Category: Ukraine

On 19 March 2024, the Ukrainian Government decided to close a sanctions-related database maintained by the National Agency on Corruption Prevention (“NACP”).

Back in early 2022, the NACP had initiated the “War & Sanction Portal”. This online portal featured sections like “International Sponsors of War”, “Candidates for Sanctions” and other lists covering a range of areas. It also included lists of individuals and companies that were being sanctioned in Ukraine and its partner countries (“Database”).

The Database was set up as part of a wider effort led by the Yermak-McFaul Sanctions Group to enhance sanctions and put pressure on Russia to cease its war against Ukraine. The NACP analysed publicly available information about companies and individuals and listed the ones, who financially supported the Russian government through business or other means. Although inclusion on the lists did not lead to immediate legal consequences, it could cause reputational damage.

The Ukrainian Government stated that there was no regulatory framework for the existence of the Database. In addition, the Ukrainian Government sees no need in maintaining the Database, as all official information on the imposed sanctions is included in the State Register of Sanctions (link).

Information on persons from the “International Sponsors of War” list will be transferred to the Interagency Working Group on the Implementation of the State Sanctions Policy to process and assess the existence of grounds for imposing sanctions on the persons.

As a result, the State Register of Sanctions will from now on serve as the sole official database of sanctioned entities in Ukraine.

By Yuriy Nechayev, Partner, Avellum

On 22 March 2024, the Cabinet of Ministers of Ukraine adopted Resolution No. 331, which amended the process of adoption and placement of children into other forms of family care.

Among the innovations is the provision that adoptive parents have the right to temporarily place a child with them even before a court decision is made. Such placement of a child becomes possible if the adoption candidates (1) have received a positive conclusion from local executive authorities regarding the advisability of adoption and its compliance with the interests of the child, and (2) have filed a petition for the adoption of the child with the court.

Furthermore, the procedure for selecting adoptive parents is simplified: local child welfare services (hereinafter referred to as Services) will now have access to information about children in need of adoption in areas beyond their territorial jurisdiction. Regional-level Services will be able to see information about children registered in other regions and centralized records. Each potential adoptive parent will be informed about the registration of a new child, with the opportunity to familiarize themselves with information about the child. These changes are aimed at speeding up the exchange of information between Services and potential adoptive parents, thus increasing the chances of creating new families.

The timeframe for receiving certificate of completion of training for prospective adoptive parents, foster parents, or guardians – is reduced. Now, the results of completing the training will be known within 5 days instead of 10. These certificates will be sent to the Services with a separate notification of their readiness. Additionally, the validity period of the certificate of completion of the course on raising orphaned and parentless children is extended to 24 months.

Certain innovations concern families with military personnel. Under the general rule, each spouse is required to provide a health statement as part of the guardianship or custody establishment procedure. Now, if one of the spouses is performing military service, they can submit such a statement within 15 days after returning from such service.

There are also changes to the rules for appointing godparents for a child. They can still be guardians/custodians as before. However, starting from now – only if they had the status of godparents before the child acquired the status of an orphan or a child deprived of parental care. These changes are aimed at preventing potential abuse by unscrupulous godparents.

An important innovation is the introduction of financial support for families where a child is temporarily placed before the child becomes an orphan or is deprived of parental care. The amount of financial support is set at 2.5 (for children with disabilities – 3.5) times the subsistence minimum for children of the corresponding age. Financial support will be paid for the duration of the temporary placement of the child, but not exceeding six months. In case of extension of temporary placement, the payment of assistance may also be extended upon request of the recipient.

By Talina Kravtsova, Partner, Yuri Neklyaev, Senior Associate, Asters

On 8 March 2024, the Law of Ukraine “Introducing Amendments to Certain Laws of Ukraine on the Enhancement of Corporate Governance” (the “Law” or the “SOE Law”) entered into force. This Law is a significant step towards the alignment of the Ukrainian legal framework for state-owned enterprises (“SOEs”) with international best practices, particularly the OECD Guidelines for Corporate Governance of SOEs (“OECD Guidelines”).

