Category: Ukraine

Asters has helped Intreprinderea Mixta Zernoff S.R.L., an Eastern European manufacturer of spirits and strong alcoholic beverages, obtain approval from Ukraine’s competition authority for its acquisition of Ukrspyrt’s assets.

The privatization valued the relevant Ukrspyrt assets at UAH 120 million. In addition, the deal marks the first acquisition of Ukrspyrt assets by a foreign investor. 

According to its own website, “the State-Owned Enterprise ‘Ukrspyrt’ is the largest producer of high-quality alcohol and alcohol products in Ukraine.” According to the website, the company “provides excellent raw materials for variety of industries. The enterprise’s products are irreplaceable in the manufacture of alcoholic beverages, pharmacy, medicine, perfume, wine, confectionery industry, animal breeding and other sectors of the national economy. [Ukrspyrt] supplies quality ingredients for the production of paint materials, solvents and technical liquids for vehicles. Our products are used even in aeromodelling.”

Asters’ team included Partner Alexey Pustovit and Associate Ivan Yaremchuk.

The Ukrainian Government continues to develop and adopt the gaming laws which are necessary to relaunch the Ukrainian gaming market.

After the Gambling Law entered into force in August 2020, the following principal steps were completed by the Government:

• In September-November 2020, the Cabinet of Ministers established and appointed the members of the Gambling Commission, which is now operational and actively develops industry-related regulations. 
• On 17 December 2020, the Gambling Commission adopted the procedure for obtaining approval for premises where gambling is conducted. The procedure entered into force on 22 January 2021.
• On 30 December 2020, the Cabinet of Ministers published the licensing terms for gambling operators, which:
  • provide for the licensing requirements concerning the activity of online and offline casinos, slot machine halls, online poker operators and betting companies; and
  • detail the procedure for obtaining licences. This means that investors are now able to apply for the licences (subject to fulfilling the requirements, and, in certain cases, obtaining secondary permits as required by law). 
• On 2 February 2021, the Gambling Commission approved the first licence in Ukraine under the new Gambling Law and procedures.

Certain secondary legislation should still be adopted to ensure the operation of the gaming market. This secondary legislation includes the licensing terms for B2B gaming companies, the technical regulations regarding gaming equipment, the list of gaming equipment which is subject to certification, and the list of organisations authorised to certify gaming equipment. This legislation is currently undergoing development and is expected to be adopted soon.

By Rob Shantz, Partner, and Vlad Zakon, Associate, Redcliffe Partners 

Sayenko Kharenko has successfully represented Zhejiang Baokang Wheel Manufacture Co., Ltd. in an anti-dumping investigation related to imports into Ukraine of aluminum wheel disks originating in China and Russia.

According to Sayenko Kharenko, “following the results of the investigation, the international trade team … managed to prove the lowest dumping rate for the firm’s client in the amount of 4.02% (for other Chinese producers the dumping margin rates vary from 14.01% to 49.03%). Moreover, Sayenko Kharenko’s international trade team … managed to prove that there were no justified grounds for application of anti-dumping duties. Thus, the anti-dumping investigation was terminated without any measures.”

Sayenko Kharenko’s team included Partner Anzhela Makhinova, Associate Tetyana Tanchyn, and Junior Associate Oleksandra Sandul.

At the beginning of 2021, the Government of Ukraine published its decision No. 1581-p, dated 16 December 2020, on approval of the list of 102 investment projects prioritised by the State for 2021 – 2023 in such fields as culture and tourism, industry and manufacturing, energy, healthcare, transport, and sports. 76 out of 102 projects may be financed by investors, 47 of which – using a public-private partnership, including the concession framework.

Please see below the list of the most prominent projects, which may be of most interest for investors.

1. Industry and manufacturing

• Launching the production of:
  • artificial ventilators devices (artificial lung ventilators)
  • military equipment (vehicles, cartridges of various caliber, production of prototypes and serial production of unmanned aerial vehicles)
  • concentrated sulfuric acid and nitric acid
• Development and organisation of new production of accumulators with supercapacitors

2. Construction

• Development of the Black Sea coastline in Kherson region (project LA PERLA AZZURRA)
• Development of an entertainment park in Kyiv
• Construction of factories producing:
  • titanium powder and its products
  • titanium and aluminium tubes and heat-resistant alloys

3. Airports and railroad infrastructure

• Reconstruction and/or modernisation of 12 Ukrainian airports
• Construction of a new airport in Zakarpattia region (either in city Mukachevo, or village Serednie)
• Pilot concessions of 7 railroad stations

4. Roads

• Repair and modernisation of 11 highway sections
• Construction of:
  • a new Kyiv bypass road
  • a bridge over Southern Buh river in Mykolaiv

5. Seaports

• Concession projects in Odesa, Chornomorsk, and Berdiansk seaports
• Concession of a railway-ferry complex in Chornomorsk seaport

By Maksym Maksymenko, Partner, and Rostyslav Mushka, Associate, Avellum

Avellum has helped Samoran Investments Limited, a company affiliated with Yakov Gribov, a beneficiary of the Nemiroff Group, obtain merger control clearance from the Antimonopoly Committee of Ukraine for the acquisition of shares in Rostok Agroinvest Limited.

