Category: Ukraine

  • Ilyashev & Partners Successful for Lifelong Meditech Private Limited in Anti-Dumping Investigation

    Ilyashev & Partners Successful for Lifelong Meditech Private Limited in Anti-Dumping Investigation

    Ilyashev & Partners has successfully represented Lifelong Meditech Private Limited, an Indian manufacturer of sterile hypodermic single-use syringes, in the anti-dumping investigation on imports into Ukraine of syringes originating from the Republic of India, the Republic of Turkey, and the People’s Republic of China.

    The decision to initiate an anti-dumping investigation was made by the Interdepartmental Commission on International Trade on October 25, 2017 following complaints lodged by Hemoplast PJSC and Tyumen-Mediko-Smila Private JSC.

    Ilyashev & Partners reports that on April 17, 2019 the Commission declared that, in taking account the interests of both the Indian producer and Ukrainian consumers, it was abstaining from applying measures to the products of Lifelong Meditech Private Limited. Ilyashev & Partners Partner Olena Omelchenko, who led the firm’s team on the matter, described the decision as “an extremely rare result for an anti-dumping investigation.” 

    Lifelong Meditech Private Limited was founded in 2005 and is part of the diversified Lifelong group, which produces sterile hypodermic single-use syringes, sterile hypodermic single-use needles, and infusion sets. The company markets its products under the Safeway and Lifelong brands. 

  • Eterna Law Successful for Soufflet Negoce in Enforcement Proceedings Before the Supreme Court of Ukraine

    Eterna Law Successful for Soufflet Negoce in Enforcement Proceedings Before the Supreme Court of Ukraine

    Eterna Law has persuaded the Supreme Court of Ukraine to recognize and enforce a disclosure order issued by the High Court of Justice of England and Wales on behalf of client Soufflet Negoce SA.

    Eterna Law describes the ruling as “a landmark court decision which establishes a new practice regarding the recognition and enforcement of foreign judgments in Ukraine.”

    The Supreme Court approved the ruling of the court of appeal that the enforcement of a foreign judgment against a person who was not a formal party to foreign court proceedings is permissible. The court concurred that the defendant as the officer of the original debtor company was bound by the disclosure order by way of having been named in the penal notice. 

    The team of Eterna Law was led by Partner Eugene Blinov with support of Senior Associate Roman Protsyshyn.

  • K&L Gates, Integrites, and Redcliffe Partners Advise on Segment 2 of Ukraine’s Syvash Wind Power Project

    K&L Gates, Integrites, and Redcliffe Partners Advise on Segment 2 of Ukraine’s Syvash Wind Power Project

    K&L Gates and Integrites have advised NBT on the financing documents for Segment 2 of Ukraine’s Syvash Wind Power Project, with commitments of an additional EUR 107.6 million of further senior debt coming from the Black Sea Trade and Development Bank (EUR 30 million), Proparco (approximately EUR 42 million), Finnfund and IFU (EUR 15 million each), and the Nordic Environment Finance Corporation (EUR 5 million). The lenders were advised on Ukrainian law by Redcliffe Partners and on English law by Clifford Chance.

    Other legal advisors included Advokatfirman Torngren Magnell KB (borrower’s Swedish legal adviser); BCTG Avocats (Total Eren’s French Legal Advisor); Eversheds Sutherland (Algihaz’ legal advisor); Gernandt & Danielsson Advokatbyra KB (Total Eren’s Swedish legal advisor); Kanter Advokatbyra KB (lenders’ Swedish legal adviser); and Wikborg Rein Advokatfirma AS (sponsors’ Norwegian legal adviser).

    As reported previously, earlier this year K&L Gates and Integrites advised NBT on the acquisition of the project company SyvashEnergoProm LLC and both NBT and Total Eren as sponsors on the development, construction, and financing of the power generation facility and new substation.

    According to a joint Total Eren and NBT press release, “at its full capacity, Syvash represents a EUR 380 million total investment. Syvash will consist of 63 wind turbines and is located on 1,300 hectares of land in the southern Kherson region of Ukraine. Once built, it is expected to become the country’s largest renewable energy project. It is the first international Financial Close ever achieved for a wind farm of that scale in Ukraine. The project was financed in two phases, for a total loan amount reaching EUR 262.6 million: A loan of up to EUR 155 million had been raised in January for the construction of the first 133 MW phase from a consortium led by the EBRD.”

    In addition, the press release asserts, “the electricity generated from Syvash will be sold to state-owned company Energorynok – Ukraine’s wholesale electricity market operator. Once the full project is completed, it will have a planned production of 850 GWh per year, hence generating enough electricity to meet the needs of approximately 100,000 households. It is expected to reduce CO2 emissions by 470,000 tonnes per year, hence creating a positive impact on the environment. The Engineering, Procurement and Construction contract has been signed with PowerChina, one of the largest power plant construction companies worldwide, and Nordex Group, a leading producer of onshore wind turbines. The Syvash wind farm will bring economic development and significant tax 2 revenues to the Kherson region and will have a lasting economic impact even after its construction is completed.”

