

Public-private partnership (PPP) can be described as a way of delegating provision of public and municipal services to the private sector. Due to commonplace budgetary constraints, PPP can be an efficient solution for tackling infrastructure issues that require both proper management and large investments. PPP enables the bringing of know-how, technologies and investments of the private sector to public infrastructure without eliminating public sector supervision. Taking into consideration the stage at which the Ukrainian infrastructure currently finds itself (see, for example, a presentation of the EBA Infrastructure Index) it is hard to imagine how, other than with solid investment from the private sector, the value of Ukraines infrastructure can increase significantly.

Volodymyr Yaremko is a counsel at Sayenko Kharenko
Vladlena Lavrushyna is an associate at Sayenko Kharenko

In Re

Road PPPs and Concessions in Ukraine

by Oleg Matiusha

Despite the pandemic and related economic downturn, Ukraines infrastructure sector was among the economys most active sector in 2020. The Ukrainian government launched the ambitious Big Construction program aimed at the modernisation of the countrys infrastructure, including mass reconstruction of roads and bridges at the state and municipal levels.

Tourism Infrastructure: New Investment Opportunities for Faster Recovery After the Pandemic

by Olena Stepanova, Alyona Shulima

The COVID-19 pandemic and the subsequent quarantine have significantly changed the global economic and social landscape. One of the sectors for which mobility restrictions had a very direct and destructive impact was tourism. While most industries were able to find some digital solutions to continue operations during lockdowns, hotels remained almost empty during the spring lockdown in Ukraine, and reported significant falls in occupancy in the following months compared to previous years.

Olena Stepanova is an associate at Hillmont Partners
Alyona Shulima is an associate partner at Hillmont Partners

News

Deals

EVERLEGAL advised Novopecherska School on EUR 10 million loan

Sayenko Kharenko represented Zhejiang Longda Stainless Steel Co., Ltd

Asters and INTEGRITES advised on convertible loan from IFC to Ukrgasbank

Asters advised Smart Holding on the sale of Unex Bank

Baker McKenzie advised IKEA

Cases

Google fined once again in Russia

Court refused to lift the seizure imposed on Motor Sich shares

Tax assessment notice to be appealed within one month

Supreme Court took side of PrivatBank in Kyiv hotel case

British American Tobacco lost appeal on UAH 80 million fine

Draft

Improvement of mechanism for collecting and distributing royalties

Adopted law on virtual assets enables crypto firms to operate legally

Law digest

Parliament ratified Strategic Partnership Agreement between Ukraine and UK

VAT cut to 14% for some areas of agricultural sector

Draft law on investment nannies adopted

Law on electronic communications adopted

Biznews

Competition

EUcompetitionauthorities pursue investigation into Google advertising practices

Oil & Gas

Ukraine increased oil imports in 2020 by more than 50%

Tourism

Tour operators now obliged to indicate cost of tours in UAH

Banking & Finance

The World Bank will grant USD 300 million loan to Ukraine

Moodys raised the ratings of 8 Ukrainian banks

NBU retained discount rate at 6% per annum

Sanctions

EU refused to certify Nord Stream-2

M&A

Louis Vuitton acquired jewelry company Tiffany

Fiat and Peugeot merger created one of the largest carmakers in the world

Cover Story

Investment Technology

Ukraine has at its disposal unique geographical location at the crossroads of the main trading routes between Europe and Asia. But this strong advantage and great ambitions to become the core transit hub face the big problem of an obsolete transport infrastructure inherited from Soviet days, which requires significant investment. How should the interests of private investors and the state be secured, at the same time preserving a reasonable balance? We discussed the development of existing investment technologies with Andrii Pidhainyi and Marina Sharapa, partners of AGRECA Law Firm, who have been involved in shaping sectoral policies for the last decade.

Global Legal Update

Future of Infrastructure and Construction Market in Poland 2021-2027

by Andrii Romanchuk

The construction industry proved to be an industry extremely resistant to COVID-19 in 2020. I am writing this article from the perspective of a Ukrainian who has been living in Poland since 2014, observing the construction boom there and benefiting from Polish infrastructural success. This country is building its road and rail infrastructure all of the time, as well as industrial and warehouse facilities. The development market currently remains stable due to low interest rates and the desire to preserve the value of money in real estate.

Andrii Romanchuk is a partner and head of the Warsaw office of EUCON Legal Group

Argument

Responsibility for Criminal Offences in the Field of Water Transport According to Criminal Legislation of Ukraine

by Iryna Radkovska

Water transport is a valuable component of contemporary life, and one of the main arteries of the global economy. Its role within the COVID-19 pandemic and acknowledgement of representatives of the field as key workers, along with medical personnel, are evidence of the mentioned thesis. The importance of this field of social relations can also be proven by the presence of the distinct Chapter XI of the Special Part of the current Criminal Code of Ukraine (hereinafter CC of Ukraine), devoted to protecting relations in the field of transport, including water, from illegal violations.

Iryna Radkovska is an assistant and aide to a Member of the Ukrainian Parliament

Shipowners Liability Towards Seafarers: Bioethical Issues

by Oleksandra Fedko

Maritime and Medical law can rarely be mentioned as branches of law in a single sentence. In fact, they rarely share the subject to regulation. So where is their meeting point? The pandemic was peculiar in many aspects last year. We shall focus only on one of them: the COVID-19 crisis attracted an unprecedented amount of attention to the driving force of the entire maritime shipping industry seafarers. By the end of 2020 the common struggle of the International Maritime Organization, the International Labour Organization, the International Chamber of Shipping, the International Transport Workers Federation was crowned by the United Nations General Assemblys resolution on International cooperation to address challenges faced by seafarers as a result of the COVID-19 pandemic to support global supply chains, adopted on 1 December 2020.

Oleksandra Fedko attorney-at-law, is an individual practitioner

Crux

Legal Digest

Over the last two months the editorial team has monitored legislative initiatives and changes that may be of particular interest to our readers. We asked legal experts to give us their hands-on comments. Particularly on our radar are Law No. 995-IX, which foresaw the withdrawal of the Treaty on Implementation of Coordinated Antimonopoly Policy in CIS countries; the Strategic Partnership Agreement between Ukraine and Great Britain; the Law of Ukraine On Electronic Communications; Draft Law On Energy Efficiency; Draft Law No. 4537, which aims to regulate the mechanism and allocation of royalties and others.

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