Category: Ukraine

The Ukrainian parliament recently adopted Law of Ukraine No. 4116-IX[1] to combat gambling addiction (ludomania) and to improve the state regulation of activities related to the organisation and conduct of gambling and lotteries. Most of the amendments will come into force on 1 April 2025.

The main changes, inter alia, include:

1. The abolition of the Commission for the Regulation of Gambling and Lotteries and the establishment of a new authorized body. 

2. A significant expansion and detailing of applicable rules concerning the advertising of gambling, including:
   • a prohibition on using patriotic themes and topics related to the war with Russia, and on using volunteers and military personnel in advertising;
   • a prohibition on offering or providing a reimbursement of expenses for participation in gambling, and on the offering of free bonuses instead of placing a bet;
   • a prohibition on involving popular figures (except for athletes), and on mentioning the names or displaying the images of popular figures, characters from movies, television and animated films;
   • stricter requirements for sponsorship;
   • the application of advertising rules to announcements concerning charitable activities using the gambling organiser’s brand, and where mentioning gambling organisers or their brands as sponsors or partners.

3. It is established that only Ukrainian resident legal entities that have obtained the necessary license are entitled to provide services for the supply and/or provision of software directly used in the organisation and conduct of gambling activities, including to gambling organisers and non-residents of Ukraine.
4. Requirements for gambling organisers and gambling service providers have been amended.

Regulations on accepting bets and paying out prizes have been detailed.

[1] Law of Ukraine No. 4116-IX dated 4 December 2024 “On Amendments to Certain Legislative Acts of Ukraine to Combat Gambling Addiction (Ludomania) and to Improve the State Regulation of Activities Related to the Organisation and Conduct of Gambling and Lotteries”

By Natalia Kirichenko, Partner, and Olena Stanishevska, Senior Associate, Kinstellar

Sayenko Kharenko has advised Trimble on obtaining merger clearance for its joint venture with AGCO.

Trimble, founded in 1978, is a technology company specializing in positioning, modeling, connectivity, and data analytics that transform industries such as construction, geospatial, agriculture, and transportation. 

AGCO designs, manufactures, and distributes agricultural machinery and precision agriculture technology.

The Sayenko Kharenko team included Partner Maksym Nazarenko, Counsel Julia Kuyda, and Associate Snizhanna Sheshliuk.

Avellum has promoted Former Counsel Oleksii Maslov to Partner in the firm’s Dispute Resolution practice, focusing on International Arbitration.

According to Avellum, during his time with the firm Maslov has “built a strong reputation for representing clients in high-profile international arbitrations and cross-border disputes.”

Maslov joined Avellum in 2016 as an Associate. He was promoted to Senior Associate in 2020 and to Counsel in 2022. 

“Oleksii is a brilliant and dedicated lawyer with a reputation of handling the most sophisticated arbitration cases in Ukraine,” commented Managing Partner Mykola Stetsenko. “I am confident he will excel in his new partner role and further strengthen our Dispute Resolution practice. It is rewarding to see our best team members advance within the firm, reflecting our focus on organic growth and intellectual excellence.”

On 19 December 2024, Ukraine experienced one of the largest cyberattacks on its public registers launched by the Russian Federation. Among the many targeted registers was the State Register of Property Rights to Real Estate (“Real Estate Register”).

Because of the cyberattack, the operation of the Real Estate Register was suspended. Without access to the Real Estate Register, it was impossible to acquire, alienate, lease for a long term or otherwise dispose of real property. As a result, most of the real estate-related transactions in Ukraine have been temporarily put on hold.

On Monday, 20 January 2025, the Ministry of Justice of Ukraine announced that all the remaining critical registers, which were not yet restored, including the Real Estate Register, have finally resumed operation.

Access by notaries and state registrars to the Real Estate Register is still suspended due to the data update but is expected to be restored in the next couple of days.

Recommendations

• Once full access to the Real Estate Register is restored, as a precaution, make sure that the records containing information about your rights or encumbrances to real estate are available in the Real Estate Register and are correct. If there are no records or the records are inaccurate, please consider the following actions:
  Ensuring that all title documents (such as relevant agreements, ownership certificates, extracts from the Property Rights Register, etc.) are readily available; and
• Contacting the state registrar/notary to discuss restoration of the relevant records in the Real Estate Register based on the available title documents or correction of the identified mistakes.

