#10 October 2013

In focus – Restructuring & Insolvency

For many years significant gaps and loopholes in Ukrainian insolvency law have been used for unfair business schemes. But at the beginning of 2013 significant amendments to legislation were introduced. The new rules had an impact on both debtors and creditors and were long expected in the country…

Expert Opinion

The Amended Ukrainian Insolvency Law: Key Issues

Olexiy Y. Soshenko, Andrii L. Grebonkin

In the course of restatement of Ukraine’s insolvency law (the Insolvency Act) that came into effect on 19 January 2013, several significant amendments were made. The changes were an attempt to create a more streamlined and efficient insolvency process and to remedy some of the real and perceived defects in the current law. In doing so, legislature implemented some fairly significant changes to the Insolvency Act which impact both debtors and creditors…

In Re

Declaring a Transaction of a Debtor Invalid: a New Approach to an Old Issue

Yaroslav V. Teklyuk, Valeriia V. Tryfonova

On 19 January 2013, a new edition of the On Restoration of Debtor’s Solvency or Declaration of Bankruptcy Act of Ukraine (the Bankruptcy Act) came into force, embodying an ambitious and long-awaited reform of the institution of bankruptcy and insolvency proceedings as a whole. But legal circles are still mulling the new version of the Bankruptcy Act, because its adoption, on the one hand, has introduced a number of substantive progressive innovations but, on the other hand, it has also added some controversial aspects to legal regulation of bankruptcy proceedings…

Debt Restructuring Tools in International Capital Market Transactions

Olena V. Polyakova

In 2013 several new Eurobond offerings by Ukrainian issuers were coupled with restructuring of their liabilities under existing Eurobonds from the previous issues. By way of an example, a new issue of USD 600 million 7.875% high yield notes by DTEK Group was coupled with a tender offer transaction in respect of the outstanding USD 500 million 9.50% notes. In the agricultural sector, a new issue of USD 750 million 8.25% high yield notes by MHP was coupled with a tender offer transaction in respect of the outstanding USD 584,767,000 10.25% notes…

How can a Subsidiary become Free from Foreign Parent Debt

Volodymyr O. Yakubovskyy, Kateryna Y. Safronenko

Many multinational companies have experienced rather difficult times doing business in developing countries for the last five years, given that even economies in developed countries are still struggling to fully recover from the global financial crisis. Under these circumstances, one can quite often see those global companies restructuring their network of subsidiaries in emerging economies to restore a healthy business and get the books in order. This is important for refinancing or attracting investment. Simple cost cutting and divesture of less performing industries and markets is also the reason for such restructuring…

Case Law

Forewarned is Forearmed, or Recent Case Law on Trade Defense Remedies

Nataliya Y. Mykolska, Anzhela M. Makhinova

On its path to the WTO, in 1998 Ukraine adopted legislation specifically addressing trade defense proceedings and remedies, namely: the On Protection of National Producer against Dumped Imports Act of Ukraine, On Protection of National Producer against Subsidized Import Act of Ukraine and On Application of Special Measures against Imports into Ukraine Act of Ukraine.

Since then and until June 2013, Ukraine initiated 33 antidumping and 36 safeguard investigations. No anti-subsidy investigations have yet been conducted in Ukraine…


Investigators’ Legal Status in Entering Clinical Trial Services Agreements

Lana V. Sinichkina, Igor P. Svitlyk

According to practice established in Ukraine, investigators are contracted in two capacities: as private entrepreneurs and as individuals. However, due to the lack of clarity of the legislation, а question often asked lately by the community involved in clinical trials for medicines can individuals entering into clinical trial services agreements with non-resident sponsors or contract research organizations (CRO) can enter into such relations without becoming entrepreneurs…

Recent Gambling & Lottery Developments in Ukraine: Are They Worth A Light?

Pavlo I. Byelousov

Until 2012 the situation with gambling and lottery regulations in Ukraine was far from positive and predictable from the operators’ perspective. The lottery business market was closed for newcomers following the moratorium on lottery business introduced in 2005, while gambling activities have been totally prohibited due to the gambling ban imposed in 2009.

