Category: Ukraine

  • Vasil Kisil & Partners Advises Amtel Properties Stake Sale to EBRD

    Vasil Kisil & Partners has advised Amtel Properties on its minority stake sale to the European Bank for Reconstruction and Development (EBRD). The sale was announced on February 4, 2014.

    Vasil Kisil & Partners advised Amtel Properties on the confirmation of rights to shares of Ukrainian companies and to the land plots they use in their business. The firm’s lawyers also checked title documents and information from state registries and prepared the required legal opinions for the EBRD. The transaction value is estimated at USD 50 million. 

    The team working on the deal was led by Real Estate Partner Alexander Borodkin.

     

  • Vasil Kisil Advises UBG on Dobrobut Medical Centers Share Sale

    Vasil Kisil & Partners has announced that it has acted as legal advisor to the UBG Corporation in its February sale of shares in the Ukrainian Dobrobut medical clinic chain to Concorde Capital and Oleg Kalashnikov, the co-owner of the Luxoptica chain in Ukraine.

    The value and terms of the deal were not disclosed, and the firm expects the transaction to completely close by the end of 2014.

    According to a statement released by VKP, Dobrobut Medical Centres have been offering private medical services since 2001. The chain consists of eight clinics in Kiev and Donetsk which, combined, treat approximately 25 thousand patients a month.

    Vasil Kisil & Partners supported UBG in all stages of the transaction, including negotiations, drafting security documents (including the Share Purchase Agreement and Shareholders Agreement), advising on escrow arrangements for both parties to the transaction, and consulting on other issues related to the implementation of the deal. The VKP team was led by Partner Anna Babych and included Corporate/M&A Senior Associate Oksana Krasnokutska and Associates Yaroslav Lepko and Olena Malets. 

     

  • Sayenko Kharenko Advises on Capital Increase of Raiffeisen Bank

    Sayenko Kharenko has acted as Ukrainian legal counsel to the joint global coordinators Deutsche Bank, Raiffeisen Centrobank, and UBS on the recent EUR 2.78 billion capital increase of Raiffeisen Bank International AG (“RBI”).

    RBI placed 97,473,914 new shares at the price of EUR 28.50 per share, thereby increasing its capital by 50%. With proceeds from the issue amounting to EUR 2.78 billion, Sayenko Kharenko claims that the capital increase is the third largest of its kind on the Vienna Stock Exchange to date.

    RBI plans to use the proceeds from the issue to repay participation capital in the amount of EUR 2.5 billion (EUR 1.75 billion of which to the Republic of Austria).

    The Sayenko Kharenko team working on the transaction included Partner Nazar Chernyavsky, Senior Associate Anton Korobeynikov, and Associates Olena Krasna and Taras Shyb.

     

  • Dentons Advises EBRD on Loan to Ukraine’s PJSC Raiffeisen Bank Aval

    Dentons has acted as legal counsel to the European Bank for Reconstruction and Development on a USD 75 million loan to Ukraine’s PJSC Raiffeisen Bank Aval.

    The EBRD is the largest financial investor in Ukraine. As of January 1, 2014, the Bank had committed EUR 8.7 billion (USD 11.9 billion) through 321 projects in Ukraine.

    The Dentons team was led by Partners Zarko Iankov in London and Natalya Selyakova in Kiev, supported by Kiev Associate Nikolay Zhovner. 

     

  • Sayenko Kharenko Hires New Partner

    Sayenko Kharenko has announced that IP Partner Oleksandr Padalka has joined the firm with a team from rival Asters.

    Padalka specializes in advising clients on various IT, Corporate, Labor and Unfair Competition issues. In a statement released by Sayenko Kharenko, the firm announced that the new team will “boost its expertise in IP and IT … and enable it to offer cutting-edge solutions to clients in those areas, as well as facilitate day-to-day legal support of the largest Ukrainian and international companies in FMCG and IT sectors, pharmaceutical and food industries in the course of their operations in Ukraine.”

     

  • Integrites Advises Next Group on Advertising Agreements

    Integrites has advised Next Group regarding the execution and performance of various advertising agreements.

    Integrites’ team advised Next Group on risks connected with the performance of advertising agreements with leading media agencies and amended relevant documents to make them enforceable and compliant with local laws — including ensuring that mandatory local provisions applicable to foreign economic agreements were included to protect Next Group’s rights and interests .

    The Integrites team included Associates Yevgen Blok and Dmitriy Nyshpal, and was supervised by Partner Oleksandr Aleksyeyenko. 