Reflecting this first-hand experience, Kinstellar highlights the role of the adopted Law for the SOE sector, the overall business environment and the broader post-war recovery efforts, and also shares some practical insights on the adopted changes.

Role of SOE Law: Understanding the Big Picture

Since 2014, Ukrainian governments have, on numerous occasions, attempted to enhance the country’s legal framework on the corporate governance of SOEs. Such reforms were deemed to be crucial, given the significantly large SOE portfolio and the lack of efficiency in the operations of the SOE sector. In any event, these past reform efforts remained patchy, and proved unable to address obsolete practices comprehensively. The adoption in first reading of draft law No.5593-d (“SOE Draft Law”) in 2021 marked a significant step forward in Ukraine towards far more comprehensive reforms – one, albeit suspended as a consequence of the full-scale Russian invasion the following year.

Subsequently, in light of a renewed understanding of the significance of SOE reforms for Ukraine’s much-needed reconstruction and recovery efforts, work on the SOE Draft Law was actively resumed in 2023. Assisting EBRD in its technical support to the Ministry of the Economy of Ukraine, Kinstellar contributed to the redrafting of SOE Draft Law. This work entailed both technical and substantive revisions of the text to better reflect the necessity of processing numerous amendments suggested by members of parliament (MPs), the need to balance and implement suggestions by various stakeholders, and the adoption of new legislation on joint stock companies. Upon numerous rounds of consultations and discussions between the diverse working groups engaged in the enhancement of the draft legislation, the SOE Law was ultimately passed in February 2024, and is designed to reflect a viable consensus between key stakeholders.

The Law is designed to fully reflect the aspirations of Ukraine to align its corporate governance framework with best practice standards, including the OECD Guidelines. For example, the Law empowers supervisory boards of SOEs with key responsibilities, finally entrusting them with strategic guidance functions. New approaches to remuneration, grounds for dismissal of Supervisory Board members and the evaluation of Board activities also establish necessary safeguards from undue political interference. The Law also offers other welcome changes, including the elimination of the basic minimum state dividend pay-out ratio, the introduction of new instruments for the enhancement of exercising a state ownership function – such as an overarching State Ownership Policy to be developed by the government – and requires letters of expectation to be approved annually by SOEs.

At the same time, the Law includes provisions that reflect the challenges of a state in the midst of war. In particular, in order to avoid any delays to operational decisions by SOEs in the current wartime realities, the Law allows for the transfer of the exclusive powers of Supervisory Boards to the ownership entity/shareholder for the period of the temporary absence of a fully authorised Board composition. The SOE Law also includes certain fiscal restrictions, which the state deems to be a necessary safeguard during the ongoing period of martial law. For example, a mandatory 30% dividend rate is established for a transition period, while the operational independence of a number of key SOEs in financial planning remains restricted. Such provisions are not yet fully aligned with international best practice standards; however, their inclusion is deemed to be required under the current circumstances. A positive sign is that the most such provisions are of transitional nature, effective only during the period of martial law and within 12 months upon its termination – but not longer than within 3 years upon the entry of the Law into force. Crucially, in three years the Ukrainian government also plans to devise further reforms to the corporate governance of SOEs, which further underscores the significance of the Law as a vital step in ongoing reforms.

All in all, the adoption of the Law can be viewed as a much-needed and highly anticipated forward step. For Ukraine, such significant progress with the enhancement of the corporate governance framework marks a willingness by the country to meet its international commitments. New rules for public sector entities and the creation of a level playing field for SOEs (to the extent possible in wartime) should increase the efficiency of more than just the SOE sector. Provided that any future secondary legislation aligns with the principles outlined in the Law, the changes implemented by the SOE Law should also enhance the overall business environment, fostering investor trust in the recovery and reconstruction of Ukraine’s economy.

