With effect from 27 April 2021, the Ukrainian entities have been granted the right to make regular interest payments and final capital repayment under Eurobonds and other own debt securities traded on foreign stock exchanges in excess of a so called EUR 2 mln e-limit. In addition, the entities are now allowed to accumulate and periodically replenish foreign currency on the bank accounts in the amount of principal and interest due on the notes on the nearest repayment date.

Integrites has helped Khlibni Investytsii subsidiary Chanta Mount secure a USD 3 million loan from Raiffeisen Bank International for the construction of a new production line.

Ukrainian Dispute Resolution specialist Serhii Uvarov has become the 12th partner at Integrites.

The consequences of the pandemic are also leaving their mark on Ukraine. Ukraine’s GDP declined by 4.6% in 2020, compared to expected growth of 3.7% before the pandemic. However, unemployment has (officially) only risen from 9.0% to 9.9%, which may be related to the fact that a large proportion of the workers affected by redundancies were in the informal sector, i.e. not officially employed.

Integrites has successfully represented the interests of China-based Foshan Vinmay Stainless Steel Co. Ltd in an anti-dumping investigation related to the import of welded stainless pipes, manufactured in China, into the Eurasian Economic Union. The proceedings were initiated by Russian stainless pipes producers.

Asters has advised the International Finance Corporation on its provision of a EUR 30 million loan to Ukrgasbank for financing of sustainable energy and energy-efficient projects, including those developed by small and medium enterprises. Integrites advised the bank on the deal.

A new Law “On State Support of Investment Projects with Significant Investments” was adopted. The Law provides for a state agency to be entrusted with the intensive supervision of particularly large investment projects in Ukraine. Earlier in 2020 President Zelenskiy somewhat mockingly referred to this agency as “investment nanny”. However, this is only a small part of the investment promotion.

For some years now, tensions in international trade relations have become more apparent. The pandemic has also created new challenges for companies in their international supply chains. More and more companies are working to make their supply chains more robust. One way of doing this is to bring production closer to their own market, also geographically. The “Made in Europe” label is also already a positive feature among consumers, even though consumers are now looking to regional or even local production, especially for food. And even if consumers are increasingly willing to pay a premium for regional or local production, there are “pain thresholds” here too. Not every product is suitable for regional production. Especially in the area of labour-intensive production and low automation, Ukraine is in the spotlight as a production location.

Integrites has advised JSB Ukrgasbank on a EUR 50 million deal with UFuture to finance its UNIT.City project in Ukraine. Everlegal advised UFuture on the deal.

An entity linked to Ukrainian oligarch Igor Kolomoisky has failed in an unusual attempt to halt the enforcement of a US$1.1 billion award against Russia – as it races to collect on its own treaty award compensating it for expropriated assets in Crimea.

Integrites has successfully defended the interests of Dominoni, an Italian manufacturer of agricultural machinery, in an unfair competition claim made to the Antimonopoly Committee of Ukraine.

Integrites has successfully represented the interests of AKW Ukrainian Kaolin Company before the Antimonopoly Committee of Ukraine regarding an alleged infringement by the rail operator in the Vinnytsia region of Ukraine.

Integrites has successfully defended Orlen Lietuva in a UAH 1.5 million dispute with the Zhytomyr office of the State Fiscal Service of Ukraine.

Integrites has successfully protected the interests of Lifelong Meditech, an Indian producer and exporter of medical equipment, in a safeguard investigation initiated by the Ukrainian producer Hemoplast concerning the import of syringes in Ukraine.

Integrites has represented Metro Cash & Carry Ukraine in a dispute with a former energy supplier who filed a claim against one of the company's stores demanding that it be fined for changing its electricity supplier.

COVID-19 has severely impacted the economy and labour migration. Many foreign citizens employed in Ukraine had to leave the country and work from their homes abroad.

The so-called BEPS Law (No. 466-IX) changed corporate profit taxation rules in Ukraine. The majority of its provisions entered into force on May 23, 2020. Others will become effective later on.

Upon lifting of the quarantine rules, many companies start to resume their activity. All of them intend to renew activities with minimum expenses and maximum comfort for their employees. Many companies will look for optimisation options. Below the INTEGRITES team summarises the main solutions available under the effective laws of Ukraine.