Category: Ukraine

Avellum has acted as Ukrainian legal counsel to AGCO in connection with its successful application for merger control clearance from the Antimonopoly Committee of Ukraine for its EUR 310 million acquisition of Cimbria. Herbert Smith Freehills acted as global legal advisor to AGCO.

AGCO is a designer, manufacturer, and distributor of agricultural solutions, and it supports efficient farming through its full line of equipment and related services. AGCO products are sold through five core brands, Challenger®, Fendt®, GSI®, Massey Ferguson® and Valtra®, supported by Fuse® precision technologies and farm optimization services, all of which are distributed globally through a combination of approximately 3,000 independent dealers and distributors in more than 140 countries. Founded in 1990, AGCO is headquartered in Duluth, Georgia, in the United States.

Founded in 1947, Cimbria — which is headquartered in Thisted, Denmark — is a manufacturer of products and solutions for the processing, handling, and storage of seed and grain, including the development, manufacture, and installation of individual machines, customized systems, and complete turnkey plants, as well as project management and process control consulting. Cimbria sales are concentrated in Western Europe with growing exposure to Eastern Europe, Africa, and the Middle East. 

Avellum’s team was supervised by Managing Partner Mykola Stetsenko and Counsel Yuriy Nechayev, and was led by Associate Yaroslav Medvediev, supported by Associate Andriy Gumenchuk.

Integrites is reporting that on November 14, 2016, the General Meeting of Members of the Ukrainian Arbitration Association elected Integrites Partner Olena Perepelynska, the Head of the firm’s CIS Arbitration Practice) as its new President, succeeding outgoing UAA President Tatyana Slipachuk, Partner and Head of International Dispute Resolution at Sayenko Kharenko.

The President of the UAA is elected for a four-year term.

The Ukrainian Arbitration Association was founded in September 2012 by the initiative of the Ukrainian and foreign arbitration experts. The key goals of the UAA include, first of all, the promotion of Ukraine, and Kiev in particular, as the seat of arbitration, facilitation, and support of interest in international arbitration, extending knowledge and exchange of experience in cross-border dispute resolution, and enhancing cooperation and communications among international arbitration practitioners around the world.

“It was a real challenge to set professional arbitration association and to be its first president,” said Tatyana Slipachuk, in a statement released by Integrites. “I would like to thank all my colleagues in Ukraine and abroad who continuously support UAA, and I do believe that only a joint effort could be successful. Despite my decision not to run for a new term I will remain with the UAA and I will do my best to promote international arbitration in Ukraine and Ukrainian arbitration lawyers abroad.”  

New President Olena Perepelynska is one of the founding members of the Association and elected a member of the UAA Board both in 2012 and 2015. Throughout the past four years she was in charge of coordinating and implementing several UAA educational and legislative initiatives, including its annual Arbitration Schools, and for contributing to the creation of a draft law to improve the procedural legislation of Ukraine in support of arbitration, which currently awaits its first reading in the Ukrainian Parliament.

“It is an honor to be chosen by my colleagues to serve as the second UAA President,” commented Perepelynska. “It is my sincere belief that UAA plays a central role in the development and promotion of arbitration in Ukraine. I also believe that Ukraine can become a more arbitration-friendly jurisdiction by improving its arbitration legislation, implementing best international practices into Ukrainian arbitration, and educating different groups of Ukrainian lawyers, both for counsel’s and arbitrators’ work. I will work hard to continue the success that my predecessor has achieved.” 

Lavrynovych & Partners has announced the launch of a new Credit Debt Restructuring practice at the firm.

The new practice, which will be led by Olena Galiguzova, will combine legal and financial expertise. 

According to Lavrynovych & Partners, “from now, we will become an even more reliable partner for companies who need professional support in restructuring loans. Our team will provide independent financial expertise and represent clients before creditors to reduce the financial burden on businesses. We will also provide the service of transforming debt into capital and optimizing its structure, sell non-core assets, etc.”

The firm reports that Galiguzova has experience “in creating and developing the same direction for corporate clients, which she was leading for the past 5 years in UkrSibban” [and as] a Partner of the international financial group BNP Paribas. Prior to that, Ms. Galiguzova held senior positions in the banking sector and has thorough experience in project and structured financing of investment projects.”

Avellum has advised UniCredit Group (UCG) on Ukrainian law matters and Linklaters has advised UCG on English law matters in connection with the disposal of 99.9% shares in PJSC Ukrsotsbank in exchange for a 9.9% stake in ABH Holdings S.A.

As a result of this deal, UCG became a minority shareholder of ABH Holdings S.A., an investment holding company of the banking group of Alfa-Group, headquartered in Luxembourg.

Avellum describes PJSC Ukrsotsbank as “one of the largest multifunctional banks in Ukraine with the network of 237 retail branches,” and describes UCG as “a leading European commercial banking group with an international network spanning 50 markets.”

The Avellum team working under the supervision of Managing Partner Mykola Stetsenko was led by Counsel Yuriy Nechayev and included Associate Andriy Romanchuk. Additionally, Senior Associate Vadim Medvedev advised on tax law matters, Associate Yaroslav Medvediev advised on antitrust matters, and Associate Yuriy Zaremba advised on real estate and labour law matters.

The Linklaters team was led by Warsaw-based Partner Daniel Cousens and included London-based Associate Pavlos Kaimakliotis.

Eterna Law has announced its “P2P” program for law students, which the firm describes as a “first in Ukraine annual scholarship program for law students studying at Ukrainian universities.”

