Title: Working with clients from Ukraine: Inbound and outbound investments
1Working with clients from Ukraine Inbound and
outbound investments
2CONTENT
- Country profile and investment climate
- Ukrainian antitrust regulation
- Confidential information
- Money-laundering regulation
- Anticorruption regulation
- Ukrainian taxes
- Double taxation avoidance treaties
- Cyprus, the Netherlands, Switzerland bilateral
treaties with - Ukraine
- Tax information exchange
- Offshore jurisdictions
- Tax liability
- Currency regulations
- Dual citizenship
- Family law, inheritance in Ukraine
- Real estate
- Recognition of decisions of foreign tribunals in
Ukraine
3COUNTRY PROFILE AND INVESTMENT CLIMATE
- Ukraine is the 2nd largest country in Europe by
size and 6th largest by population - The population of Ukraine as of 1 Nov 2012 was
45.56 million people and fell 0.2 y.o.y. - Growth forecast for 2013 from 3.5 to 2.2 and
further GDP data reviews are possible. - Ukrainian economy still largely depends on
performance of export-oriented industries
(metals, chemistry, etc.) vulnerable to price
shocks on external markets. In particular, a 20
fall in metal prices led to Ukraines GDP
decreasing by 0.3 percentage points. - EURO-2012 and parliamentary elections were strong
catalysts - The Ukrainian currency devalued to the rate of
81 to the U.S. dollar and since 2010 stabilized
at that ratio with moderate occasional
corrections worsening macroeconomic indicators,
growing trade deficit, industrial decline,
shrinking foreign exchange reserves, external
debt servicing put a pressure on the national
currency to depreciate - For the first time since 2002, Ukraine posted a
deflation of 0.2 as a result of the monetary
policy of the National Bank of Ukraine aimed at
price and exchange rate stability during the
election year. Experts signal that changes in NBU
monetary policy and measures to be taken in
response to IMF demands keep inflation risks high
in 2013 - IMF supported programs were put on hold during
pre-election period, subsequent disbursements
were postponed however, discussions are expected
to resume in the wake of the IMF missions to
Ukraine. Days before the mission in Januray
Ukraine signaled it could take a series of
unpopular measures, including raising the price
of natural gas and utilities, a long-delayed move
that could help it unlock critical financial help
from IMF. Other conditions include greater
exchange rate flexibility, achieving the planned
budget deficit size, and the fulfillment of a
number of objectives in the banking sector
4UKRAINIAN ANTITRUST REGULATIONS
5 TRANSACTIONS THAT MAY BE SUBJECT TO ANTITRUST
PRIOR APPROVAL
- merger or consolidation of a business entity
- acquisition of direct/indirect control over a
business entity - direct or indirect acquisition, obtaining of
ownership of, or management over, the shares
(participating interest) of the business entity,
if such acquisition results in the obtaining of
over 25 (but under 50) or 50 (or over 50) of
the voting rights of the target business entity - establishment of a JV
- acquisition of title, to assets comprising the
integral property complex or its part (structural
subdivision), as well as the rent, lease,
concession or acquisition by other means of the
right to use such assets, including the
acquisition of such assets from a business entity
being liquidated - appointment/election to the senior management
position of an individual who already holds a
similar level position in another legal entity - causing the cross-over of more than half of the
members of the supervisory board, management, or
another supervisory or executive body of two or
more business entities - THE LIST IS NOT EXHAUSTIVE
6THRESHOLDS FOR TRANSACTIONS SUBJECT TO PRIOR
APPROVAL BY THE ANTIMONOPOLY COMMITTEE OF UKRAINE
(AMCU)
- (a) the combined worldwide total asset value or
aggregated sales turnover for the last financial
year of all participants in the concentration,
taking into account their relations of controls,
exceeds 12 million and -
- (b) the worldwide total asset value or
aggregated sales turnover for the last financial
year of at least two participants of a
concentration, taking into account their
relations of controls, exceeds 1 million and - (c) the total asset value or total sales of
goods in the Ukraine for the last financial year
of at least one participant in a concentration,
taking into account its relations of controls,
exceeds 1 million - OR, irrespective of the above thresholds,
-
- one or all the participants of the
concentration-together with controlled or
controlling entities have a market share which
exceeds 35 of this or an adjacent product market
7INFORMATION THAT MUST BE DISCLOSED TO THE AMCU
- Detailed description of the transaction
- Calculation of the aggregate value of assets and
sales in the last fiscal year - Data about the parties to the concentration,
their control relations - Information on significant shareholders (10 and
more) ownership structure up to their beneficial
owners i.e. individuals who are substantial
shareholders - Information about principal activities in Ukraine