    K&L Gates’s London-based team was led by Partner Alex Blomfield and included Partner Mayank Gupta (who has recently moved to Hamilton Locke in Australia), Senior Associate Joshua Spry, Associates Francis Iyayi and Peter O’Donnell, and Trainee Solicitor Francesca Norman.

    The Integrites team was led by Managing Partner Oleksiy Feliv and Senior Associate Olena Savchuk.

    The Redcliffe Partners team was led by Partner Olexiy Soshenko and included Senior Associate Evgeniy Vazhynskiy and Junior Associate Eduard Olentsevych.

  • Elena Volyanskaya Makes Partner at LCF

    Elena Volyanskaya Makes Partner at LCF

    Elena Volyanskaya, who heads the Bankruptcy and Restructuring practice at Ukraine’s LCF Law Group, has been promoted to Partner at the firm.

    Volyanskaya, who has been head of Bankruptcy and Restructuring at LCF for the past ten years, specializes in financial banking disputes, bankruptcy and restructuring, and tax litigation, with a focus on the energy and natural resources, banking, and finance practice areas.

    Volyanskaya graduated from the Yaroslav Mudri National Law University and started her career as an Associate with the Ukranian State Innovation Company, later moving to an Associate position with the UFG Commercial Bank. Before joining the LCF Law Group, she also served as the Director of the Law departments at IBCH Ukraine and the Rest-Company.

  • Tkachuk and Krasovskiy Jump from Jeantet to Integrites

    Tkachuk and Krasovskiy Jump from Jeantet to Integrites

    Former Jeantet Partners Illya Tkachuk and Igor Krasovskiy have joined Integrites in Kyiv, bringing the total number of partners to 19 across the firm’s six offices.

    Both Tkachuk and Krasovskiy joined Jeantet in November 2015 with the rest of the Kyiv office of Gide Loyrette Nouel (as reported by CEE Legal Matters on November 3, 2015), both after working for a little more than seven years at Gide, and both made Partner in the spring of 2017 (as reported by CEE Legal Matters on May 2, 2017). Before Gide, Tkachuk spent two years at Asters (and legacy Shevchenko Didkovskiy & Partners), while Krasovskiy spent three years in-house at CB Khreschatyk. 

    Tkachuk graduated from the Kyiv University of Law in 2007, and Krasovskiy graduated from the Jaroslav the Wise Law Academy of Ukraine in Kharkiv in 2005.

  • Why the Registration of Marriage in Ukraine is Better Than in…

    Everything is quite simple. Marriage registration between foreigners in Ukraine is a legal, easy, fast and fairly cheap procedure.

    The accent. This “legal advice” is more useful for those couples, in which both are foreigners and both do not intend to obtain a residence permit or citizenship in Ukraine as a result of such a marriage.

    The reasons. In practice, more and more foreigners are registering marriage in Ukraine for very noble reasons, for example, with the goal of adopting a child in Ukraine.

    According to the provisions of Articles 211, 212 of the Family Code of Ukraine, a capable person must be at least twenty-one years old to become the adopter of a child, except when the adopter is a relative of the child. A foreigner must be married to become the adopter of a child, except when the foreigner is a relative of the child.

    Another fairly common reason is the intention of the couple to use the services of surrogate motherhood after having their marriage registered. Although, only few are aware that in Ukraine, unlike in many other countries, in particular, Germany, France, Italy, Belgium, India, the surrogate motherhood is allowed. And, in view of that, the Ukrainian market for assisted reproductive technology is highly developed.

    As stipulated in Article 123 of the Family Code of Ukraine, the spouses, who conceived a child with the help of assisted reproductive technologies, are the parents of that child, not the woman, who became a surrogate mother.

    Also, the reason for the marriage registration in Ukraine is a banal desire to avoid various restrictions, for example, age-related requirements, lengthy procedures for collecting documents and obtaining official permits, as well as the need to observe special conditions for marriage in the jurisdictions of the future spouses’ place of residence.

    The situation in other countries. In order to officially register the marriage of a couple, in which one or both are non-residents of the country of marriage registration, for example, in France, you should first live in the country for at least three months and, then, face very undemocratic prices for wedding services. In a number of countries, for example, Germany, Great Britain, you need to obtain a “bride / groom” visa, having waited for it approximately 2-6 months (one should bear in mind the probability of not obtaining such a visa), and to speak the state language. 