According to Eterna Law, two successful winners will receive a monthly scholarship and the “mentorship support” of one of the firm’s partners during the academic year. They will also receive the “unique possibility” of an internship and employment with the firm. The selection process will involve more than 350 students from the 4th-6th courses of five Ukrainian leading universities: Taras Shevchenko National University of Kyiv, Yaroslav Mudriy National Law University, Ivan Franko Lviv National University, Zaporizhzhya National University, and National University “Odessa Law Academy.”

The final stage of the competition will be last until November 10th, at which point two finalists will be announced by the firm.

Eterna Law claims to be “the only company in Ukraine that cooperates with all key legal faculties in the country,” and the firm reports that its lawyers “regularly carry out master classes and workshops for students.”

Vasil Kisil & Partners has successfully represented the MIIT telecommunication operator in a dispute related to the payment for telecommunication services (IP telephony).

MIIT provides Internet, telephony, analog and digital interactive television, collocation, and mail domain support services.

In this dispute, according to VKP, “all three levels of courts held that the telecommunication company’s claims relating to the payment for services were reasonable and thus recovered from the subscriber its debt, including penalties.” In doing so, according to a summary provided by the firm, “the courts did not accept the subscriber’s arguments … that it neither ordered nor consumed international telecommunication services to such an extent (international calls were made from the phone numbers assigned to such subscriber). Likewise, the courts dismissed an [argument] that there was unauthorized tampering with the equipment, since it is a subscriber’s responsibility to protect logins and passwords. Accordingly, it was the subscriber who bore all risks related to restricted information being used by third parties and all loss related thereto which could be inflicted either to it (as subscriber), the operator, or other persons. Thus,  unauthorized tampering with equipment is not a reason to release the subscriber from payment for the telecommunication services provided to it.”

“Telecom fraud (fraud involving the misuse of telecommunication services by tampering with telecommunication equipment) is quite a widespread phenomenon in the modern technology world,” said Vasil Kisil & Partners Counsel Oleg Kachmar. “Subscribers usually refuse to pay bills resulting from unauthorized tampering with their telecommunication equipment. However, the court practice in similar cases in Ukraine shows that the subscriber is obliged to pay for the services, though he or she is not prevented from recovering the damage caused by person guilty in unauthorized tampering.”

The VKP team consisted of Partner Alexander Borodkin, Counsel Oleg Kachmar, and Associate Yuriy Kolos.

Magnusson has announced that Oleksandr Liulkov has joined the firm with a team of five lawyers, including Partner Tetyana Proskurnya, and that he will be taking over as Managing Partner of the firm’s Kyiv office going forward.

Liulkov, who was with Magnusson when the firm launched its operations in Kiev back in 2013, now returns to the firm. He has also worked for Andreas Neocleous and Co., Magisters, and Deloitte, among others, and most recently conducted his own practice. He focuses on banking and finance, corporate and M&A, dispute resolution, and tax.

“I am very much looking forward to further development of Magnusson’s operations in Ukraine,” commented Liulkov. “Magnusson offers a unique platform for attracting business from the Baltic Sea Region countries to our country. We see positive signs of recovery on the Ukrainian market and will capitalize on this together with our colleagues in other offices.”

New Magnusson Partner Tetyana Proskurnya, who joins with Liulkov, has been practicing law for over 10 years and specializes in dispute resolution, banking and finance, real estate, construction, securities, corporate and M&A. According to Magnusson, “she has extensive experience in advising on banking and finance, cross-border debt and equity transactions, restructurings, trade, and production.”

“We warmly welcome Oleksandr and his team on board,” stated Senior Partner Per Magnusson. “Ukraine is important for Magnusson and we advise a number of international companies operating on this market. Oleksandr has already been a part of our firm in the past and we are delighted that our clients will benefit again from his experience, knowledge and dedication.”

KPD Consulting Law Firm has supported Euroventures-Austria-CA-Management Gesellschaft m.b.H. — the real estate subsidiary of Bank Austria Group — in the execution of the Heritage Protection Agreement with respect to a historical office building from the early 20th century located in the heart of Kyiv.

The firm explained that the building owned by Euroventures-Austria-CA-Management Gesellschaft was constructed in 1911 and “falls into the category of so-called architectural monuments protected by the state as it represents the art-nouveau style in architecture.” By law, owners of such protected buildings must execute a “special agreement with Public Heritage Protection Authority in order to take obligations of keeping the building in good repair and of safe-keeping its initial appearance (facades) and even interiors.” The firm explained that before the preparation of the draft protection agreement between the authority and the owner there should be a special inspection of the asset identifying what parts of the building are to be restored in order to protect and maintain it properly.

KPD guided the landlord of the building in this special inspection, starting from the collection of all documents evidencing the exceptional historical status of the building and filing the application with the Public Heritage Protection Authority, through the inspection, and concluding with the drafting, negotiation, and execution of the Heritage Protection Agreement between the owner of the building and the Public Heritage Protection Authority.

“It was our true pleasure to handle this case related to the ‘pearl’ of Kiev architectural modern called also art nouveau,” commented KPD Partner Vladyslav Kysil, the Head of Real Estate and Construction at the firm. “Thanks to the Client this music in stone will sound for many years and will cause everyone walking down the street near Golden Gates — the Kiev Central Business District — to rejoice.” 

The KPD team on the matter was led by Kysil, assisted by Associate Mykhailo Semka.