LAW FIRM DIRECTORY

Industry Sectors

Staked on

The industrial map of the Ukrainian economy has not changed significantly. The electric power industry and IT sector, agrarian area and pharmaceuticals are traditionally at the top. A high level of business activity is observed on the real estate market. Global trends in the area of international trade make this area of Ukrainian law firms practice a topical one

KHRYSTYNA POSHELIUZHNA

International trade

According to the Ministry of Economic Development and Trade of Ukraine (MEDT), the volume of exports of goods in the eight months of 2018 increased by 12.4% (or $3.4 billion) and amounts to $30.9 billion. Thus, the export of goods has been growing for 20 months running. Ukraine exports products of the agro-industrial complex and food industry (36.8%), metal industry (26.4%), mechanical engineering (11.7%) and mineral products (9.2%). The European Union remains the largest trading partner for Ukraine (exports of goods to EU countries amount to $13 billion).

The volatility of conditions on the world market for Ukrainian export products, significant orientation of Ukrainian exports on raw materials, dependence of domestic manufacturers on external markets, continuation of trade (under embargo) and military aggression by Russia and, of course, the global trade war, are among the factors affecting the development of Ukrainian international trade. There's little likelihood that Ukraine will be able to independently change the course of the global trade war, but the "warring" parties will have to reckon with the largest market in the center of Europe. Experts are convinced that under current circumstances the state should protect national manufacturers and the national market. But let's not forget about foreign investments; foreign investors should become our allies.

Ukrainian business needs a clear strategy at state level and within government institutions which will support business. It is clear that the Ministry of Economic Development and Trade considers itself such an institution, but not everything is clear in the "kingdom". In August 2018, Nataliya Mykolska, who had been the trade commissioner of Ukraine since April 2015, resigned voluntarily. Maksym Nefedov, First Deputy Minister of Economic Development and Trade of Ukraine, is performs the duties of trade commissioner on a temporary basis.

It is noteworthy that foreigners see potential in Ukraine and they’re looking for promising investment projects. But systemic problems in the development of international economic activity (taxation, currency and customs regulations) do not tip the scales in our favor.

 

 

Electric power sense

Experts argue that this composition of the Ukrainian Parliament has, in the past four years, solved the most sensitive issues of the electric power industry: almost 90% of the wishes of the energy sector business came true. Tax regulation in this area was improved, a new incentive regime was introduced for new wells, the issue of land and rent decentralization was resolved, the decision on holding online auctions of special permits for subsoil use was adopted.

In general, 2018 was quite fruitful for the energy area. However, no-one should expect something else from the year, which began with the world-wide sensational victory of Naftogaz over Russia’s Gazprom at the  Arbitration Institute of the Stockholm Chamber of Commerce. The process of judgment enforcement is now under way: Gazprom’s assets have been identified and the procedure for the attachment of the property of subsidiaries and recovery of funds by enforcement is carried out in three jurisdictions.

How has the industrial focus changed in the practice of law firms? Marina Hritsishina, advisor to Sayenko Kharenko, talks about the electric power market. She notes that over the past few years, tremendous work has been done on the preparation and adoption of the Law of Ukraine "On the Electric Power Market" and subsidiary legislation. Now this work is in progress: regulatory acts are being drafted and discussed, changes are being made to adopted regulatory documents.

"It is important for a lawyer in the electric power area not only to understand how the new electric power market will work, but also to participate in the formation of the regulatory framework. Now we have appropriate opportunities: draft regulatory acts are discussed in various working groups and, at the same time, new market practices and principles for the sector’s development are being formed", Marina Hritsishina comments.

At the same time, changes in the legal regulation of the electric power market are of concern to investors. "The prospects for further investment in the new electric power projects, especially in renewable electric power, and the possibility of protecting investments in the event that legislation is amended, are the most frequently asked questions of the clients.­ For us, this is also a challenge of sorts, because it is not always easy to attract financing to the electric power projects in Ukraine", the expert adds, sharing her concerns.

It is expected that the new electric power market will start to operate on July 1, 2019, the result of several years of preparation. According to Marina Hritsishina, next year will be important for the development of the renewable electric power in Ukraine. There are two prerequisites for this in Ukraine: the first one is reduction of the "green tariff" starting from 2020, the second one is the introduction of auctions for new manufacturers of renewable electric power. "As a consequence, we see high demand for the support of renewable electric power projects", the lawyer notes. She adds that with the revision of the renewable electric power incentive mechanism we should expect a change in approaches to the implementation of projects. Support of renewable electric power through auctions should be cost-effective and based on competition.