Overview of Main Developments under the SOE Law

1. Fundamental changes in the Status of SOE Supervisory Boards

• Supervisory Board establishment is mandatory for those SOEs meeting the criteria outlined in the State Ownership Policy, or as required by law. A one-tier Board may be established in the SOE where a Supervisory Board is not mandatory.
• Independent members should constitute the majority of all members of an SOE’s Supervisory Board. The SOE Law also includes a revised list of independence criteria.
• Supervisory Boards are empowered with key operational responsibilities, including the approval of financial, strategic and investment plans, the appointment and termination of the authority of CEOs, and a determination of their remuneration.
• However, during the transition period (within 12 months upon the termination of martial law, but not longer than within 3 years upon the entry of the Law into force), any Supervisory Board exclusive powers can be transferred to the ownership entity/shareholder if the fully authorised composition of the Supervisory Board of the given SOE is absent during this transition period. Once the authorised members of the Supervisory Board are duly appointed, the Board may revise any decisions adopted during its temporary absence.
• The SOE Law also restricts the independence of SOE Supervisory Boards that are (1) natural monopolies and (2) enterprises with target estimated net profits over UAH 50m (“Key SOEs”) in financial planning. In particular, the Ministry of Finance is granted authority with respect to the:
  • pre-approval of certain key financial indicators of Key SOEs (to be further incorporated into their financial, strategic and investment plans),
  • approval of accounting methodologies of Key SOEs for so-called doubtful
    debts, and
  • approval of maximum thresholds for capital investments by Key SOEs during transition periods.
• A procedure for the evaluation of Supervisory Board activities is introduced, which should take place at least once every three years. The evaluation procedure is not regulated by the Law in detail; rather, it should be developed by the government via subsequent secondary legislation. Evaluation results should be available on the SOE website. An independent consultant may be engaged for such an evaluation. A report or self-evaluation, or explanations of the actions by the Supervisory Board may also be used. Evaluation results may be considered when the matter of the early termination of the authority of Board members is decided.
• The Law establishes an exhaustive list of grounds for the early termination of the authority of members of Supervisory Boards with termination procedures varying depending on these grounds.

2. Exercising an ownership function 

• The Cabinet of Ministers of Ukraine has a mandate to develop the State Ownership Policy, subject to regular revision and public consultations. Such an overarching policy document is expected to define the principles of key matters including the justification and goals for state ownership of SOEs, the classification of SOEs, the determination of SOE categories subject to non-financial goals, and the criteria for the mandatory establishment of Supervisory Boards.
• Remuneration Policies and the State Dividend Policy constitute integral parts of the State Ownership Policy. Such policies should include principles and methodological approaches for defining:
  • the remuneration levels of members of executive and supervisory bodies of SOEs and
  • the amount and payment of dividends to the state budget, respectively.
• Based on the State Ownership Policy and upon holding consultations with the Supervisory Board, the ownership entity/shareholders should approve an annual owner’s letter of expectation, outlining short- and mid-term financial, operational and non-financial performance objectives for SOEs. Owner’s letters of expectation are subject to publication. The Ministry of the Economy of Ukraine has the authority to develop guidelines on the preparation of letters of expectation. Letters of expectation of Key SOEs should include certain key financial indicators as pre-approved by the Ministry of Finance.

3. Dividend payments 

• Decisions on dividend payments should be adopted by the ownership entity or by shareholders of the SOE in line with the State Dividend Policy upon the issuance of the financial and economic results of the SOE for the given year. Supervisory Boards have the authority to submit suggestions on dividend levels in line with the State Dividend Policy.
• However, the Law establishes a mandatory 30% dividend rate for all SOEs for the transition period (during martial law, and within 12 months upon its termination, but not longer than within 3 years upon the entry of the Law into force).
• Dividends can be paid in instalments if the government adopts the respective decision.

The Law provides for the consolidated payment of dividends for company groups.

By Olena Kuchynska, Managing Partner, and Olena Kandya, Senior Associate, Kinstellar

Integrites has provided pro bono defense representation to a soldier of the Armed Forces of Ukraine concerning criminal charges brought against him by the military command. The firm also advised the soldier’s family on obtaining monetary compensation.

