Iaroslav V. Medvediev, Andriy M. Gumenchuk
The period 2015 — early 2016 was a very fruitful one for Ukrainian competition law and its regulatory framework. On 19 May 2015 Yuriy Terentyev, former deputy CEO, chief legal counsel of ArcelorMittal Kryvyi Rih, was appointed Head of the Antimonopoly Committee of Ukraine (AMCU). Throughtout the summer of 2015 the President of Ukraine appointed new state commissioners of the AMCU, thereby refreshing the looks of Ukrainian competition authority by experienced professionals with business background.
Such appointments have already made a contribution to reforming Ukrainian competition law. The Ukrainian Parliament and AMCU addressed the long-expected requests of the European Union, Ukrainian business community and foreign investors and introduced essential legislative changes, which are aimed at the overall improvement of domestic competition law.
Taras V. Dumych, Mykhailo S. Razuvaiev
On 26 January 2016 the Ukrainian Parliament took a long-awaited and significant step to improve the legal framework on merger control and adopted the Act amending the On Protection of Economic Competition Act of Ukraine (the CompetitionAct). The Act will come into force on 18 May 2016.
By introducing a two-tier jurisdictional test and a simplified review process, as well as raising the turnover/assets thresholds, the Act will considerably decrease the regulatory burden on undertakings and shorten the merger control review process. Foreign-to-foreign transactions are expected to benefit from the overhaul. The Act can be considered as an important move to improve the overall image of Ukrainian merger clearance practices, which up till now have been considered as one of the most difficult in the world and as a bottleneck for cross-border M&A transactions...
Galyna P. Zagorodniuk, Dmytro A. Tkachenko
In accordance with the Ukraine-EU Association Agreement, Ukraine has agreed to harmonize its competition laws and enforcement practices with the relevant EU regulations. The Verkhovna Rada of Ukraine and the Antimonopoly Committee of Ukraine (the Committee) have already taken significant steps towards implementing the provisions of the Association Agreement by adopting guidelines on the imposition of penalties for violation of antitrust laws and by increasing merger control thresholds. However, building on these achievements, the Committee still has to bring its enforcement practices into line with the concepts and practices of contemporary EU antitrust rules.
In particular, back in 2011 the Committee began an investigation of the medicines market with a focus on pricing and discount strategies at the wholesale level. While the Committee issued recommendations to some market players, the investigation is on-going and uncertainty as to what types of pricing models and discounts are allowable remains unresolved. Therefore, it may prove useful to look into concepts and policies developed by the European competition authorities within the investigation of European markets of medications...
Avellum — legal counsel to Hamed Alikhani
Sayenko Kharenko advised Oschadbank
Integrites — legal advisor to Nova Poshta Group
AEQUO advised Danone S.A.
Sayenko Kharenko advised Goldman Sachs
Avellum advised the Ukrainian Ministry of Finance
Sayenko Kharenko — Ukrainian legal advisor to PJSC Moscow Exchange
Trade Policy
New Disputes with Russia at WTO
M&A
Deutsche Boerse and London Stock Exchange agreed terms for merger
Banking & Finance
Ukraine received USD 331 million loan from Japan
Privatization
List of state-run companies not subject to privatization is shortened
Capital Markets
Apple placed USD 3.5 billion worth of Bonds
Doing Business
German-Ukrainian Chamber of Commerce and Industry
What Business Expects from the Agricultural Sector in 2016 chamber News
According to the Chamber Investment Climate Survey, which was held at the end of 2015, 166 Members of the American Chamber of Commerce in Ukraine identified agriculture as the most prospective area for growth in 2016. However, Chamber Members believe that this sector requires elaboration, as well as development of alternative instruments of financial support for small and medium-size farmers, further deregulation (to simplify the process of obtaining permits) and the introduction of the agricultural land market. Therefore, the Chamber determined the TOP-3 policy priorities in agriculture for this year...
When Ukraine is criticized for the absence of ground-breaking reforms, competition law is probably one of the most rapidly changing areas with certainty of long anticipated changes. The new rules of the game affect the speed and quality of business decisions, short and long-term strategies, scope of legal work and also help to reshape the subsequent market as such.
We decided to learn about a broader vision on these issues from both private and public perspectives in our conversation with Antonina Yaholnyk, founding partner of competition law boutique CLACIS.
Kostiantyn M. Buialo
The coming into force of the Ukraine–European Union Association Agreement’s economic section and simultaneous deterioration of domestic market conditions is forcing Ukrainian business to develop and implement strategies for entering the markets of EU member states.
When people speak about doing business in one of the EU countries, they often forget that the European Union provides residents of its member states with four major freedoms: free movement of goods, free movement of persons, free movement of services, and free movement of capital. However, in order to take advantage of these freedoms, both individuals and legal entities have to be residents of one of those EU member states.
Therefore, an entrepreneur who is considering doing business on EU territory faces the issue of selecting a country, residency in which would be an optimal “point of entry” to the EU market. After all, having gained resident status in any of the European Union countries a person gets the opportunity to offer goods and services freely and to relocate capital across the whole of EU territory.
Hence, let us draw your attention to Slovakia as an optimal “point of entry” to the European market. It is a country that shares a common border with Ukraine, where it is rather easy to overcome non-tariff barriers, and where residents traditionally have a positive attitude towards Ukraine and its citizens...