 

 

Medical STRENGTH

Medical reform in Ukraine turns one year old in October 2018. The first stage of the reform was launched at the start of 2019, namely introduction of a financing mechanism for medical institutions providing primary health care. In late March, the central executive body, called the National Health Service of Ukraine, was established. It implemented the basic principle of medical reform — "money follows the patient". Ukrainians were able to freely choose their physician without reference to their place of registration, and medical institutions that have signed agreements with the National Service received financial freedom.

The legal market responded to the reform by expanding and strengthening the medical law and pharmaceutics practices. But let's look at this issue more globally. The main focus of the Kyiv office of Baker McKenzie International Law Firm is transactional work, so there is always a sense of M&A market dynamics here. Olha Demianiuk, partner, head of the industrial public health team at Baker McKenzie, says that there has been a dramatic intensification on the local M&A market in the last year. In particular, the number of transactions related to the sale or acquisition of assets in the pharmaceutical industry and investment in medical services has increased. "In view of this, we can talk about both investing in completely new projects and expanding the existing business through the acquisition of new assets. We also hope that in the near future more potential transactions being discussed in the market will be made", Olha Demianiuk forecasts. The reform of the healthcare system’s financing is a significant driver of such transactions. This directly affects the healthcare services industry.

Olha Demianiuk says she is convinced that investors are already assessing the possible consequences of full-scale implementation of this reform at all levels of health care. "Starting from 2020, when the reform covers all levels of medical care and the state provides reimbursement for an integrated package of medical services, including the cost of medicines and medical devices, the reform will affect pricing and competition both in the medical services area and in the drug and medical products segment".  

In addition to the Ministry of Health of Ukraine, the Anti-Monopoly Committee of Ukraine (AMCU) is the most important regulator on the pharmaceutical market. "Due to the significant fines imposed by the AMCU on major pharmaceutical companies for anti-competitive practices, clients need evaluation and mitigation of antitrust risks in the matters of pricing, interaction with distributors, retail chains, provision of discounts, bonuses and other motivational payments", the Baker McKenzie partner notes. There is also a global trend of increased activity on the M&A market in the healthcare industry, including increasing specialization of pharmaceutical companies through the acquisition of core products and business portfolios by investment funds.

 

 

Focus on FinTech

Development of digital technologies is forcing the banking sector to reconsider its strategies. Banking institutions adopt digital strategies, create structural units responsible for the implementation of strategies, support digital processes and new products.

2018 was a very successful year for the FinTech industry in Ukraine. Various factors contributed to this both in the economic and in the regulatory environment. Serhiy Papernyk, partner, head of the banking and finance practice and FinTech area at Evris Law Firm, points out that the first digital bank became fully operational this year in our country, showing by example that, despite legal restrictions, such a business model is possible and interesting to consumers. Android Pay and Apple Pay also entered our market this year, allowing bank clients to take a fresh look at the buyer’s payment interface. In addition, in 2018, Ukrainian banks realized the entire positive picture of cooperation with FinTech companies and invited many of them to take part in the development of innovative banking products.

According to Serhiy Papernyk, the pro-active approach taken by the regulator and represented by the National Bank of Ukraine also contributed to the development of the FinTech market. In 2018, the new Law of Ukraine "On Currency and Foreign Exchange Operations", as developed by the NBU, was adopted. The Law of Ukraine "On Electronic Fiduciary Services" also came into force this year; it allows Bank ID technology to be widely used. Last year’s NBU-approved draft law No. 7270, which allows non-banking financial institutions to open accounts and issue electronic money, is being considered by Parliament.

"While evaluating the oncoming reforms in the payment sector, it’s too early to say that the FinTech market has already been formed", Serhiy Papernyk argues. — Many  world-famous FinTech niches are still not occupied in Ukraine and they are promising for our companies. The national market still lacks crowdfunding players, p2p-lending, insuretech, regtech, exchanges and investment robo-advisors".

Despite the fact that the banking system is trying to keep up with the times, the issue of accepting payments in cryptocurrency remains an open one. However, the regulation of turnover of virtual assets falls within the competence of legislators, and this issue is unlikely to be resolved in Ukraine any time soon.

 

 

Real estate — up

The construction and real estate market keeps growing, and this is clear even to the naked eye. Look out the window and somewhere heavy machinery is breaking ground for another new housing block or business center.

What factors had an impact on development of the real estate market in Ukraine in 2018? Vitaliy Pravdyuk, advisor at Konnov & Sozanovsky Attorneys at Law, singled out four factors.