including market shares - Lists of members of supervisory councils, other
managing bodies - Lists of individuals who are spouses, parents,
children or siblings who are authorized to vote
in the supreme management body - Foundation documents, registration certificates,
transaction documents - Other specific documents that the AMCU requests
to be provided, which depend on the nature, type
and specifics of the concentration - AMCU HAS THE RIGHT TO REQUEST ANY DOCUMENT/DATA
IT DEEMS NECESSARY FOR CONSIDERATION OF AN
APPLICATION - Special procedure for filing confidential
information may be filed separately in an
envelope, must be marked as CONFIDENTIAL DATA
on each page
8CONFIDENTIAL INFORMATION
9CONFIDENTIAL INFORMATION
- personal data
- commercial secret
- secrecy of correspondence
- advocate secrecy
- bank secrecy
- notary secrecy
- audit secrecy
10DISCLOSURE IS ALLOWED
- 1. Based on the consent of the owner of
information - Based on the authority of the law enforcement
bodies - - if data on law breach that entails criminal
liability is available upon decision of the
head/deputy head of respective operative division
- law enforcement authorities have the right to
get acquainted only on site with documents and
data describing companies activities, make
copies thereof - - upon Investigating Judge (elected position,
the judge of the court of first appearance
authorized to control observance of rights of
persons engaged in criminal proceedings) decision
request such documents and data, as well as
data on the suspects way of life, their income
sources, etc., the copies of the collected
documents should be left with suspects - - upon Investigating Judge decision (in this
case he should be a Head of the Court of Appeal
of relevant oblast) the to prevent crime or to
determine the truth during investigation of a
criminal case if information cannot be obtained
otherwise law enforcement authorities have the
right to enter into premises secretly, collect
information from information channels, secret
control over correspondence, etc. - - under the new Criminal Procedural Code of
Ukraine adopted in 2012 in exceptional cases of
urgency associated with the preservation of human
life and preventing the grave/ especially grave
crime, secret investigative action can be
initiated prior to enactment of the decree of the
investigating judge by the decision of the
prosecutor /investigator, agreed with the
prosecutor. In this case, the prosecutor is
obliged to immediately after the beginning of
such secret investigation should address relevant
request to the investigating judge - - It is prohibited to involve in confidential
cooperation during the undercover investigation
lawyers, notaries, medical professionals, clergy,
journalists, if such cooperation will be linked
to the disclosure of confidential information of
a professional nature
11MONEY LAUNDERING REGULATIONS
12ANTI-MONEY LAUNDERING REGULATIONS
- 180 days rule - requirement for the return of
currency revenue is temporarily shortened to 90
days effective 19.11.2012-19.05.2013 payments
for goods/services exported by Ukrainian
residents must be received by them within 180
(temporary 90) days after delivery of
goods/performance of services. Import of
goods/services, paid in advance by Ukrainian
residents, must be received by them within 180
(temporary 90) days after they made the advanced
payment. -
- 2010-2012 - Important amendments to Ukrainian
regulations (under FATF recommendations) - - Tighten control over financial operations
- - Raise the amount of transactions subject to
financial monitoring from UAH 80000 to UAH
150000 - - During the incorporation of a Ukrainian
company the founders - legal entities must
disclose their ownership structure up to their
beneficial owners i.e. individuals who are
substantial shareholders in those companies (if
the Ukrainian company changes the owner(s), then
such a disclosure is not required). - - Restrictions regarding insider information
- - Counteracting financing of terrorism
- - Restrictions on manipulation on stock market
- - Ukraine adopted the list of countries
cooperation with, which is not recommended (2
countries Iran and Democratic People's Republic
of Korea) - 28 October 2011 Ukraine was removed from FATF
black list for improving its AML/CFT regime
and - - Ukraine is no longer subject to FATF
monitoring and cooperates with European Committee
MONEYVAL on an ordinary basis - - it is easier to do business with financial
systems of countries labeled FATF-compliant,
(U.S., U.K., etc.) - - Ukraine needs to further improve its
regulations according to new/developing FATF
standards
13ANTICORRUPTION REGULATIONS
14ANTICORRUPTION REGULATIONS
- On 1 July 2011 new anticorruption Laws took
effect -
- Law of Ukraine No. 3206-VI "On the Fundamentals
of Corruption Prevention and Counteraction" dated
7 April 2011 -
- Law of Ukraine No. 3207-VI "On Amending Certain
Ukrainian Legislative Acts Pertaining to
Liability for Corruption Offences" dated 7 April
2011 - New categories of individuals subject to
anticorruption restrictions -
- New kinds of restrictions (gifts, services, etc.)