By Serhiy Piontkovsky and Lina Nemchenko, Partners, Elmaz Abkhairova, Senior Associate, Baker McKenzie

Asters has launched a new Forensic practice headed by Counsel Sviatoslav Ogreba.

According to the firm, the practice “focuses on fraud detection, economic crime investigation, and developing protective measures against financial, operational, and reputational risks. Its lawyers provide a comprehensive analysis of the companies’ activities to support decision-making for business owners, investors, and senior management.”

Ogreba has been with the firm since 2019. Earlier, he worked for the National Bank of Ukraine between 2015 and 2019. Earlier still, he was an Auditor with PwC between 2014 and 2015 and KPMG between 2011 and 2012.

“The ongoing war in Ukraine has created unprecedented challenges for local businesses,” said Ogreba. “Office destruction, persistent cyberattacks, military mobilization, and widespread business migration – these conditions have created opportunities for fraudsters while making investigations more complex. We have launched Forensic practice in response to growing demand for sophisticated business protection services, offering our clients expert guidance and practical solutions for risk mitigation and decision-making.”

Doubinsky & Osharova has announced that Partner and Co-Founder Irina Osharova has passed away.

“With deep sorrow, we announce the passing of our dear Partner and Co-Founder of Doubinsky & Osharova Irina Osharova, on January 16, 2025,” a statement from the firm read. “She was an outstanding patent attorney, a talented lawyer, and a true professional. Her contributions to the development of legal practice, as well as her sincerity and dedication to her work, will forever remain in the hearts of those who had the honor of working alongside her. Irina Osharova was involved in volunteering and supported those in need, leaving a lasting impression of humanity, kindness, and generosity. We extend our condolences to her family, friends, and everyone who knew and appreciated Irina Osharova. Her bright memory will live on in our hearts forever.”

“Unfortunately, her heart could not withstand it… A heart filled with love for people, care for each of us, devotion to her country, profound respect for her profession, and sincere admiration for art,” said Managing Partner Michael Doubinsky. “She didn’t just shine – she burned brightly, living life to the fullest and feeling everything deeply within her soul… She will forever remain an example for us. Her passion and dedication were boundless. Indescribable sorrow… Eternal memory…”

Sayenko Kharenko has advised Piraeus Bank on an agreement with the U.S. International Development Finance Corporation on the provision of a USD 20 million portfolio guarantee to the bank.

According to Sayenko Kharenko, “the guarantee, covering 80% of the credit risk, will enable Piraeus Bank to extend up to USD 25 million in loans to Ukrainian small and medium-sized enterprises. This initiative aims to enhance access to financing for SMEs, supporting their resilience and development amid the ongoing challenges posed by the war.”

The Sayenko Kharenko team included Partner Anton Korobeynikov and Associate Yevhen Koval.

Sayenko Kharenko did not respond to our inquiry on the matter.

Markiyan Malskyy has returned to Arzinger as Partner and the firm’s new Head of the West Ukrainian Branch as well as the Co-Head of the International Dispute Resolution and Arbitration Practice. 

Malskyy first joined Arzinger in 2008 and has stayed with the firm until 2022 before moving to Kochanski & Partners where he led the Ukrainian Desk.

“I am excited, enthusiastic and full of inspiration to join the team of exceptional professionals, whom I know so well,” commented Malskyy. “I firmly believe that Ukraine, as it defends its right to exist and grow, needs experienced lawyers to safeguard its interests, support its economy, increase investment, and support the rule of law.”

“We are thrilled to start 2025 with the significant news of Markiyan Malskyy’s return to Arzinger as Partner,” added Managing Partner Timur Bondaryev. “Within our firm, we often joke that the saying “you can’t step into the same river twice” doesn’t refer to us, as we have many stories that prove otherwise. I believe Markiyan’s extensive experience will further strengthen our team and expertise in international arbitration, litigation, real estate, corporate law, infrastructure, and reconstruction projects. The return of such a mastodon as Markiyan will revitalize the West Ukrainian office and bolster our presence in a region where we have historically been market leaders. Markiyan brings tremendous energy for new achievements, and we wholeheartedly wish him and his teams continued success.”

Amid the daily disruptions of war, Ukraine’s legal market has shifted focus to urgent areas like military law, sanctions compliance, and damage compensation, while adapting to workforce shortages and declining revenues, according to Asters Senior Partner Armen Khachaturyan.