First, the introduction of a new procedure for the expert assessment of real estate. The State Property Fund of Ukraine was authorized to establish the so-called unified database of appraisal reports; all subjects of appraisal activities were obliged to enter information from real estate appraisal reports into such database. The Unified database analyzes, on the basis of embedded software, analyzes the report with a view to spotting violations and enters it in the database, assigning a unique number if there are no violations. "When certifying transactions for which the receipt of the appraisal report is provided, notaries shall verify registration of the report and availability of the unique number. In fact, such innovations have led to an increase in spending on preparing and executing transactions", Vitaliy Pravdyuk noted. Second, the fall in offers on the primary real estate market. Last year, significant changes were made to town planning legislation, including expansion of the list of grounds for canceling construction permits. "These changes led to the abolition of both urban planning terms and restrictions, and declarations for the beginning of construction works for many developers throughout Ukraine", Vitaliy Pravdyuk explains. Third, an increase in offers on the mortgage market. The expert attributed this trend to the fact that the Deposit Guarantee Fund began to use the ProZorro.Sale platform to sell assets. Thus, the sales mechanism has become fully automated and excluded manual interventions. Fourth, the launch of electronic land auctions. According to the advisor at Konnov & Sozanovsky, a pilot project is ongoing, which enables trading of state and municipal land or title to them (rent, superficies, emphyteusis) to be held online.

A considerable amount of work done at the Sayenko Kharenko Law Firm this year was aimed at supporting litigation on issues relating to the allocation of land, the legitimacy of construction activities and erection of facilities, and protection of clients in criminal proceedings related to illegal actions regarding immovable property, including those located in uncontrolled territories of Ukraine, as well as in proceedings for accrual and payment of taxes during construction of various items. Anastasiya Bidakh, a senior lawyer at the firm, notes that, despite the issues indicated, companies are today striving increasingly to conduct their business properly and to comply with all established rules and regulations and, as a result, the number of visits regarding compliance has increased.

As for legal due diligence of real estate items and support of transactions for their alienation, this service sector continues to be in demand, especially because now it is more profitable for companies to acquire real estate than to build it. "The nature of issues faced by developers at the current stage of this market’s development requires law firms to not only focus on high-quality legal support of various processes, but to also ensure efficient coordination of all related activities, in particular, such as GR, PR (anti-PR), management of social projects, as well as relating to ensuring all types and levels of security of the construction process and management of facilities", Anastasiya Bidakh concludes.

"More and more large global and European players from different industries are considering the Ukrainian market for investing their capital, and the number of significant investment projects has increased year after year, which affects the intensification of our company's practices, including in the real estate and construction areas", Andriy Hrebenkin, senior lawyer at Baker McKenzie, says in his comments and names the following trends. First, stable growth of the agrarian sector and investor interest in agrarian assets. Second, the expansion of infrastructure projects. "Every year we celebrate the ever-growing interest of our clients in this area, in the areas of electric power (first of all, in alternative power), privatization of large state assets and construction of port infrastructure", Andriy Hrebenkin emphasizes. Third, the change of trends in the office real estate sector. Andriy Hrebenkin says that there have been a number of changes in this segment recently. First of all, the main reason for this is that the area of premises available for rent in high-class business centers has decreased. Nevertheless, the demand for such premises keeps growing.

The expert is convinced that despite certain difficulties with the implementation of reforms, the vector of Ukrainian investment attractiveness continues to grow. "This strengthens the country's positive image on the global stage and creates a solid foundation for its further development", Mr. Hrebenkin says, summing up.

 

PRACTICE LEADERS. ENERGY & NATURAL RESOURCES

Авторитетные юристы

Olexander Martinenko (CMS Cameron McKenna Nabarro Olswang)

 

Ведущие
юридические фирмы

1

 

CMS Cameron McKenna Nabarro Olswang

 

2

 

Baker McKenzie

 

3

 

Asters

 

4

 

Dentons

 

5

 

Redcliffe Partners

 

6

 

Arzinger

 

7

 

Aequo

 

8

 

Sayenko Kharenko

 

9

 

EVERLEGAL

 

10

 

ANTIKA Law Firm

 

Ведущие юристы

1

 

Vitaliy Radchenko (CMS Cameron McKenna Nabarro Olswang)

 

2

 

Armen Khachaturyan (Asters)

3

 

Yaroslav Petrov (Asters)

4

 

Serhiy Piontkovsky (Baker McKenzie)

5

 

Dmytro Fedoruk (Redcliffe Partners)

OTHER ESTABLISHED PRACTICES

DLA Piper Ukraine

 

Eterna Law

 

EY Ukraine

 

GOLAW

 

Integrites

 

Kinstellar

 

KPMG Law

 

Vasil Kisil & Partners

 

Gramatskiy & Partners

 

Ilyashev & Partners

 

OTHER NOTABLE PRACTITIONERS

Oleg Alyoshin (Vasil Kisil & Partners)

 

Alexander Borodkin (Vasil Kisil & Partners)

 

Alexander Burtovoy (ANTIKA Law Firm)