- New criminal and administrative offences
15INDIVIDUALS SUBJECT TO ANTICORRUPTION
RESTRICTIONS
- 1. Persons authorized to perform
responsibilities of the State or local
self-governed bodies -
- - the President of Ukraine, Ministers,
People's Deputies of Ukraine, Deputies of the
Verkhovna Rada of the Autonomous Republic of
Crimea, Deputies of local councils, Public
servants and officials of local government,
Military officers, Judges, officers and officials
of public authorities, etc. -
- 2. Persons regarded as being authorized to
perform the responsibilities of the State or
local self-governed bodies -
- Officers of public-law legal entities who receive
their salary from the State or local budget -
- Individuals rendering public services (auditors,
notaries, and appraisers, as well as experts,
arbitration managers, independent brokers,
members of labor arbitration tribunals,
arbitrators in the time of performance of these
functions, other persons in cases established by
law) -
- Officials of foreign states, international
organizations -
- 3. Persons who hold permanently or
temporarily positions of organizational-executive
or administrative-economic functions, or the
persons specially authorized to perform such
duties in private law legal entities irrespective
of their corporate form pursuant to the law -
- 4. Officers of legal entities and
individuals - if an unlawful benefit is received
from them or through their involvement by the
persons listed in cl. 1 - 2
16ANTICORRUPTION REGULATIONSMAIN RESTRICTIONS
- prohibition to use official powers with the
purpose of gaining illegal benefit /the
acceptance of a promise / offer of such a benefit
for themselves or other persons - restrictions for the persons authorized to
perform responsibilities of the State or local
self-governed bodies to be engaged in other paid
or entrepreneurial activities (apart from
teaching, scientific, and creative activities,
medical practice, and sports coaching and referee
practices) - restrictions for persons authorized to perform
responsibilities of the State or local
self-governed bodies after resigning from
position - restrictions as to acceptance of gifts
- prohibition to refuse to provide individuals
/legal entities with the information that must be
provided under the law -
- Obligation of government official to submit
declaration concerning the property, income,
expenses, and obligations of financial nature for
the previous year, annually by April 01, at the
place of their employment (service), but this
obligation not applicable to relatives -
- individuals/legal entities are not allowed to
provide goods and services to public authorities
or local self-governed bodies free of charge
17UKRAINIAN TAXES
18UKRAINIAN TAXES
- The Ukrainian tax system is one of the most
burdensome in the world. - In a tax systems ratings, Ukraine is usually
placed well down the list. - The Ukrainian tax system is developing.
- The Ukrainian tax reform is not sufficiently
effective.
19UKRAINIAN TAXES BRIEF OVERVIEW
- Individuals - tax residents are taxed on
worldwide income residency is determined by
several criteria, among them the 183 days
residency requirement. Both resident and
non-resident individuals are taxed at flat tax
rates of 15 or 17 (depending on the level of
income). Shareholder-Relief System tax rate for
dividends - 5 (including dividends from
foreign sources) - Corporate profits are subject to 19 tax in 2013.
The tax rate will be reduced to 16 by 2014.
Various single unified tax options are
available for small and medium size businesses.