    As for the marriage registration procedure in the CIS countries, its efficiency also leaves much to be desired, since the marriage registration takes place, as a rule, not earlier than one month after the submission of the appropriate application by the couple to the state bodies.

    Furthermore, to register a marriage in Spain, you should have a bank account and real estate in this country. I will not even mention the countries, whose legal system is based on Sharia law, where the traditions of marriage and the preceding rites have their own specific characteristics.

    The choice is yours, but in this case, Ukraine is a good choice.

    The rights of foreigners and stateless persons in Ukraine. Foreigners and stateless persons have the same rights and freedoms as nationals of Ukraine have, unless otherwise provided by the Constitution, laws of Ukraine, as well as international treaties, to which Ukraine is a party, as stated in Article 2 of the Law of Ukraine “On the legal status of foreigners and stateless persons”. Article 18 of this law establishes that foreigners and stateless persons have equal rights and obligations with nationals of Ukraine in marriage and family relations.

    The conditions, the observance of which is necessary for the registration of marriage in Ukraine. According to the general provisions of the Family Code of Ukraine, the marriage age in Ukraine for women and men is set at 18 years. Upon the request of a person, who has reached the age of 16, he/she may be granted the right to marry, if it is determined that such a marriage meets his/her interests. Other conditions that must be met for state registration of a marriage are 1) monogamy, that is, a woman and a man have the right to remarry only after having terminated their previous marriages; 2) persons, who are relatives of a direct line of kinship, siblings, cousins, aunt, uncle and nephew, niece, adoptive parent and adopted child cannot be married to each other. Generally speaking, these are the all conditions.

    The procedure for registration of marriage in Ukraine. In order to register a marriage in Ukraine, a woman and a man must submit an application to any state registration authority of their choice or to another institution that provides public services.

    The couple should additionally provide the following documents, certified in the prescribed manner and translated into Ukrainian: the first page of the passport; the document confirming the dissolution of the previous marriage (if any). In this case, a copy of the above documents certified by a Ukrainian notary shall be deemed as documents, certified in the prescribed manner, except when legalization (apostilization) of a foreign document is required (for nationals of countries, which are not parties to the Minsk Convention on Legal Assistance and Legal Relations in Civil, Family and Criminal cases of 1993 or to the Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents of 1961).

    After the authorized body accepts the documents, they are transferred to the migration service to check the legality of the foreigner’s stay on the territory of Ukraine. The duration of such a verification is on average 5 working days, and sometimes even less. Upon obtaining the results of the verification, the marriage may be registered and, then, attested by a marriage certificate.

    Thus, you do not have to live in Ukraine for a certain period of time before you may apply for registration of marriage, there is no need to obtain visas, other official permits or to have real estate in Ukraine and so on.

    The registration procedure, including the preparation and submission of documents, the migration verification and marriage registration, may take you about 10 working days. And in this, you will encounter no high costs, no bureaucratic system or paperwork.

    By Daryna Demchuk, Associate Integrites

  • Sayenko Kharenko Advises VR Capital on Acquisition of Stake in Ukrainian Solar Park Projects

    Sayenko Kharenko Advises VR Capital on Acquisition of Stake in Ukrainian Solar Park Projects

    Sayenko Kharenko has advised VR Capital on the acquisition of 50% of shares in Nicken Holdings LTD from Investment Capital Ukraine. Avellum reportedly provided transactional support to Investment Capital Ukraine on the sale.

    Nicken Holdings is the owner of 11 Ukrainian project companies developing 11 solar power plants with an aggregate capacity of approximately 127 megawatts in the Mykolaiv region of the southern half of Ukraine.

    VR Capital is an alternative asset manager focused on distressed securities and event-driven and special situations investments oriented towards emerging markets, including Ukraine.

    Investment Capital Ukraine is an asset management, private equity, and investment advisory firm specializing in the emerging markets of Central and Eastern Europe.

    Sayenko Kharenko’s team included Partner Oleksandr Nikolaichyk and Maksym Nazarenko, Counsel Igor Lozenko, Senior Associate Mykhailo Grynyshyn and Tymur Enkhbaiar, Associates Oksana Daskaliuk, Dasha Dashkevych, Igor Pomaz, and Tetiana Dyvak, and Junior Associates Sviatoslav Kozak and Zarina Khalimon.

    Editor’s Note: After this article was published Avellum announced that its team was led by Partner Yuriy Nechayev, supported by Counsel Maksym Maksymenko and Associates Dmytro Symbiryov, Daryna Mykhailenko, and Vladyslav Aleksandrov. 

    Avellum advised on the transaction and on financing for the deal.  

