#10 October 2020

In focus – Investment Regulation

Ukraine has been struggling to attract foreign investors for decades. Dozens of investment barrier reports, commitments within the Association Agreement and bilateral treaties, truly advanced laws have, in recent years, only slightly provided a meaningful environment to meet the  preferences of investors.

Expert Opinion

Stimulation of Foreign Investment in Ukraine

by Nina Bets

The national environment of foreign investment and other economic activities in Ukraine is established and governed by Ukrainian legislation. However, foreign investors have an opportunity to have their interests protected in the event of violation of their rights by resorting to the use of international treaties and conventions signed and ratified by Ukraine.

In Re

New Model of Investor-State Dispute Settlement under the EU Approach

by Olesia Kryvetska

In 2014, the European Commission concluded its negotiations with the Government of Canada with respect to the Comprehensive Economic and Trade Agreement, which contains a separate Investment Chapter and is known as a first treaty to implement a new approach by the EU to resolving investor-state disputes, referred to as the Investment Court System1. The ICS implies a set of procedural and substantive rules that provide for establishment of a permanent dispute settlement institution consisting of the Tribunal of First Instance and the Appeal Tribunal.

Investing in Ukraine under 2020 Tax Reform

by Mykhailo Razuvaiev

The Ukrainian tax legal framework has changed drastically over the last six months. In addition to significant changes to existing tax rules and procedures, completely new tax concepts have been introduced. These include the concepts of Controlled Foreign Companies and constructive dividends. Apart from the influence on purely Ukrainian businesses, the new rules and amendments will have an impact on investing in Ukraine and affect foreign businesses operating in Ukraine or dealing with Ukrainian counterparties.



Baker McKenzie advised Glencore Agriculture Limited

AVELLUM advised on UkraineТs sovereign financing in excess of USD 1.5 billion

Sayenko Kharenko advised on USD 329 million Eurobond tap issue by Ukraine

Kinstellar advised Turkey Wealth Fund

Baker McKenzie advised State Property Fund of Ukraine on privatization of Dnipro Hotel

Sayenko Kharenko advised ADM, Bunge, Cargill, COFCO, Louis Dreyfus Company and Glencore Agriculture


US court froze execution of Trump order on blocking WeChat and TikTok

EU court finally refused to lift sanctions from Rosneft

Ukrhimtransamiak finally wins in tariff dispute with Russian giant

AMCU wins appeal against Tedis, meaning latter will pay remaining UAH 130 million fine

Supreme Court suspended execution of decision to collect USD 350 million from PrivatBank


Rada adopted in first reading draft law on cutting VAT for agricultural sector to 14%

Rada upheld establishment of Bureau of Economic Security in first reading

Tax reform

Law digest

President signed law on state portfolio guarantees

Moratorium on debt collection extended

New rules to regulate electronic money market

Cabinet of Ministers adopted Priority Action Plan



Microsoft to acquire Fallout and Skyrim game developer for USD 7.5 billion

Nvidia acquired Arm processor developer for USD 40 billion

Novus to acquire Billa supermarket chain


Spotify filed claim on non-competitive actions against Apple

International Monitoring

World Bank suspends publication of Doing Business rating

MoodyТs expects G20 countries GDP to fall by 4.6% in 2020 and rise by 5.3% in the next one

Trade Policy

USA and EU agreed to reduce duties


Airbus presented zero carbon dioxide emission aircraft concept

Chamber news

AmCham Ukraine Leadership participated in meetings of the National Council on Anticorruption Policy and the National Reforms Council

On 28 September the President of the American Chamber of Commerce in Ukraine, Andy Hunder, took part in the meeting of the National Council on Anticorruption Policy under the President of Ukraine Volodymyr Zelensky.

Cover Story

A Huge Step Forward

Broad-based reforms in the strategic sectors of the Ukrainian economy are facing new issues, and demonstrated vital needs for transparent privatization and efficient investment protection. The announcement made by the countryТs new leadership on the new course on preparing large state assets for privatization has been interfered with recently by the global pandemic. ItТs certainly time to move from declared priorities to real, concrete steps forward, as Ukraine has already shown a number of successful privatization cases. Serhiy Piontkovsky, managing partner of Baker McKenzie Ц Kyiv, head of the energy, chemicals, mining and infrastructure and real estate practice groups, who advised almost all sound privatizations in our country, explained their importance in the pursuit of new success stories.

Global Legal Update

Investment in Poland Ч Why is it Still an Attractive Market in 2021?

Andrii Romanchuk

Poland is a great destination for investment and business development, as confirmed by huge number of studies internal and external. The latest Global Best to Invest ranking (2019) indicates that Poland is in fifth place, after China, Germany, GB and India. The Financial Times report shows similar results, namely that Poland also ranks fifth in terms of the value of new investments.


Civil Liability of BanksТ Shareholders and Related Parties: Practical Considerations

by Andrii Chornous

In the period of 2014-2016 the National Bank of Ukraine carried out a Уgreat bank cleansingФ, which resulted in the withdrawal of 103 banks from the Ukrainian banking market. Since the assets of some of the insolvent and liquidated banks were insufficient to cover all debts, claims against the related parties of banks and shareholders whose actions contributed to insolvency are regularly considered by those creditors that have suffered losses. Pursuant to the data published by the Deposit Guarantee Fund of Ukraine (the УDGFФ), 49†banks in Ukraine remained in the process of liquidation as of 8 September 2020. Consequently, lawsuits on collection of damages against the related parties of banks may remain an effective mechanism for creditors attempting to recover their losses.


Legal Digest

As the new political season began in the last days of August, September appeared to be rich in new legislative initiatives and for continuing work on draft laws from the previous parliamentary session. Among those that definitely deserve attention are the widely discussed Draft Law On Bureau of Economic Security of Ukraine, several prospective drafts that promise amendments to trade remedies laws (Draft Laws No. 4132 and No. 4134) and a couple of possible amendments in the tax field. We asked the lawyers to share their expert opinions on these and other important legal matters.

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