Dividends from non-residents currently 19, will
be reduced to 16 (by 2014). Participation
exemption of 0 for dividends from residents and
controlled (non-offshore) non-residents. - Loss carry forward unlimited, no loss carry
back - Withholding tax is 15 (dividends, income from
sale of shares, royalties, interests, certain
other incomes) - No capital gains
- Inheritance tax depends on the object to be
inherited, kinship and residency (0 / 5 / 15) - Tax consolidation provided
- The VAT rate is 20 and is to be reduced to 17
by 2014. No reduced rate - Double Tax Treaty Network (over 65 DTTs)
reduction /elimination of WTH taxation/refund of
extra tax
20DOUBLE TAXATION AVOIDANCE TREATIES
21UKRAINES DOUBLE TAXATION AVOIDANCE TREATIES
Austria France Lebanon Republic of South Africa
Azerbaijan Georgia Libya 2010 Serbia
Algeria Germany Lithuania Singapore
Armenia Greece Macedonia Syria
Belgium Hungary Malaysia USSR DTAA Slovakia
Belorussia Iceland Mexico 2012 Slovenia
Brazil India Morocco Spain USSR DTAA
Bulgaria Indonesia Moldova Switzerland
Canada Iran Mongolia Sweden
China Israel Montenegro Tajikistan
Croatia Italy the Netherlands Thailand
Cyprus USSR DTAA() Japan USSR DTAA Norway Turkey
Czech Republic Jordan Pakistan 2011 Turkmenistan
Denmark Kazakhstan Poland United Arab Emirates
Egypt Republic of Korea Portugal UK
Estonia Kuwait Romania USA
Finland Kyrgyz Republic Russian Federation Uzbekistan
()New Ukrainian-Cypriot DTAA signed on 08.11.2012, not ratified as of this date. Cancels USSR DTAA for Ukraine. Latvia Saudi Arabia 2012 Vietnam
22CYPRUS, THE NETHERLANDS, SWITZERLAND BILATERAL
TREATIES WITH UKRAINE
23CYPRUS, THE NETHERLANDS, SWITZERLAND
BILATERAL TREATIES WITH UKRAINE
AREA CYPRUS The NETHERLANDS SWITZERLAND
Legal assistance in civil cases ?
Avoidance of double taxation of incomes and property ? ? ?
Legal assistance in criminal cases ? ? ?
Promotion and mutual protection of investments ? ?
Readmission of illegally staying persons ? (2010) ? (2010) ?
Combating money laundering and crime ? ? ?
Cooperation in the area of competition policy ?
Legalization of official foreign documents ? ? ?
Kyoto Protocol on climate change ? (2005) ? ?
24CYPRUS, THE NETHERLANDS, SWITZERLAND BILATERAL
TREATIES WITH UKRAINE
AREA CYPRUS The NETHERLANDS SWITZERLAND
Uniform law for bills of exchange and promissory notes ? ?
Economic, scientific, technical and industrial cooperation ? ? ?
Energy community ? ? ?
Cancellation of visas for holders of diplomatic and service passports ? (holders of diplomatic passports only) ? (holders of diplomatic passports only) ?
Culture ? ?
Tourism ?
Trade ? ? ?
International highway service ? ?
Establishment of visa-free regime for entrance into Ukraine ? ? ?
25USSR-CYPRUS AGREEMENT ON AVOIDANCE OF DOUBLE
TAXATION
- In general, old USSR agreements for the avoidance
of double taxation are valid in Ukraine until new
agreements are made and take effect. - the USSR-Cyprus Agreement (signing date
29.10.82) is still in effect - the Agreement is applicable to the persons who
are treated for tax purposes as having permanent
residence in one or both States - the Agreement is applicable to national and local
taxes levied in accordance with the laws of each
State - incomes derived in one State by a person that has
permanent residence in the other State are only
taxable in the first State if derived through a
permanent representative office located there and
only to the extent covering the operations of the
permanent representative office - tax exemptions apply to any incomes that arise in
Ukraine or Cyprus, including dividends, interest,
royalty, property alienation proceeds, etc., that
are remitted from one country to the other one,
except for some taxes levied on individuals and
permanent representative offices incomes - Note On November 8, 2012 the President of
Ukraine has signed the new agreement with Cyprus
on avoidance of double taxation, which will take
effect after the ratification by the Verkhovna
Rada and the Cyprus Parliament. If the parties do
not delay the process and the parliaments of both
states ratify the agreement by the end of 2013,
the provisions of the Agreement will take effect
as of 1 January 2014. Until then, the old
agreement dated 29 October 1982 will be valid.