According to Integrites, “the client, a combatant in various regions of Ukraine in 2022-2024, received serious injuries in December 2022 near the city of Bakhmut, Donetsk region. After a complex medical treatment and long rehabilitation, he returned to the unit but, due to complications from his previous injuries, he received new ones and was unable to continue his combat mission. His refusal to return to combat positions for health reasons resulted in the initiation of an internal investigation, followed by the criminal proceedings opened against him.”

The firm reports that, in February 2024, “all the charges against the client were dropped at the initial stage of the investigation. Our team also advises the client on the social security and remuneration for the servicemen, obtaining the status of a combatant, and the collection of due monetary compensation for the period of his treatment and rehabilitation.” In addition, the firm is also advising the soldier’s “mother regarding disbursements related to the captivity of her husband (the client’s father) by Russian forces.”

The Integrites team included Partner Oleksandr Onischchenko, Associate Mykola Yerema, and Paralegal Viktoriia Bondar.

Considering Ukraine’s legal landscape against the backdrop of the ongoing war, Hillmont Partners Senior Partner Valentyn Zasukha delves into planning, client relationships, sector-specific issues, strategic adaptations to new realities, and economic prospects.

“The reality we face today is one of profound uncertainty, a condition we’ve somewhat grown accustomed to, given the circumstances of the war,” Zasukha begins. “This unpredictability has made long or mid-term planning nearly impossible for legal practices. Our focus has shifted from pioneering and new client development strategies to business development efforts that are targeted at flexibility and cultivating lasting relationships with key clients,” he shares. “The beginning of 2024 was particularly challenging, marked by a stark contrast from the optimism we harbored last year; now, it’s all about keeping our team’s spirits high and adjusting to the new reality that the legal services business operates in.”

Speaking about the changing nature of legal transactions due to the war, Zasukha reports that “the last few transactions we’ve managed were primarily divestment requests from Ukraine, a reflection of the current sad reality. In light of that, our strategy has always been to remain flexible and plan cautiously, understanding that forward momentum, no matter how slow, is crucial,” he says.

“The volatility of market movements cannot be overstated, particularly in the agricultural sector, which has faced significant challenges. While crop yields may be sustainable, the disruption of grain corridors and transportation logistics to the West has had a considerable impact,” Zasukha explains. Additionally, the “complete loss of the Azovstal Metallurgical Combine – a famous Ukrainian metallurgical facility located in Mariupol – to the aggressors dealt a significant blow to the metallurgical industry, removing a key player from our market,” he comments.

Given such market volatility, it is unsurprising that reconstruction investments are a prominent discussion point for investors. “There’s considerable discussion around multiple restructurings across various sectors, driven by a sense of anticipation for post-war reconstruction,” Zasukha says. “This includes a wide range of projects, from infrastructure and building to defense. The IT/Tech sector, in particular, is seeing a surge in R&D related to defense.” He remains hopeful that, once the war is over, Ukraine will be as “synonymous with technology as we were with agriculture and metallurgy before the war.”

Zasukha reports that businesses are very keen to protect their assets and investments: “We are now actively providing legal assistance to businesses that have experienced significant losses due to the war to obtain compensation through the creation of mutually beneficial coalitions with litigation funds.” Also, “we’ve seen the newly minted Supreme Justice Council take steps towards ensuring legal stability, which is crucial for both market operations and future investments,” he says. “By improving the predictability of court decisions, we’re paving the way for a more stable legal environment. This, coupled with potential sanctions against aggressor-affiliated assets, could open up new investment opportunities once systematic processes for asset confiscation and market reintroduction are established,” he explains.

“It is clear that significant challenges lie ahead, and substantial recovery efforts will be needed once the war concludes. However, there’s a strong sense of resilience and a collective desire to rebuild.” Zasukha believes the reconstruction focus will likely be on infrastructure, “particularly in sectors like agriculture and defense, attracting domestic and international investors. Through all this, the legal sector will play a critical role in navigating the complexities of reconstruction, ensuring stability, and fostering growth.”

On 27 February 2024, the Cabinet of Ministers of Ukraine approved the Procedure for Issuing, Circulating and Redeeming Guarantees of Origin for Electricity Generated from Renewable Energy Sources and the Procedure for Determining the Environmental Value of Electricity Generated from Renewable Energy Sources.

