#09 September 2018

In focus – Corporate Security

Doing business in Ukraine is more than ever implicating a corporate security strategy. And it is on the rise. This comprehensive term is often associated with resisting corporate raiding and protection from criminal persecution. However, it’s a much broader concept that includes a range of components like good governance and anti-raiding resistance, data protection, cyber-security, compliance and internal security service, interaction with state authorities and GR. Even more, it consequently determines a new approach to managing business and comprehensive risk assessment as its core essential.

Expert Opinion

Corporate Risks under the Law on Companies

Maxim Oleksiyuk, Victoriia Minets

The Law of Ukraine On Limited and Subsidiary Liability Companies (Law On Companies), which has been in effect since 17 June 2018, established new rules for the most common type of legal entities in Ukraine (LLC) and entails new risks and opportunities.

In Re

Need for Compliance, or How to Get your Business Protected while Dealing with the Authorities

Olga Shenk

It is no secret that in Ukraine dealing with all kinds of regulatory and/or enforcement authorities is simply part of doing business. Requests for documents or information from the authorities or visits of their officials, expected or unexpected, cannot be avoided and are always associated with lower or higher risk of negative consequences for a particular company.

Control over interactions with the authorities is an extremely serious matter, which should be specifically addressed in each companys security strategy, since uncontrolled actions of the companys employees can be crucially harmful for the whole business. It can so happen, for instance, that an employee provides the authorities incomplete or inaccurate information regarding the companys business, or discloses commercial secrets without any legal ground, or even tries to bribe a visiting official.

New Instruments of Corporate Security

Max Lebedev

Strong oversight of corporate security and risk-taking is surely one of the most critical components of the process of company management. We are no longer talking about whether or not boards should implement corporate governance and compliance policies: in the current climate we are grappling with the issue of all-round companies protection, which raises a much more meaningful set of questions.

Know Your Business Partner: Mitigating Corporate Security Risks Through Ukrainian Transparency

Denys Vergeles, Oleksandr Katolik

Researching a business partner may provide a better understanding of a business transaction, unveil hidden risks, bring useful negotiating points and help further planning. In addition, identification of risks may be used to provide a certain kind of protection, reduce costs or future compensation of loss. On top of that, research costs are likely to be less than legal related expenses on dispute resolution. That is why identification of risks facilitates early problem solving, and improves the outcome of potential business transactions, while prudent interpretation of information arms a client in preparation for future dealings.



Dentons advised Better Energy A/S and NEFCO on Ukraine solar park

ANK advised port operator of Odessa Port

Asters advised EBRD on up to USD 3.86 million financing to Energoresurs-Invest

DLA Piper advised Atlantic Agro Holdings and DUI Holding


Tesla shareholders filed lawsuit against Elon Musk

RF authorities paid multi-million compensation to Alexei Navalny

A bank may not accrue interest on a loan after default event

Paul Manafort found guilty on eight counts

Ukraine filed complaint against WTO decision taken in favor of Russia


Use of social advertising for election campaigning

Bonds for local development funds proposed

Members of Parliament propose regulation of electronic cigarettes market

Law digest

Family farms encouraged

Prevention of illegal land grabbing in Ukraine

Changed procedure of information disclosure regarding applications for marks for goods and services

New US package of sanctions against Russia made public


Natural Resources

Russia no longer recognizes Ukrainian extraction licenses issued for Crimea


Google to declassify data about buyers of political advertising


AMCU examines large concentration in e-commerce market

AMCU imposed fine on group of pharmaceutical companies for anticompetitive concerted practice

International Monitoring

New FATF statement: among the countries with strategic flaws there is only one European country

apital Markets

Ukraine came to international capital market with private placing

Banking & Finance

DGF launches website called Lease of banks' property

Public Procurement

ProZorro systems integration into medicines procurement

Chamber News

AmCham Ukraine Members met Andriy Kobolyev, CEO of Naftogaz of Ukraine

The energy business community, united by the American Chamber of Commerce in Ukraine, met withAndriy Kobolyev, Chief Executive Officer of Naftogaz of Ukraine. The discussion was devoted to the current status of implementation of reforms in the natural gas market.

Cover Story

Powerful Combination

The corporate security service is gaining momentum in our country as a standalone practice. It has obvious differences from the conventional offering as it is situated at the intersection of different disciplines, including financial, IT and cyber-security, corporate governance, compliance, criminal defense, GR. The risky areas formulate requirements for a comprehensive solution of an array of security factors. Sergey Pogrebnoy and Sergiy Smirnov, partners at Sayenko Kharenko, gave us their vision of a powerful combination to ensure business security.


Ukrainian Real Estate and Construction Sector: Reforms on the Go


As real estate plays a sufficient role in Ukraine's economy, the legislation regulating it is being developed to create an enabling and transparent market and sound legal environment for attracting investments in real estate and construction. Over the last few months, there have been several legislative updates aimed at filling legislative grey areas and improving the investment climate in Ukraine. Among other things, this includes a number of considerable steps made by the Parliament of Ukraine and the Ministry of Regional Development, Construction and Housing and Utility Services in Ukraine (Ministry), as described below.


Legal Digest

Despite the hot summer season a portion of legislative novelties arrived from Parliament and posed lots of questions for consideration. The UJBL team continues to be at the forefront of news and developments. Our expert panel shares its views on the long-anticipated Draft No. 8336, which establishes responsibility for putting pressure on an expert, laws of Ukraine facilitating attraction of foreign investments and encouraging establishment and operation of family farms; Draft Law No. 8601-1 which sets rules for regulating the electronic cigarettes market and Draft No. 8616, which regulates dissemination of social advertising on television and radio; changes in the procedure for disclosure of information on applications for marks for goods and services and others.

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