New Ukrainian Close-out Netting Rules In Context: ISDA Master Agreement

Not so long ago, the Ukrainian Parliament has finally made a successful attempt to implement the derivatives reform in Ukraine. The work on the draft law dates back more than ten years and includes several iterations in the Parliament. No wonder there has been much celebration among the stakeholders and market participants. Alerts and press-releases have been sent around saying that Ukrainian law is now familiar with close-out netting and inviting those interested to take a closer look. This article aims to do just that - take a closer look at how the new statutory provisions on close-out netting will operate in the specific context of the 2002 ISDA Master Agreement.

Sayenko Kharenko has been a part of the working group on the draft law introducing the reform almost since the beginning of the work. Because we have been deeply involved for a while, I thought that it would be useful to give a practical perspective on the information that is currently out there and