Guarantees of origin certify its holder’s rights to the environmental value, i.e., the amount of avoided CO2 emissions and the positive effect of electricity production from renewable energy sources (“RES”).

The Procedure for guarantees of origin regulates:

• Functioning of the register of guarantees of origin (the “Register”)
• Procedure and requirements for registration in the Register
• Procedure for issuance, circulation and redemption of guarantees of origin
• Procedure for inspecting generating facilities and consumers

Functioning of the Register

The issuance, circulation and redemption of guarantees of origin shall be carried out exclusively between users of the Register. Guarantees of origin are issued, transferred or redeemed by submitting electronic requests in the Register.

Access to the register for applicants and users shall be provided by the administrator of the Register and open and free of charge.

Interaction between the administrator of the Register and users occurs through the created accounts.

The Procedure and requirements for registration in the Register

There are two categories of registered users: those required to register and those for whom registration is optional.

The persons obliged to register are:

• Business entities that sell electricity to the guaranteed buyer at a feed-in tariff or provide a service to the guaranteed buyer using a market premium mechanism
• Universal service providers
• The guaranteed buyer

Other entities and consumers register voluntarily.

The guaranteed buyer will hold guarantees of origin for the “green” electricity produced by RES producers benefiting from state support.

Registration in the Register is carried out based on a relevant application.

The Procedure also outlines the right of registered users to register their installations in the system. These installations must be commissioned and connected to the grid.  The owner of such guarantees of origin will be the guaranteed buyer.

The Procedure for issuing, circulating and redeeming guarantees of origin

The guarantee of origin is issued for the amount of electricity injected into the grid, which amounts to 1 MWh, during the operating period (calendar month in which the electricity was generated).

The guarantee of origin is freely tradable within 12 months from the date of electricity generation, and the redemption of the guarantee is carried out within 18 months from that date.

In case the guarantee is not redeemed within 18 months, such guarantee is annulled.

Regarding the redemption of the guarantee of origin, the Procedure defines:

• Confirmation that goods, works, or services were sold partially or entirely using electricity generated from RES
• Confirmation that the electricity generated by the generating unit and consumed for own needs originates from RES
• Disclosure of information to the electricity consumer about energy sources in accordance with the Procedure for Disclosure of Information to Electricity Consumers on Energy Sources in the General Structure of the Electricity Balance Purchased by the Electricity Supplier and/or Generated at its Own Power Plants, approved by NEURC Resolution No. 2626 of 27 December 2023

The Procedure also stipulates that a guarantee of origin is not issued for electricity supplied from an energy storage facility unless such a facility is used at facilities generating electricity from RES without obtaining a license for energy storage.

The Procedure for redeeming guarantees of origin outside the customs territory of Ukraine is determined by international agreements.

The Procedure for inspections of consumer’s generating facility

The Procedure stipulates that inspections of power generation facilities or construction stages of a power plant generating electricity from RES are carried out in accordance with the inspection procedure approved by the NEURC.

The inspection of the consumer’s generating facility (including an active consumer) is carried out by the NEURC through an on-site inspection.

The grounds for inspecting the consumer’s generating facility (including an active consumer) registered in the register of guarantees of origin are as follows:

• Substantiated, not anonymous, request from an individual or legal entity about a consumer’s violation of the law
• Submission by the consumer of an application for an inspection
• Information on the production of electricity by the consumer’s generating facility not from RES
• Need to verify the accuracy of the information entered in the Register established by the NEURC.

The Procedure for determining the environmental value of electricity generated from RES

The Cabinet of Ministers also approved the Procedure for determining the environmental value of electricity generated from RES, i.e. the amount of CO2 emissions that avoided.

The environmental value is measured in kilograms of CO2 equivalent per 1 MWh of electricity and represents the average volume of greenhouse gases that would have been emitted by electricity producers using thermal power plants in the process of generating electricity from fossil fuels, in the event of replacing electricity generated from RES.

