VKP Experts Use Innovative Webinar Format to Guide Foreign Businesses Contemplating Entering the Ukrainian Market
On June 30, 2010, Vasil Kisil & Partners joint its efforts with AmLaw Group, a US based a boutique law firm that supports U.S. companies with their outbound transactions and investments overseas, and launched a series of interactive educational on-line seminars and other events geared toward foreign businesses interested in Ukraine. The first webinar dealt with Top 10 Legal Issues to Watch Out For When Entering the Ukrainian Market: What Your JV Partner or Attorney Won’t Always Tell You.
With the presidential elections in Ukraine having now passed, the local and international business communities are now resuming their activities under the new Yanukovich administration. Ukraine’s proximity to the EU as well as the Russian market has long made it an appealing location for international firms, and hopes for political stability are driving newly heightened interest abroad, particularly among American and Canadian firms.
As with any market, there are fundamental issues to keep in mind when entering the Ukrainian market either independently, through a joint venture, or an acquisition. Leading attorneys from Vasil Kisil & Partners Law Firm, Denis Lysenko, Partner, head of its corporate group, and Anna Babych, counselor, shared valuable insights on the common pitfalls that foreign companies encounter when entering Ukraine and what to do to avoid them.
The webinar started with Mr. Lysenko painting a rather positive picture of current Ukrainian political and economic landscape. It looks like Ukraine may get new loan facilities from the International Monetary Fund (IMF); VPM Tihipko remains optimistic in this regard; there is a EC macroeconomic assistance of EUR 500 mln to follow and a USD 2 bln state loan from Russia to cover budget spending secured. Party of Regions led by Mr.Yanukovych aims to strengthen its role in the Government by autumn 2010 (including more ministerial positions). There is USD 3+ bn to be spent by the state on EURO 2012 projects and IFC and EBRD are active in financing farming and infrastructure development (MHP, Nibulon, Ukrfarm etc.). The Government is to focus on infrastructure and energy development.
Yet with all emerging markets being far more varied and volatile than mature ones, there are a number of legal issues to consider when contemplating doing business in Ukraine. Further during the seminar Anna Babych, a recognized member of VKP’s strong corporate team, outlined the positive and the negative, things to consider and to watch out for in a number of core areas: corporate governance, regulatory matters, foreign currency control and investments, merger control, employment of foreigners, land issues, tax matters, dividends and VAT refund, WTO and international trade, foreign court decisions (enforcement and recognition).
At the end of the one-hour event participants from the US, Ukraine, Canada and Europe had a chance to ask questions and receive clarification of the sometimes ambiguous Ukrainian legal framework. This webinar is the very first of what is to be a series of such events, all of which are going to be announced on VKP’s website www.kisilandpartners.com.
With topic suggestions and/or in order to contact the presenters, please, feel free to call Vasil Kisil & Partners Law Firm at +38 044 581-7777, or email vkp@vkp.kiev.ua.
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