26PRINCIPAL PROVISIONS OF THE NEW UKRAINE -CYPRUS
AGREEMENT ON AVOIDANCE OF DOUBLE TAXATION DATED 8
NOVEMBER 2012
- Article 5 of the agreement considers the term
"permanent representative office" in accordance
with the OECD standards. Thus any object,
installation project, monitoring activities of
same can have a status of a permanent
representative office (acting enterprise), if the
duration of their activity exceeds 12 months. - The rate of tax on dividends is 5 if the
beneficiary owner owns at least 20 of the
capital of company that pays the dividends, or
the beneficiary has invested at least 100.000
to the company. In other cases the dividends tax
rate will amount to 15. - The interest tax rate amounts to 2.
- The income tax rate for payment of royalty will
be 5 if it refers to the author's scientific
work, any patent, trade mark, secret formula,
information concerning industrial, commercial or
scientific know-how process. In all other cases
the rate of income tax on royalties is 10 (for
example, royalties on films). - The right to levy a tax on the increase of
capital gains resulting in the sale of shares or
any movable property is granted to the State in
which the person who performs the sale is a tax
resident. - The new Agreement includes the latest version of
Article 26 of OECD on exchange of information
that illustrates the commitment of Cyprus to the
internationally recognized standards of taxes and
transparency. However, the Protocol to the
Agreement clearly stipulates all the necessary
procedural steps related to the request on
providing information, therefore providing
maximum protection of the taxpayers from the
possible abuse of this clause.
27TAX INFORMATION EXCHANGE
28TAX INFORMATION EXCHANGE GROUNDS
- Multilateral treaties
- Joint Council of Europe/OECD Convention on
Mutual Administrative Assistance in Tax Matters
(1988) - Agreement between the States-Members of the CIS
on Cooperation and Mutual Aid Regarding
Observance of Tax Legislation and Combating
Infringements Thereof (1999) - European Convention on Mutual Assistance in
Criminal Matters (1959) with additional Protocol
of 1978 - Bilateral Double Taxation Avoidance Treaties (69
countries) - Special Bilateral Agreements With Tax
Authorities - National Regulations (mostly adopted by the State
Tax Administration) - Procedure of Information Exchange Pursuant to
Special Requests - Procedure for Implementing Cooperation Between
Trade and Economic Missions of Ukraine's
Diplomatic Institutions Abroad and the State Tax
Administration of Ukraine
Azerbaijan Lithuania Poland Uzbekistan
Belgium Moldova Slovakia
Estonia the Netherlands USA
28
29TAX INFORMATION EXCHANGE INFOMRATION SUBJECT TO
EXCHANGE
- Types of tax information exchange
- per request
- automated (periodic)
- spontaneous exchange
- simultaneous tax checks
- The following information regarding taxpayer may
be subject to exchange - residence status of an individual or a legal
entity, - taxpayer status of the legal entity,
- income type in the country of origin,
- officially declared revenues and expenses,
- bank information,
- financial reports,
- accounting information,
- information on prices under contracts,
- names and addresses of company management and
employees etc.
30OFFSHORE JURISDICTIONS
31DISINCENTIVES FOR PAYMENTS TO BLACKLISTED
OFFSHORE JURISDICTIONS
- The Ukrainian CPT payer is restricted in
accounting its payments as tax-deductable costs
if those are paid to a company located in a
blacklisted offshore jurisdiction. - Not tax-deductable
- Marketing services/works
- Consulting services/works
- Advertising services/works
- Engineering services/works
- Royalties
- Tax-deductable in the amount of 85 of the
payment - all other payments to a company located in a
blacklisted offshore jurisdiction
32BLACK LIST OF OFFSHORE JURISDICTIONS
British Insular Regions Africa Caribbean Region
Alderney Liberia Anguilla
Guernsey Seychelles Antigua and Barbuda
Jersey Aruba
Isle of Man Pacific Region the Bahamas
Vanuatu Barbados
Middle East Marshall Islands the Bermudas
Bahrain Nauru British Virgin Islands
Niue U.S. Virgin Islands
Central America Cook Islands Grenada
Belize Samoa Cayman Islands
Montserrat
Europe South Asia Netherlands Antilles
Andorra Maldives Republic Puerto Rico
Gibraltar Saint Vincent and Grenadines
Monaco Saint Kitts and Nevis
Saint Lucia
Commonwealth of Dominica
Turks Caicos Islands
32
33TAX LIABILITY
34TAX LIABILITY
- Criminal liability of company official/individual
- Liability threshold 57,350 EUR.