“The legal and business landscape in Kyiv has undergone dramatic changes amidst the ongoing war, creating unprecedented challenges for firms and individuals alike,” Khachaturyan says. “Life in the capital is marked by daily air raid sirens and emergency procedures. When sirens sound, office workers are given minutes to evacuate to bomb shelters, and those on the way to work are often advised to return home. Many law firms and businesses have adopted flexible work policies to accommodate these disruptions.” However, he notes, “certain practices, like litigation, require physical presence and court appearances must continue with all possible safety precautions.”

Despite these difficulties, Khachaturyan says that the legal market has adapted impressively. “While workloads and project types have shifted, firms are managing to cope. Recent rankings reveal that the leading firms remain operational, although financial reports indicate significant downturns in revenues.” Pre-war traditional practices like “M&A, banking, and energy have declined, while military-related practices, conscription law, and defense industries are thriving,” he notes. “Firms have developed niche expertise in navigating complex regulations, particularly concerning conscription exemptions for critical industries, which clients highly value. This shift has also given rise to smaller boutique firms, specializing in areas like military law, that have proven both resilient and successful.”

Khachaturyan stresses that certain industries, “such as IT, agribusiness, construction, and defense, remain active.” White-collar crime and business protection-related services are also growing in demand. “Law enforcement agencies, always a challenge for businesses, have intensified their activity during wartime, creating additional demand for legal expertise in sanctions compliance and ownership regulations,” he says. “New laws targeting Russian-linked entities have further added to this demand.”

Khachaturyan says that foreign investment remains limited. “Some clients, particularly in construction, have moved operations to safer locations like Poland, awaiting stability before resuming projects in Ukraine,” he emphasizes. “While ongoing support from the EU and international financial institutions provides some relief, private investments have slowed significantly, with many plans postponed until greater clarity emerges.”

One critical area of legal focus, according to Khachaturyan, is the compensation for war-related damages. “Firms are assisting businesses and individuals in documenting losses and navigating the complex processes required for claims. Efforts to access frozen funds globally are underway, but the path to recovery often involves arbitration or the European courts, and the forum for such claims remains unclear. A newly established registry is beginning to accept individual applications, signaling progress, but much work remains to be done.”

The labor market is another area under strain, Khachaturyan continues. “Migration and conscription have reduced the talent pool, making employers more attentive to retaining and attracting employees,” he points out. “Recruitment continues, with a focus on building expertise in high-demand areas like IT law. Internship programs have also become a crucial pipeline for new talent, with several participants receiving job offers.”

On the legislative front, Khachaturyan says “Ukraine’s parliament has prioritized urgent wartime needs. Recent changes include increasing taxes to support the military and tightening conscription regulations.” Khachaturyan adds that “the government has also introduced initiatives like war risk insurance to attract investment, with public-private partnerships playing a key role. These measures aim to reassure investors and facilitate the export of critical goods like grain, despite ongoing geopolitical challenges.”

On 26 December 2024, the Law “On Amendments to the Criminal Code of Ukraine, the Criminal Procedure Code of Ukraine, and Other Legislative Acts of Ukraine to Improve Mechanisms for Holding Legal Entities Accountable for Bribery of Foreign Officials” No. 4111-IX entered into force. It is meant to implement the OECD Council’s Recommendation on Combating Bribery of Foreign Public Officials in International Business Transactions.

The Law introduces corporate criminal liability for corruption-related offences committed in foreign jurisdictions.

Offences in focus

A legal entity may now be criminally liable for:

• abuse of influence
• offering, promising, or giving bribes
• money laundering

Grounds for criminal liability

A legal entity may be prosecuted if the following conditions cumulatively apply:

• a crime is committed by an agent in the interests of a legal entity
• a crime is directed towards a foreign official

A legal entity may be prosecuted either along with its agent suspected of a crime, or separately under a special procedure.

Liability

Criminal penalties include:

• fine of up to USD3,000,000
• confiscation of funds / assets implicated in an offence

In addition to criminal penalties, the court may impose non-financial measures:

• temporary business restrictions (including disqualification from public procurement or privatisation, suspension of licence, sponsorship restrictions, etc.)
• temporary benefits restrictions (including bans on receiving benefits and handouts, state aid, international project funding, etc).

A legal entity may enter into a plea deal with a prosecutor at any stage of proceedings.

Interim measures

In course of investigation the following injunctions may apply:

• prohibition to amend statutory documents
• prohibition to dispose of assets
• restrictions on material transactions
• prohibition to dissolve a legal entity

By Andriy Fortunenko, Partner, Avellum