Over the last month many legislative initiatives were submitted to parliamentary committees for consideration. Our traditional commentary section looks at some of the latest legislative changes and a large number of proposed draft acts that require thorough analysis. The carefully collected comments may, as usual, shed some light.
The Ukrainian Parliament ratified The Social Security (Minimum Standards) Convention No.102 Draft Act No.0091. How can this document affect work arrangements and labor provisions and the rights protection of salaried workers?
Volga Sheyko, associate, Asters
It is noteworthy that the Ukrainian Parliament ratified The Social Security (Minimum Standards) Convention partially, i.e. it will not affect, for example, the pension system. In my opinion, it might be related to the possible future introduction of the accumulative pension system in Ukraine. The ratification of the Convention by itself does not guarantee either judicial protection in the health service or the expansion of categories of citizens that are subject to the provisions of this Convention.
The last act on visa-free EU travel, namely on electronic declaration of officials’ assets and income, was passed in the Ukrainian Parliament on 15 March. How can it influence the fight against corruption? What has been left unnoticed and needs additional revision?
Sergiy Gryshko, partner, head of dispute resolution, Redcliffe Partners
The fact, that following hot debate and much resistance from certain MPs, the Ukrainian Parliament passed the Act of Ukraine No. 1022-VII (the Electronic Declarations Act) is of immense importance. Contrary to popular belief, the Electronic Declarations Act does not introduce the electronic declaration of state officials’ incomes, but repeals the delay in implementing it and introduces some important new rules.
The Cabinet of Ministers of Ukraine approved the Draft Act On the Establishment of a Business Ombudsman. What rights should be established for a Business Ombudsman? How can the introduction of this institute affect the investment attractiveness of Ukraine?
Sergii Androshchuk, senior associate, AstapovLawyers International Law Group
The Business Ombudsman is a “bridge” between business and government that promotes the protection of enterprise entities during the implementation of constitutional law on entrepreneurial activity, as well as protection from corruption and other forms of unfair behavior in the field of management.
Draft Act On Financial Police, No.4228 provides the establishment of Financial Police and liquidation of the Tax Police. What means on exposure, suppression and investigation of crimes in the formation and use of state financial resources, and in the field of economic security, can the new authority receive?
Vyacheslav Krahlevych, partner, FCLEX Law Firm
The Draft Act provides for the creation of a new law-enforcement agency called the Financial Police. It is a body whose function will be to investigate and solve crimes in the domain of formation and use of state financial resources and economic security.
The document defines the legal status and the powers of the body, etc.
In fact, the draft provides for the liquidation of the tax police, and for the creation of the Financial Police. That is, for the Implementation of the all-national concept of reformation of the State Fiscal Service of Ukraine, as of public service bodies without the law-enforcement function.
Draft Act No. 4203 envisages introduction of a criminal liability for circumvention from the distribution of impartial cases by the automation system of document control in courts. Does it solve the problem and allow the corruption element to be eliminated? Which additional mechanisms could be used to bring the automation system of document control into line with international standards?
Andrii Hvozdetskyi, associate, Spenser & Kauffmann
This draft proposes to criminalize bringing a lawsuit with several identical claims containing formal defects, in order to select loyal judges for the proceedings.
In my opinion, the respective amendments do not solve the problem. This does not apply to the issue of corruption, but it is the very disposition of the Criminal Code.
Draft Act No. 4057 On Amending the Criminal Procedure Code of Ukraine (in case of special aspects of recovery recourses to the state before adjudgment) puts the special confiscation procedure in place. Will the present initiative fight corruption effectively? What problems can arise in the course of practical application?
Vitaliy Serdyuk, Partner, AVER LEX Attorneys at law
Victoria Kirina, Attorney of Criminal Law Department, AVER LEX Attorneys at law
Draft Act No. 4057 in the version adopted by the Verkhovna Rada in the first reading (as well as numerous attempts to expand the basis for implementation of the procedure of special pre-trial investigation) should be considered not as an instrument to fight corruption, but as the negative tendency to “legalize” usage of the criminal process as mechanisms for eliminating political and business opponents.
Thus, while developing and adopting draft act No.4057 the principle of presumption of innocence and the principle of inviolability of private property were grossly ignored.
The main purpose of Draft Act No. 2897 On Amendments to Certain Legislative Acts of Ukraine on Introduction of Criminal Offenses is fulfillment of state policy on humanization of criminal liability. How can it affect the legal practice and work of criminal defense attorneys?
Sergey Protasov, senior associate, attorney at law, Trusted Advisors
Draft Act No. 2897 is a logical extension and an integral part of the reform of the law-enforcement authorities. It amends the Criminal Code, Criminal Procedure Code, the Customs Code of Ukraine and the Code of Ukraine on Administrative Offences.
How can Draft Act No.4216 On Amending Certain Legislative Acts regarding Reaction for Unlawful Takeover and Despoilment of Commercial Entities affect corporate relations and the investment climate in Ukraine?
Pavlo Shovak, associate, Avellum
The Draft aims to restore the VAT position of agricultural producers, which they had prior to the last tax reform, and to provide equal VAT refund treatment for taxpayers.