- Criminal fines ranging 1,700 EUR up to 38,636 EUR
- restriction to hold certain positions or
exercise certain activities up to 3 years - confiscation of property
- Not applicable if taxes and fines are paid prior
to the individual being charged - Administrative liability of company
official/individual - Fines up to 34 EUR
- Financial Liability of the company
- Most fines range up to 102 EUR
- Violation of rules of amending tax declarations
- fine - 5 of the amount of tax due reduction
- Lowering of tax dues or increase of the VAT
compensation - fine - 25 of the unpaid tax amount, 50
thereof if repeated - Violation of rules of charging, withholding and
payment of taxes at the payment source - fine - 25, 50, or 75 of the unpaid tax amount
- A penalty (interest) is applied to the undue tax
payments at the rate of 9 yearly
35CURRENCY REGULATONS
36GENERAL FOREIGN CURRENCY REGULATONS
- Overregulated and archaic currency regime
- Foreign currency allowed in economic transactions
of Ukrainian residents with non-residents - Licenses are issued by the National Bank of
Ukraine (NBU) to allow banks and financial
institutions to perform foreign currency
transactions - Registration/prior expertise of certain services
contracts - contract on works/services/royalties the payment
under which exceeds 100,000 EUR requires an
evaluation - loans made to a Ukrainian entity by a foreign
entity, including inter-company loans - 180 days rule - requirement for the return of
currency revenue payments for goods/services
exported by Ukrainian residents must be received
by them within 180 days after delivery of
goods/performance of services. Import of
goods/services, paid in advance by Ukrainian
residents, must be received by them within 180
days after they made the advanced payment. - The above 180-day term is temporarily
shortened to 90 days effective 19.11.2012-19.05.20
13.
37CROSS-BORDER TRANSFER LIMITATIONS
- Individuals may perform only non-trade and
non-investment cross-border transactions without
a license from NBU. - A Ukrainian individual may (without opening a
bank account) - send 15000 UAH (1500 EUR) per bank day
- receive 50000 UAH (5000 EUR) per bank day
- the amount to be received is temporary
increased to 150000 UAH (15000 EUR) per bank day
- effective 28.11.2012 28.05.2013
- A Ukrainian resident must receive an NBU
one-time individual licenses for - placement of currency valuables in bank accounts
abroad - transferring foreign currency for payments in
foreign currency abroad - making investments abroad
- making a loan abroad
-
- A foreign contract on works/services/royalties,
the payment under which exceeds 100,000 EUR,
requires a prior expert evaluation by the State
Information-Analytical Centre for Monitoring
Foreign Commodity Markets.
38DISCLOSURE OF COMPANY BENEFICIARY OWNERS
- Legal entities must disclose their ownership
structure up to their beneficial owners i.e.
individuals who are substantial shareholders (10
and more) in those legal entities, during the
incorporation of a Ukrainian company.
39DUAL CITIZENSHIP
40DUAL CITIZENSHIP IN UKRAINE
- Dual citizenship is forbidden de jure, but is
widely spread de facto. - Ukraine is powerless against the persons of dual
citizenship. - Government believes that dual citizenship problem
threatens national security of Ukraine. - Amendments to the legislation - a distracting
step that does not solve the dual citizenship
problem. The bill that stipulates penalties for
dual citizenship has been adopted by the
Verkhovna Rada on 2 October 2012. However, the
bill has not been signed by the President yet.
On November 2, 2012 the President presented the
Proposals regarding improvement of the bill and
the reasons of the impossibility to sign the bill
in the adopted version. Consideration of this
bill subject to the President's proposals was
postponed for an indefinite period of time.