  • Sayenko Kharenko Advises VR Capital on JV with Volterra Energy to Develop Solar Power Plants in Ukraine

    Sayenko Kharenko Advises VR Capital on JV with Volterra Energy to Develop Solar Power Plants in Ukraine

    Sayenko Kharenko has advised VR Capital on the establishment of a joint venture with the Volterra Energy Group to develop solar power plant projects in Ukraine. Kinstellar reportedly assisted the Voltera Energy Group in drafting relevant transaction documents.

    VR Capital is an alternative asset manager focused on distressed securities and event-driven and special situation investments, oriented towards emerging markets, including Ukraine.

    The Volterra Energy Group is a renewable energy development and investment management group focusing on solar, wind, small hydro, energy storage, and waste-to-energy technologies.

    Sayenko Kharenko’s team included Partners Oleksandr Nikolaichyk and Maksym Nazarenko, Counsel Igor Lozenko Senior Associate Mykhailo Grynyshyn and Tymur Enkhbaiar, Associate Oksana Daskaliuk and Igor Pomaz, and Junior Associates Sviatoslav Kozak and Zarina Khalimon.

  • Baker McKenzie Advises Septa Communications on Sale to Perion

    Baker McKenzie Advises Septa Communications on Sale to Perion

    Baker McKenzie Kyiv has advised Septa Communications on its sale to Israel-based Perion Network Ltd.

    The total amount of the deal is USD 3.75 million, which consists of a cash payment at closing and earn-outs that are to be paid within two years provided the startup reaches its performance goals.

    Perion Network is an Israeli ad-tech company listed on NASDAQ and the Tel Aviv Stock Exchange. The company delivers data-driven online advertising and search solutions to brands and publishers.

    According to Perion, the acquisition was made to complement Undertone, a “synchronized digital branding” platform that the Israeli company bought in 2015 for USD 180 million.

    Septa Communications is an IT development company, which applies AI-driven technologies to marketing. Trading as Captain Growth, the company is a Ukrainian AI startup that is active in artificial intelligence in various advertising channels. Captain Growth was launched in 2017 as a platform that analyzes the performance of Facebook and Google AdWords ads and provides the user with recommendations on how to improve the efficiency of a campaign. 

    Dmytro Bilash and Dmytro Plieshakov, Captain Growth Co-founders, were represented by Baker McKenzie’s Senior Associate Andrii Finogin.

    Baker McKenzie did not reply to our inquiries about the deal

  • Legal Alert: The AMCU`s Recommendations Regarding the Application of Discounts in the Distribution of Medical Products

    On February 21, 2019, the Antimonopoly Committee of Ukraine (hereinafter – the “AMCU”) adopted Recommendations on the Application of Competition Legislation in Vertical Practices on Supply and Marketing of Medicines (hereinafter – “Recommendations”).

    Recommendations determine the specificities of the application of competition legislation, in particular, on the use of discounts, bonuses, and credit notes in the commercial relationship between the producer (the purchaser) and the distributor (the buyer) on the market of medical products. 

    The AMCU observed that the use of such discounts is a common commercial practice and can have pro-competitive effects. 

    However, discounts may also have anticompetitive effects, and such cases are demonstrated below:

    Discounts can be characterized as anticompetitive if:

    • Discounts are considered as a mechanism to avoid pricing regulation and overstatement of prices for public procurements;
    • Discounts restrict access to buyers and increase costs of competitors;
    • Discounts set prices that are below production costs and the sale of the products;
    • Discounts restrict access to key resources (e.g. raw materials);
    • Discounts may lead to an increase in the supplier’s market power by giving in one list such discounts for exclusive drugs as well as for substitutable drugs;
    • Discounts have the effect of binding a wider range of products compared to discounts for each drug separately.
    • According to the Recommendations, mixing several types of discounts simultaneously and applying considerable time periods to achieve discounts increase the risks of an anticompetitive effect.

    Moreover, in the Recommendations, the AMCU also focuses on the reporting of distributors. 

    Distributors reporting to producers may be a cause of additional antitrust risks if: 1) such reporting to producers is intended to establish control over markets; 2) producers and distributors exchange information regarding price policy; 3) the producer provides the distributor with a discount simply for the fact of reporting.

    In order to prevent violations of competition law, in the Recommendations, the AMCU advises: 1) to set quantitative targets of sales rather than financial targets for obtaining discounts; 2) not to apply retrospective discounts during the sale of medical products through public procurements; 3) to avoid mixing unique and non-unique drugs in one list for providing a discount; 4) to establish marketing policies separately for unique drugs and for drugs that have substitutes; 5) to avoid conditions under which a discount on the purchase of one drug depends on the purchase of another. 

    N.B. in the Recommendations, the AMCU does not specify when the use of retrospective discounts (credits note) is allowable. At the same time, retrospective discounts per se are not prohibited by European law, especially if they do not have a negative impact on competition in the relevant markets.

    By Serhiy Shershun, Counsel Integrites