Samoran Investments Limited is a holding company with a diversified portfolio of assets in the fields of production of oil and agricultural products. Rostok Agroinvest Limited is a part of Rostok-Holding agro-industrial group.

Avellum’s team included Counsel Mykyta Nota, Senior Associate Anton Arkhypov, and Associate Valeriia Lepska and Yelyzaveta Kashyna.

Vasil Kisil & Partners has advised the KDD Group and Kovalska on a project to build the NUVO Business Park.

Vasil Kisil & Partners reported that the project will be built on Zhylyanska street in Kyiv, in a former industrial zone covering about 20,000 square meters, and it will include five A-class office centers, business-class housing, and apartments. According to the firm, the commercial area of the business park exceeds 88,000 square meters and the KDD Group and Kovalska will invest approximately USD 100 million in the project over the next five years.

Vasil Kisil & Partners team included Partner Alexander Borodkin and Associate Roman Yemets.

Senior Associate Oleksandr Pashynin has been promoted to Counsel and Head of Banking & Finance at Everlegal in Ukraine.

According to Everlegal, Pashynin ”will continue focusing on Dispute Resolution matters, specifically in the Banking and Finance sector. Oleksandr will lead the team and protect the interests of Ukrainian and foreign clients in various types of litigation, including corporate and commercial disputes.”

Pashynin has a Master’s degree from the Faculty of Law at the Taras Shevchenko National University of Kyiv.

Editor’s Note: After this article was published Everlegal informed us that Pashynin has been, in fact, appointed to the role of Head of Banking & Finance, and not of Litigation as the firm initially informed us. The article was updated accordingly. 

Asters has successfully defended Anders Aslund, a Swedish-American economist, diplomat, and expert on the Ukrainian economy, in a defamation dispute with Igor Kolomoisky, former co-owner of PrivatBank, before the Kyiv Court of Appeal.

According to Asters, “[Kolomoisky] asked the Court to compel Dr. Anders Aslund to retract public statements reported by him on the allegedly fraudulent actions of Igor Kolomoisky leading to billions in losses for PrivatBank. Based on the position in defense developed by Asters’ lawyers, on January 21, 2021, the Kyiv Court of Appeal passed a resolution allowing Dr. Aslund’s appeal in its entirety and setting aside the Pechersk District Court decision made in favor of Igor Kolomoisky. According to the court’s decision, Dr. Anders Aslund’s statements are value judgments, and cannot be retracted.” According to the firm, “the judges highlighted that Kolomoisky’s claims interfere with the defendant’s exercise of the freedom of expression.”

Asters’s team included Partner Andriy Pozhidayev and Senior Associates Oleksiy Ukolov and Nataliia Mysnyk. 

Ilyashev & Partners has successfully represented Volodymyr Mykolaiovych Isaienko in a dispute with the Ministry of Education and Science of Ukraine over his dismissal from the position of Rector of the National Aviation University. The case was heard by the Shevchenkivskyi District Court of Kyiv.

According to Ilyashev & Partners, on January 27, 2021, the court ruled that Isaienko should be reinstated as Rector of the National Aviation University. According to the firm, the decision “shall have effect from his dismissal on October 21, 2020 onwards, and … he is to be compensated with his average salaries for the period of his forced unemployment.”

The Ilyashev & Partners team included Senior Partner Roman Marchenko, Counsel Valeriia Gudiy, Attorney-at-Law Iryna Demchenko, and Lawyer Olena Sereda.

After five years with Aver Lex, Volodymyr Yenich has been promoted to Partner at the firm.

According to Aver Lex, Yenich has “unique experience in representing clients in commercial, corporate, and administrative disputes.” 

Yenich is a graduate of the National Academy of Internal Affairs of Ukraine. Before joining Aver Lex, he spent over five and a half years with the Capital Law Firm and three and a half years with Deshunin & Partners.

Kateryna Stashkiv was promoted to Counsel at Aver Lex in the same promotion round.

“The decision to expand the managerial team is the expected result of successful synergy between criminal and litigation practices, as well as tremendous growth of litigation as a standalone area of legal business,” commented Aver Lex Managing Partner Olga Prosyanyuk. ”We are sure that the exceptional experience of Volodymyr and Kateryna along with their new roles will contribute to further developments of our litigation practice.”