The Legal 500

On 13 April 2012 the new Regulation on Consolidation and Subdivision of Shares in Joint Stock Companies (the "New Regulation") adopted on 6 March 2012 by the Ukrainian National Commission on Securities and Stock Market (the "Commission") became effective and replaced the old Regulation on Registration of Shares in the Course of Change of Nominal Value and Quantity of Shares without Change of the Share Capital Amount approved by the Commission on 14 September 2000.

From May 2011 and until January 2012, as a result of unification effort against inconsistent practice of the lower courts,the Supreme Court of Ukraine (the “Supreme Court”) re-examined inconsistent rulings of Ukrainian cassation courts on disputes arising out of, inter alia, mortgage and suretyship agreements and made a number of important decisions providing guidance on application of the relevant legislation in similar cases.

On 6 February 2012 the Cabinet of Ministers of Ukraine amended its Resolutions No. 1297 and No. 1298, dated 30 November 2011 (the "PSA Resolutions"), which determine tender terms for conclusion of production sharing agreements ("PSA") on exploration and production of hydrocarbons, in particular non-conventional gas, in Oles'ka and Yuzivs'ka subsoil blocks.

On 21 October 2011 the Parliament of Ukraine amended the Law of Ukraine "On Production Sharing Agreements" as to the list of subsoil resources plots. The amendment was signed by the President on 11 November 2011 and shall come into force upon official publication.

We set out below most recent changes in Ukrainian corporate law:

• legislation on reorganization of legal entities was modified;
  

•  Ukrainian SEC explained the standard of compliance with the duty of public companies to have their shares admitted to listing on a stock exchange;

• Ukrainian SEC provided more details on the functioning of joint stock companies; and

• On-line access to the Unified State Register of Legal Entities and Individual Entrepreneurs was launched following the Order of the Ministry of Justice of Ukraine.

On 22 September 2011 the Parliament of Ukraine adopted the Law amending Civil Procedural Code concerning granting interim measures during recognition and enforcement of a foreign court judgment.

Recent developments

On 1 October 2011 important changes to the VAT treatment of retroactive discounts introduced by Federal Law No. 245-FZ dated 19 July 2011 as part of a wider package of VAT amendments will come into effect. The new rules resolve the long-standing uncertainty as to the VAT treatment of retroactive discounts.

And award in Ukraine

Issue of considerable interest
Ukrainian courts annually consider over 70 applications seeking recognition and enforcement of foreign court decision and award.

On 30 September 2011 the Antimonopoly Committee of Ukraine (the AMC) published draft Regulation detailing rules and procedures applicable to leniency applications in cartel cases (the Regulation). Beyond all doubt, the document is an important step towards better prevention, detection, and fighting cartels.

Ukrainian government further simplifies corporate registration procedures and eases access to basic corporate information on legal entities by taking the Unified State Register of Legal Entities and Individual Entrepreneurs (the “State Register”) and registration procedures on-line.

Real Estate & Construction

Banking & Finance

Corporate Law / M&A

Antitrust & Competition

The globalization in the modern world, supranational and international financial and political formations and integration of world economies into single regional and cross-border markets have made it necessary to establish a single legal framework that would unify the regulatory control of combined markets and free movement of capital. One of the main areas in the development of combined markets regulation is antitrust regulation.

companies more complicated  

The Order of the Antimonopoly Committee dd. July13, 2011, registered with the Ministry of Justice on August 5, amends the Concentration Regulations governing the procedure for submitting documents and obtaining concentration clearances.

On 1 July 2011, the new Law of Ukraine “On the Prevention of and Counteraction against Corrupt Practices in Ukraine” (the “New Law”) entered into force (except for certain provisions concerning income declaration by state officials, which will become effective on 1 January 2012). The New Law sets forth the main principles for combating corruption. Also, certain amendments to the Criminal, Administrative Violations, and Criminal Procedural Codes of Ukraine entered into effect at the same time as the New Law.

Any joint stock company, if it has at least two independent shareholders, is a center of interest of several parties being in diverse relations. The interest of each of the "co-owners" certainly has its vector. At that rate, the appearance of conflict situation is just a matter of time. The greater is the difference in the objectives of interests the less time is needed.

Until recently it was widely held that human rights had little or no relevance to international arbitration. Arbitration was regarded as being used by international business to resolve disputes in cross-border transactions, whereas issues of human rights and the related legal mechanisms were considered to be limited to matters relating directly to the wellbeing of an individual.

On 13 April 2011 the National Bank of Ukraine (the "NBU") approved Resolution No. 111 "On Amendments to Certain Regulations of the National Bank of Ukraine" ("Resolution No. 111"), which is to amend, inter alia, the Regulation on the Procedure and Terms of Foreign Currency Trades, approved by the NBU Resolution No. 281 dated 10 August 2005.

The other days, A. Ivanov, the Chairman of the Supreme Commercial Court of the Russian Federation, proposed to amend the Russian legislation so that to implement the doctrine of unveiling the corporate mask in the Russian law .

Law of Ukraine No. 3038-VI "On Regulation of City Development Activity", came into force today, 12 March 2011 (henceforth the "Law").

(1) Changes to Currency Control Rules (2) Changes to Foreign Investment Procedures (3) Simplification of Dividends Remittance Procedure

The Law of Ukraine “On Personal Data Protection” (“Law”) comes into effect on 1 January 2011. The Law contains a number of important provisions regarding the protection of personal data (“PD”) being processed and concerns both individuals and legal entities. The Law provides general and specific requirements to companies processing their personal databases (“PDB”).

The President of Ukraine has signed the Law On Public Private Partnership (PPP Law) which was adopted by the Parliament of Ukraine on July 1, 2010. The law enters into force in three months after its official publication.

AstapovLawyers chosen as 'Dispute Resolution Advisory Firm of the Year in Ukraine’ by Corporate International Magazine

On 20 October 2009, the Ukrainian Parliament approved in final reading the Law on the Moratorium on the Increase of Prices for Pharmaceuticals and Medical Products.

Real estate & Construction - Agriculture - Energy (Renewable energy) - Retail and Leisure - Banks and Financial Institutions - Agriculture - Corporate Law / M&A

This is a general guide for companies operating or considering investments in Ukraine. It gives an overview of key aspects of the Ukranian legal system and the regulation of business activities. 

On 15 May 2009, the new “Regulation on the Issuance, Extension, and Annulment of Work Permits for Foreigners and Stateless Persons” will take effect. The Regulation has introduced a number of other obligations for employers and foreigners working in Ukraine and contains many other nuances that will impact upon the continued ability of foreign citizens to lawfully work or provide services in Ukraine. The Regulation completely abolishes and replaces the earlier regulation for the issuance of Ukrainian work permits and significantly expands the obligations of foreigners and their Ukrainian employers and clients.

LEGISLATION NEWS

Conducting Business in Ukraine has been prepared as a general guide for companies operating in or considering investments into Ukraine. It is intended to present an overview of the key aspects of the Ukrainian legal system and the regulation of the business activities in this country. Please click on the link below to read the guide.

Conducting Business in Ukraine 2008