In 2012-2013 Ukraine faces new developments in lottery and gambling regulations. These developments are triggered by different factors, and thus the regulations are considered separately, since the lottery and gambling operators lobby their interests severally…

Business Lunch

8 Key Questions on Corporate Restructuring

Development of efficient tax and corporate structures from the perspective of shareholders and potential investors are key issues in a business restructuring. Each cross-border restructuring usually involves several jurisdictions. Answers to some of the most frequently asked questions on the cross-border restructuring of Ukrainian business has been given by Yuriy Nechayev, senior associate at Avellum Partners…


Dynamic Arbitration Industry

In fact, the arbitration industry is a dynamic one and is evolving all the time in line with the needs of business. A current panel gives an updated overview of the most recent developments in venue preferences, costs and concerns, new specific regulations, legal advisor’s role, and self-regulation achievements…


Anna Kombikova

Ukrainian businesses still opt largely for the International Commercial Arbitration Courts both at the Ukrainian and the Russian Federation Chambers of Commerce and Industry. This fact has a great deal to do with the geographical location of these institutions, the language issue, and, naturally, the cost of arbitration…


Anna Tkachova

Today international arbitration is a convenient and popular means of dispute resolution for a large variety of international disputes.

The notion of international arbitration covers international commercial arbitration and investment arbitration. International commercial arbitration is used to resolve international commercial and contractual disputes between private law entities…


Ivan Zievakov

When choosing a place for arbitration the parties usually rely upon certain subjective circumstances that are relevant specifically for these parties in this particular matter. The following are among the most common criteria for choosing a particular place of arbitration:

  1. Reputation of arbitration institutions. Among the most important requirements for arbitration court are its independence, impartiality and competence…


Kateryna Zviagina

In the past few decades, arbitration has become a mainstay in resolving legal disputes. The most popular and the most expensive seats of arbitration are London, Paris, New York and Geneva. Singapore has emerged as a regional leader in Asia. According to statistics the most negative attitude and perception is of Moscow and mainland China as seats of arbitration. The International Court of Arbitration (ICC) is the most preferred and widely used arbitration institution. London Court of International Arbitration is the second most preferred institution and American Arbitration Association/International Centre for Dispute Resolution (AAA/ICDR) is in third place…


Olena Perepelynska

An expert’s report is often used as evidence in international arbitration. However, its evidentiary weight and significance could substantially differ depending on (i) the method of appointing such an expert as well as (ii) the subject matter of the expert's analysis.

The expert could be appointed by the party, arbitral tribunal or according to the mixed procedure (e.g. Sachs Protocol)…


Dmytro Donenko

In international arbitration the term conflict of interest is generally used to describe a situation when an arbitrator is involved in multiple interests, one of which could possibly corrupt his motivation to act independently and impartially. Needless to say that the existence of conflict of interest is absolutely unacceptable if the interests of justice are at issue…


Andrii Kubko

Speaking about a lawyer’s work in this area, one should bear in mind investment arbitration deals with the responsibility of the state. This responsibility is based on international legal standards which include both multilateral and bilateral investment treaties, generally acceptable international legal principles, customary international laws, and awards made by international arbitral tribunals…


Oleksandr Denysenko

The main challenges in recognition and enforcement of foreign arbitral awards in Ukrainian courts are related to the low level of awareness about relevant legal norms among Ukrainian judges, especially those who work in courts of first instance. The recognition and enforcement of foreign arbitral decision require from judges a good understanding of the main international treaties which are binding for Ukraine, such as the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958, the European Convention on International Commercial Arbitration of 1961, the Kiev Agreement on Settlement of Commercial Disputes of 1992 and others… 


Markian Malskyy

There are two international arbitration institutions at the Ukrainian Chamber of Commerce and Industry (UCCI): International Commercial Arbitration Court (ICAC) and International Maritime Commission (IMC). The main advantages of those dispute resolution forums are the reasonable costs of arbitration and a less formal procedure compared to litigation in Ukrainian courts…


Tatyana Slipachuk

The launch of the Ukrainian Arbitration Association (UAA) in November 2012 created strong stimuli for those interested in international commercial arbitration to join efforts and contribute to promoting arbitration and developing an arbitration-friendly environment in Ukraine.

Following its creation the UAA organised and co-organised several arbitration events and carried out a range of educational and promotional activities. Among the latter activities:

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