     

  • Arzinger Rejects Russian Propaganda

    Arzinger Rejects Russian Propaganda

    Ukrainian Law Firm Releases Statement Rejecting Accusations Made in Russian Media. 

    Bondaryev

       

    Timur Bondaryev, Managing Partner, Arzinger

    “Reasonable people should be aware of the fact that the situation in Ukraine is the beginning of a global military conflict of third world war scale with unimaginable consequences for the world.” 

    These words come near the end of a bold and emotional two-page statement posted on the LinkedIn page of Ukraine’s Arzinger law firm and distributed by the firm’s partners to clients and contacts. The document — called an “Update” by the firm — is a point-by-point rejection of the stories presented in Russian media about purported threats to Russians living in Ukraine. According to the Arzinger partners, the suggestion that Russians living in Ukraine are in any danger is untrue, counter-factual, and in fact part of a deliberate propaganda war the Kremlin is waging to justify its own actions. 

    In an exclusive interview with CEE Legal Matters, Timur Bondaryev, the Managing Partner of Arzinger, explained that the firm’s partners “just decided that we have to bring the real situation to the world.” Bondaryev said that “we watch the Russian media, and what they were reporting was just incredible. Just lies, actually.”  He said that “everything that happened on Maidan [the Russian media] reported in their own way, so we created this document just to let our friends know that the situation is quite different.”

    Bondaryev has first-hand experience with the Russian experience in Ukraine, as he grew up in the Russian part of Ukraine, and his family spoke only Russian — never Ukrainian. But he dismissed any suggestion that Russian-speakers are being harassed or threatened. “I’m fine. My parents speak Russian, watch Russian TV, and it’s fine. Nobody’s being harassed. It’s just Russian propaganda.”

    Still, he has no doubt that the stories reported by Russian media are having the planned effect. “I’m really pissed off, because they seem to really believe what’s reported there. This Cold War, that everybody’s trying to undermine the Putins and the Russians. It’s really incredible. They’e intelligent people but they really believe what’s in the media.”

    Bondaryev admits that the firm has received a number of requests from Russian clients — some made fairly aggressively — that they take the document down or disavow it. But Bondaryev and his Partners are unmoved. “We’re not worried about losing business, we’re worried about avoiding a war.”

    And the firm has received a substantial amount of positive feedback since publishing and distributing the Update as well. Bondaryev explained that even many of the firm’s Russian clients wrote letters of support, and many told him that, “you know, we didn’t believe the Russian propaganda anyway, but it’s very good that you sent that message anyway.” Still, Bondaryev claims that “the main recipient of the message wasn’t Russians, it was the rest of the world.”

  • Sayenko Kharenko Victorious in Ukrainian Debt Collection Dispute

    Sayenko Kharenko has announced that it has successfully represented an unnamed Italian company in a USD 3.5 million debt collection dispute over an equipment supply contract. 

    The Commercial Court of the Vinnitsa region of Ukraine agreed with Sayenko Kharenko on the application of Italian law to the Contract, establishing the content of the rules of Italian law, pursuant to which the general limitation period is 10 years and fully satisfied the claim. According to the court’s judgment the defendant was ordered to pay the debt and to compensate the claimant for court fees. The Commercial Court of the Rivne region upheld the ruling of the Vinnitsa Commercial Court.

    Sayenko Kharenko’s team in the matter included Associate Olexander Droug and Counsel Olena Perepelynska. 

     

  • Asters Advises on Ukrainian Merger Control Aspects of USD 35 billion Omnicom and Publicis Merger

    Asters has provided legal advice to the Publicis Groupe and Omnicom Group advertising agencies on Ukrainian merger control law issues.

    The representation included obtaining merger clearance from the Ukrainian competition authority for the USD 35 billion merger between the two companies.

    The merger between the No. 2 and No.3 global advertising holding companies is expected to create a world leader in communications, advertising, marketing, and digital services, offering clients leading talent across disciplines and geographies. Asters describes the merger as “the largest strategic multinational merger between competitors announced in 2013,” and says that it has triggered merger control filings in 15 jurisdictions, including Ukraine.

    The Asters’ team in the matter included Partner Igor Svechkar and Associates Tetyana Subbotina and Pavlo Verbolyuk. 

     

  • A First-Hand Account from Ukraine

    A First-Hand Account from Ukraine

    CEE Legal Matters has asked a number of Ukrainian lawyers who were personally involved in the events on Maidan Nezalezhnosti (“Independence Square”) in Kiev to describe both their reasons for being there and the dramatic events they witnessed. This, the first such account, was sent to us by Dmytro Ivanusa, the Head of Legal at Donoway Assurance (Ukraine), a Member of Crowe Horwath International. We want to thank Dmytro for taking the time to write this exclusive account for our readers. 

