For our Checking In feature, we reach out to partners and heads of practice across CEE to learn how specific practice areas are faring in their jurisdictions. This time around we asked Tax experts: What are the most important changes to the Tax laws in your country since January 2020 and what has their impact been?
On December 15, 2020 CEELM gathered legal experts from across the region for its annual Year-in-Review Round Table conversation. In a wide-ranging discussion, participants shared opinions and perspectives on their markets, on strong (and less-strong) practices across the region, and the effect of the COVID-19 crisis on both, as well as on how technology is changing the legal industry, and what the industry will look like in 2021.
On January 19, 2021, CEE Legal Matters reported that Redcliffe Partners had advised US investors Aspect Energy and SigmaBleyzer — acting jointly through a special-purpose vehicle, Ukrainian Energy, L.L.C. — on an oil & gas production sharing agreement with the Republic of Ukraine. CEEIHM spoke with Amy Flakne, General Counsel at Aspect Energy, to learn more about the deal.
On February 13, 2021, the Law of Ukraine No. 1116-IX “On State Support for Investment Projects with Significant Investments in Ukraine” dated December 17, 2020 (the “Law”) entered into force. This Law aims to attract high-value foreign investment to Ukraine and defines the principal rules and guarantees for the implementation of investment projects (the “investment project”).
Kinstellar is advising Ukrainian road construction company Automagistral-Pivden on the preparation of an unsolicited proposal for the construction of the 300-kilometer Krakovets-Lviv-Brody-Rivne motorway, to be undertaken on a public-private partnership or concession basis in accordance with Ukraine’s new PPP and concession law.
Sayenko Kharenko, working with lead counsel Latham & Watkins, has successfully represented the State of Ukraine in a USD 6.1 billion investment treaty dispute with Littop Enterprises Limited, Bridgemont Ventures Limited, and Bordo Management Limited, the minority shareholders of Ukraine’s oil and gas producer PJSC Ukrnafta. The dispute was heard by the Arbitration Institute of the Stockholm Chamber of Commerce.
Sayenko Kharenko has successfully represented claimant Ukrainian agricultural holding PJSC MHP at the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry, as well as in Ukrainian courts, in connection with the unsuccessful attempt of the unidentified respondent in the case to set aside the ICAC's award.
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.