The Ministry of Energy of Ukraine (“Minenergo”) determines the environmental value of electricity generated from RES. For this purpose, Minenergo uses two main sources of information:

1. Public information on annual greenhouse gas emissions in the energy sector, contained in the National Inventory of Anthropogenic Emissions and Absorption of Greenhouse Gases, compiled by the Ministry of Environmental Protection and Natural Resources (“Ministry of Environment”) in accordance with international climate change agreements.
2. Data on the production of electricity from traditional fuel sources obtained from the actual electricity balance in the Ukrainian energy system for the last five years, including data for two years prior to the issuance of the electricity origin guarantee. If this information is not publicly available, the Ministry of Environment provides it to Minenergo within five working days upon request to ensure correct calculation of the environmental value.

By Yaroslav Petrov, Partner, Marta Halabala, Counsel, and Kateryna Andarak, Associate, Asters

Kinstellar has advised The Associated Press on the production of 20 Days in Mariupol, a feature-length documentary about the brutal Russian invasion and devastation of the Ukrainian city of Mariupol in 2022.

According to Kinstellar, “the documentary was recently honored with an Academy Award for Best Documentary, adding to a growing list of accolades for 20 Days in Mariupol, including from Pulitzer, Sundance, BAFTA, and the Directors Guild of America. The Oscar is a first for producer Mstyslav Chernov, a Ukrainian AP video journalist, the AP itself (as a 178-year-old news organization), and is also Ukraine’s first ever Oscar win!”

The Kinstellar team included Partner Natalia Kirichenko and Associate Olena Stanishevska.

The President of Ukraine has officially signed Law No. 3528-IX “On Amendments to Certain Laws of Ukraine Regarding the State Regulation of Cannabis Plants for Use in Educational Purposes, Educational, Scientific and Scientific-Technical Activities, drugs production, Psychotropic Substances and medicinal products with the aim of increasing patients’ access to the necessary treatment” simply known as the law on cannabis legalisation (the “Medical Cannabis Law”). The Medical Cannabis Law sets forth regulations governing the use of cannabis for educational, scientific, and medical purposes.

This long-awaited Medical Cannabis Law aims to establish a legal framework for the use of cannabis and various cannabis-derived products in a medical context. These products are extensively utilised for addressing conditions such as chemotherapy-induced nausea, epilepsy-related seizures, Alzheimer’s disease, Tourette’s syndrome, cancer-related symptoms, digestive tract disorders, sleep disorders and drug addiction. However, first and foremost, the use of cannabis drugs aims to alleviate chronic pain and aid with war veterans’ recovery by helping them manage both physical and psychological trauma.

The enactment of the Medical Cannabis Law is a pivotal step toward enhancing patient access to vital medical treatments.

Licensing Requirements

The Medical Cannabis Law establishes specific criteria for carrying out the aforementioned activity, particularly with regard to licensing requirements. A license for engaging in activities related to the utilisation of cannabis plants, including the manufacturing of narcotic drugs and psychotropic substances, is granted to companies upon meeting specific criteria outlined by the Cabinet of Ministers of Ukraine. These criteria aim to prevent the theft of cannabis plants and any products or by-products derived from them.

Furthermore, the Cabinet of Ministers had long ago approved a set of conditions, which mandate companies to operate under a permit issued by the National Police of Ukraine. To obtain this permit, entities must adhere to measures geared towards preventing the theft of plants, as well as the ready-made products or waste resulting from them. Moreover, legal entities are obligated to ensure round-the-clock security of their facilities and premises to prevent unauthorised access.