 

Nazar Chernyavsky (Sayenko Kharenko)

 

Yevheniy Deyneko (EVERLEGAL)

 

Taras Dumych (Wolf Theiss)

 

Oleksiy Feliv (INTEGRITES)

 

Konstantin Gribov (Sayenko Kharenko)

 

Maryna Ilchuk (Arzinger)

Dr. Alexey Kot (ANTIKA)

Olena Kuchynska (Kinstellar)

Oleksandr Kurdydyk (DLA Piper Ukraine)

 

Tamara Lukanina (Asters)

Denis Lysenko (AEQUO)

Oleh Malskyy (Eterna Law)

Andrii Moskalyk (Baker McKenzie)

Sergiy Oberkovych (GOLAW)

Ihor Olekhov (Baker McKenzie)

Andriy Olenyuk (EVERLEGAL)

Myron Rabij (Dentons)

Vladimir Sayenko (Sayenko Kharenko)

Albert Sych (EY Ukraine)

Maksym Sysoiev (Dentons)

PRACTICE LEADERS. INTERNATIONAL TRADE

Trade Remedies/WTO

LEADING FIRMS

1

 

SAYENKO KHARENKO

 

2

 

Ilyashev & Partners

 

3

 

Attorneys’ Association Gestors

 

LEADING INDIVIDUALS

1

 

Tatyana Slipachuk (Sayenko Kharenko)

 

2

 

Anzhela Makhinova (Sayenko Kharenko)

 

3

 

Olena Omelchenko (Ilyashev & Partners)

 

4

 

Andrew Zablotskyi (Sayenko Kharenko )

 

5

 

Yaroslav Snigur (Attorneys’ Association Gestors)

 

PRACTICE LEADERS. AGRIBUSINESS

LEADING FIRMS

1

 

Law Offices of OMP

 

2

 

Alexandrov & Partners

 

3

 

Sayenko Kharenko

 

4

 

Baker McKenzie

 

5

 

Asters

 

OTHER ESTABLISHED PRACTICES

Aequo

 

AGA Partners

ARBITRADE

 

Arzinger

 

AVELLUM

 

Dentons

 

Eterna Law

 

ILF

 

IMG Partners

 

Integrites

 

Ilyashev & Partners

 

Известные юристы*

Dmytro Alexandrov (Alexandrov & Partners)

 

Eugene Blinov (Eterna Law)

 

Ivanna Dorichenko (INTEGRITES)

 

Ivan Kasynyuk (AGA Partners)

 

Alexey Khomyakov (Asters)

 

Oksana Kryzhanivska (Alexandrov & Partners)

Kyryll Levterov (Law Offices of OMP)

 

Denis Lysenko (AEQUO)

Ihor Mehedynyuk (Dentons)

Ihor Melnyk (IMG Partners)

Alexander Minin (KM Partners)

 

Irina Moroz (AGA Partners)

Artem Naumov (ILF Law Firm)

Igor Ogorodniychuk (Law Offices of OMP)

 

Mykola Orlov (Law Offices of OMP)

 

Aminat Suleymanova (AGA Partners)

 

Vyacheslav Yakymchuk (Baker McKenzie)

 

Andrew Zablotskyi (Sayenko Kharenko)

 

PRACTICE LEADERS. PHARMACEUTICALS / MEDICINE & HEALTHCARE

AUTHORITIES

Tetyana Gavrysh(ILF Law Firm)

LEADING FIRMS

1

 

Arzinger

 

2

 

Marchenko Danevych

 

3

 

Baker McKenzie

 

4

 

Legal Alliance Company

 

5

 

ILF

 

Ведущие юристы

1

 

Lana Sinichkina (Arzinger)

 

2

 

Borys Danevych (Marchenko Danevych)

 

3

 

Olha Demianiuk (Baker McKenzie)

 

4

 

Galyna Zagorodniuk (DLA Piper Ukraine)

 

5

 

Olena Khytrova (ILF Law Firm)

 

OTHER ESTABLISHED PRACTICES

Aequo

 

Dentons

 

DLA Piper Ukraine

 

EY Ukraine

 

Ilyashev & Partners

 

ОМП

 

Другие
известные юристы*

Dmytro Aleshko (Legal Alliance Company)

 

Oleksii Bezhevets (Legal Alliance Company)

 

Andriy Gorbatenko (Legal Alliance Company)

 

Irina Kirichenko (Ilyashev & Partners)

 

Illya Kostin (Legal Alliance Company)

 

Oleksandr Mamunya (AEQUO)

 

Igor Ogorodniychuk (Law Offices of OMP)

 

Mykola Orlov (Law Offices of OMP)

Igor Svitlyk (Dentons)