41FAMILY LAWINHERITANCE IN UKRAINE
42FAMILY LAW ISSUES
- Joint spousal property
- Specifics of joint spousal property disposal
- Recognition of pre-marriage and marriage
agreements - - Existing and future property rights
- - The scope of childrens rights cannot be less
than statutory - - Extremely unfavorable position of a spouse
- Corporate rights
- Foreign companies remedy against marital and
family risks
43INHERITANCE IN UKRAINE
- General inheritance matters
- - Inheritance structure
- - Inheritance types
- - Order of heirs
- - Exercising the right to inherit
- - Inheritance acceptance timeframe
- Inheriting corporate rights
- Recognition and enforcement of judgments
- Minimizing inheritance risks via foreign
structures
44REAL ESTATE
45REAL ESTATE
- Foreign individuals and legal entities have the
same rights as Ukrainian individuals and legal
entities in acquisition of real estate, except
for agricultural land - State Register of Real Estate Property Rights is
operative since 1 Jan 2013 - Moratorium on sale of agricultural land has been
extended - Formalization of titles to real estate
- Taxes
46TRUSTS AND NON-CHARITABLE FUNDS
- Management of property as defined by Ukrainian
law - Trust companies
- Mutual funds in the sphere of construction
- Collective Investment Institutions
- Note a new Law "On Collective Investment
Institutions will restate the current Law "On
Collective Investment Institutions (Unit
Investment Funds and Corporate Investment
Funds) on 1 January 2014. - Consultancy instead of trust management
47RECOGNITION OF DECISIONS OF FOREIGN TRIBUNALS IN
UKRAINE
48RECOGNITION OF DECISIONS OF FOREIGN TRIBUNALS IN
UKRAINE
- Subjects to recognition and execution in Ukraine
are - 1. Decisions of the international commercial
arbitrations made in the territory of other
states than Ukraine, but which are the subject to
execution in Ukraine (i.e. execution of foreign
arbitral awards) based on international
treaties and conventions. - 2. Decisions of courts of the foreign states,
which are subject to execution in Ukraine - based
on international treaties and conventions, or
based on reciprocity.
49BILATERAL AGREEMENTS
- Ukraine has concluded bilateral international
agreements - on legal assistance in civil, family and criminal
cases with Latvia, Lithuania, the CIS countries - on legal assistance in civil and criminal cases
with Vietnam, Georgia, China, Moldova, Mongolia,
Poland, Uzbekistan, Estonia, Cyprus, Cuba, Korea,
Syria, Iran, Germany, Libya, Hungary - on legal assistance in criminal cases with the
Netherlands, Switzerland, Hong Kong, the USA,
Brazil, India, Panama, Egypt - on legal assistance in civil cases with Hungary,
Greece, Macedonia, Turkey, Czech Republic,
Bulgaria, Romania.
50MULTINATIONAL TREATIES
- Multinational treaties signed by Ukraine
- European Convention on Human Rights
- New York Convention on the Recognition and
Enforcement of Foreign Arbitral Awards - European Convention on International Commercial
Arbitration - Convention on the Settlement of Investment
Disputes between States and Nationals of other
States (ICSID Convention) - CIS Agreement on Procedure of Commercial Disputes
Resolution - CIS Agreement on Legal Assistance in Civil,
Family and Criminal Cases
51RECOGNITION OF FOREIGN TRIBUNALS DECISIONS IN
UKRAINE
- Procedure for execution of foreign arbitral
awards - 1. Initiation and carrying out of recognition
and execution procedure. - 2. The courts competent to consider cases on
recognition and execution of foreign arbitral
awards - 3. Decisions of the courts on cases on
recognition and execution of foreign arbitral
awards
52RECOGNITION OF FOREIGN TRIBUNALS DECISIONS IN
UKRAINE
- Procedure for execution of foreign court
decisions - 1. The courts, competent to consider cases on
recognition and execution of foreign arbitral
awards - 2. Initiation and passing of recognition and
execution procedure. - 3. Decisions of the courts on cases on
recognition and execution of foreign arbitral
awards.
53RECOGNITION OF FOREIGN TRIBUNALS DECISIONS IN
UKRAINE
- In June 2012 Ukrainian district court in the Kyiv
City rendered a decision (case No 2601/9578/12)
which deals with important issues of recognition
and enforcement of foreign court decisions in
Ukraine - it is the first recognition and enforcement of
the UK court decision based on the application of
"reciprocity" principle - the Court treated the UK court order as a
"decision of a foreign court" under the Civil
Procedure Code of Ukraine - the Court ruled that possessed jurisdiction over
a dispute because Respondent's assets were
located in Ukraine
54Thank you!