Production Regulations

With the Medical Cannabis Law entering into force, hemp cultivation for medical purposes and its processed products, along with cannabis plant material, will be permitted for educational, scientific, and medical activities including the production of narcotic drugs, psychotropic substances, and medicinal products. However, adherence to strict control and traceability measures at all stages of cultivation is strictly mandated by this law. These measures include:

• Utilising conditioned and certified seeds for hemp cultivation (for medical purposes only), acquired in a clearly set procedure;
• Applying a unique electronic identifier to each cannabis plant intended for medical use, every batch of processed products, and each unit of packaged products. This labelling extends to plant material and medicinal products derived from them, which are dispensed either at pharmacies based on a doctor’s prescription or pursuant to medical institutions’ requisitions, in compliance with pharmaceutical legislation.
• Selling of medicinal products derived from medical hemp or cannabis plant material exclusively by means of a doctor’s prescription, aligned with medical requirements, and issued electronically through the established procedure by the relevant healthcare authority.
• Establishing an electronic information system to monitor the cultivation of medical hemp plants, the movement of these plants, their processed products, cannabis plant material, and the resulting medicinal products, throughout the entire process.

Implementation Challenges and Regulatory Measures

Nevertheless, several regulatory measures still need to be enacted in order to ensure the effective implementation of the Medical Cannabis Law. For instance, the Ministry of Health of Ukraine is tasked with approving medical protocols by specifying the diseases, appropriate dosages, and circumstances under which medicinal cannabis-based treatments should be prescribed. The dispensing of said medicinal products must strictly adhere to medical guidelines and will only be permissible by means of a doctor’s prescription, following the same protocol in place for narcotic and psychotropic drugs. Patients will be authorised to possess and store these medications in the quantities specified in a single prescription.

THC Thresholds: Regulatory Stipulations

The principal psychoactive compound in cannabis is tetrahydrocannabinol (THC), which is recognised for its addictive properties and potential to worsen dependency issues, particularly in vulnerable individuals. Currently, only technical varieties of cannabis with a THC content of less than 0.08% are permitted for cultivation. In comparison, various EU countries, Switzerland, and the USA have permissible THC limits that are higher, ranging from 0.2% to 1%.

In Ukraine, the Medical Cannabis Law stipulates that THC content must not exceed 0.3% for industrial purposes and should only surpass this threshold for medical purposes. Recreational cannabis use—consumption for enjoyment rather than medical necessity—remains prohibited.

There is little doubt that the legalisation of cannabis for medical purposes marks a significant step forward, offering invaluable therapeutic relief to individuals in need.
The enactment of the Medical Cannabis Law is scheduled to take effect in mid-August 2024, which is six months after the official publication of the law.

By Olga Ivanova, Associate, Wolf Theiss

Olga Vorozhbyt has joined Sayenko Kharenko as a Partner and will focus on helping the firm handle cross-border disputes and large-scale investigations, including ones related to FCPA rules.

According to the firm, Vorozhbyt will also advise clients on compliance and sanctions issues. Before joining Sayenko Kharenko, Vorozhbyt spent over two years with Kinstellar and almost five years with DLA Piper. Earlier, she spent two and a half years with CMS and, earlier still, over four years with Chadbourne & Parke. She began her career as an Associate with Baker McKenzie, in 2005, where she spent five years.

“Lately, we have seen a much higher demand from large international clients and major Ukrainian businesses for various contentious matters and ensuring compliance of their operations with the fast-changing legal landscape in Ukraine and globally,” Sayenko Kharenko Partner Nazar Chernyavsky commented. “Olga is a perfect fit for providing this advice to clients in light of her decades of experience with international law firms and acting as a litigator and criminal defense attorney. Her arrival is very timely under the circumstances and will further strengthen our team’s capacity to provide the highest quality legal support to clients when they need it most.”

“I am thrilled to join Sayenko Kharenko, a firm renowned for its unwavering commitment to excellence in the legal profession,” Vorozhbyt added. “Our joint dedication to realizing my potential and bringing innovative ideas to life aligns seamlessly with my new role.”

Avellum has advised the Ministry of Finance of Ukraine on a EUR 37.6 million export loan provided under the framework agreement between the Governments of Ukraine and France with the funds being directed towards purchasing rails for Ukrainian Railways from French manufacturer Saarstahl-Rail.

According to Avellum, this loan is an essential contribution from France to rebuild Ukraine’s critical infrastructure.

The Avellum team included Senior Partner Glib Bondar, Senior Associate Mariana Veremchuk, and Associates Yaroslav Pavliuk, Andrii Kroshko, and Yuliia Bulenok.