    Dmytro-Ivanusa

       

    Dmytro Ivanusa, Head of Legal, Donoway Assurance

    Why was I on Independence Square (Maidan) during the most dramatic days and nights? The answer is very simple – I do not want either me or my family to be enslaved in my own country. 

    True jurists cannot accept what Ukraine has been converted into the last three years. Someone who accepts this can not be a jurist, but just a person who for some reason graduated from a law school.  

    I do ask you, what reaction would a normal person have, if the Chief of his State is a twice-convicted illiterate criminal with corresponding ideology and behavior, and the prime-minister differs from the Chief of the State only in the absence of convictions? How to relate to the fact that due to falsified elections the parliamentary majority is the party of oligarchs, criminals, ukrainophobes, and former communists; and that courts of justice, prosecutor offices, police, tax and customs services – almost all local authorities – are totally corrupt? Why are there no State finances to pay wages and pensions, and the State budget is plundered by the family of the President, by oligarchs and members of the ruling party, including through illegal tenders and tax evasion? Why do they destroy small and average businesses, while large businesses are taken away in favor of the family of the President, his minions, or members of the ruling party in illegal ways? Why it is forbidden to protest and censorship is actually introduced? 

    As a jurist and advocate who has practiced law for 20 years I am especially disappointed at the absence of justice in Ukraine. The constitutional principle of the rule of law is not observed. Courts of law are not independent, and they judge not according to the law, but rather sell rulings or decide as requested by  State authorities. You can buy any office in any court and very often young judges are not even aware of the very principles of law. In a Ukrainian court of law you can build a legally irreproachable and confirmed position for a client, observing all necessary procedures, but nonetheless lose your case simply because your opponent is a corrupted official. Seek what country is found among the leaders for applying to the European Court of Human Rights and look through the statistics of this court regarding the cases against Ukraine. 

    To apply for protection to the prosecutor’s office or police is not simply useless, but dangerous, because people join these forces not in order to protect the law, but to steal money from their fellow citizens. No one can investigate complex crimes, since all professionals retired a long time ago. The State, gathering taxes from taxpayers, spends this money to train divisions of police tasked not with investigation, but instead with dispersing demonstrations of taxpayers.

    I do ask you, what would you name a social system where one group of people has no rights, and is in fact owned by another group of people; and this second group includes armed people. It is definitely not a democracy. And this is what Yanukovych and his mob wanted, and this is what I don’t, and this is what brought me to Maidan. 

    What did I feel on Maidan? Fear that they can kill or mutilate me? At the beginning yes, certainly. I am indeed a normal person who wants to live and does not like pain. In front of my eyes they killed and wounded people who could have been my parents, brothers, or children. Try to imagine my feeling when you focus your attention on a young fellow with a home-made wooden shield unable to resist bullets who directs himself to the side of shooting, and in a couple of minutes later this guy is brought back killed by a shot in his head. And this is neither a computer game or a movie  you can stop and rewind. What stopped me from fleeing? The fury I felt towards Yanukovych and his mob ordered to murder us. And the thirst of justified retribution. And the possibility that some day my son would ask the question: “Dad, why did you run away?” Fear then disappeared because I was among thousands of unarmed people who, with open hearts, prayers, and the words from our anthem “we will give soul and body” fought under the bullets of sniper for my freedom. 

    Now there is pain, pride, and hope in my heart. Pain for those who were murdered and wounded, pride for my people, and hope that this time we will be able to change everything and build a rule-of-law state. 

    In 1991 Ukraine gained independence without a fight. In 2014 they tried to take it away. This is our war for independence. 

    I am a jurist, and for me the words from the United States’ Declaration of Independence have value. “We hold these truths to be self-evident that all men are created equal, that they are endowed by their Creator with certain unalienable rights, that among these are life, liberty and pursuit of happiness. That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed. That whenever any form of government becomes destructive of these ends, it is the right of the people to alter or to abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness”. I am confident that Yanukovych does not know about existence of this document, or know its author. But I believe that soon he will learn other words of Thomas Jefferson: “The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants”. The Heavenly Hundred has its blood shed. It is the tyrant’s turn.

    (The thoughts, opinions, and assertions contained in this account are solely those of the author, and do not necessarily reflect the opinions of CEE Legal Matters).