With the ambitious plan to create in Ukraine the most powerful IT hub in Central and Eastern Europe, the Government of Ukraine has established Diia City – a special legal framework for the IT industry, in summer 2021. Currently, the legal and organizational basis for the operation of Diia City is being developed and improved. It is expected that the project will be fully launched already in the first quarter of 2022.
A New Era for Ukrainian Taxpayers
This year marks the start of a new era for all Ukrainian taxpayers – both corporate and individuals. Ukraine lawmakers up to – and especially in – 2021 made unprecedented efforts to implement into local law and the network of double tax treaties major recommendations and principles which went far beyond the minimum base erosion and profit shifting (BEPS) action plan Ukraine committed to in 2017.
Diia City in a Nutshell
In 2021, the President of Ukraine had signed two laws establishing a special legal and tax regime for the digital economy called Diia City. It has become effective from January 1, 2022, after the law shaping the taxation regime of Diia City has become effective.
Recent Changes in Taxation during Martial Law
On April 5, 2022, the Law of Ukraine “On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine on Improving Legislation for the Period of Martial Law” No. 2142-IX dated March 24, 2022 (“Law No. 2142”) came into force.
Judicial Crisis in Ukraine: Is There a Way Out?
An effective judiciary forms a cornerstone of a successful state that upholds the rule of law.
Top Trends in Ukrainian Antitrust Law Enforcement: 2022 Forecast
2021 was indeed an active year for the Antimonopoly Committee of Ukraine (AMCU). It seems that antitrust enforcement did not slow down during another pandemic year but even, in fact, accelerated. The agency closed a number of investigations, having imposed million-dollar fines on players from a variety of markets. Below you may find the top trends in Ukrainian antitrust enforcement. They are worth keeping an eye on, especially for companies having or planning a business presence in Ukraine.
Sayenko Kharenko Advises French Development Agency on EUR 300 Million Credit To Support Ukraine
Sayenko Kharenko has advised the French Development Agency on a EUR 300 million credit facility agreement to service Ukraine's financial, economic, and humanitarian needs.
Ukraine: Taxes
On 07 March 2022 two vital laws regulating tax and reporting obligations during martial law in Ukraine became effective:
Protecting Rights to Own Movable Property
The owner’s rights are guaranteed by the Constitution. However, a person can still be restricted or stripped of enjoying its title to the property if so provided by the statutory law passed by Verkhovna Rada. Mandatory transfer of property for the needs of defence or other public emergencies is called requisition and such transfer must be subject to prior and fair compensation, except “where extraordinary circumstances require otherwise”.
On a New Adventure: Patricia Gannon Announces Platforum 9
CEE Legal Matters readers will likely be familiar with Patricia Gannon as one of the founders of Karanovic & Partners. Since her withdrawal from the firm (reported by CEE Legal Matters on September 21, 2020), Gannon ran her own "holistic strategic advisory business" (as reported on October 12, 2020) and, recently, she announced she is working on a new social media app for lawyers – Platforum 9. We caught up with her to learn more about her new project.
Mergers and Concerted Actions During Martial Law
On March 30, the Antimonopoly Committee of Ukraine (the AMCU) adopted Recommendations on some issues related to submission and consideration of applications for permission for concerted actions, mergers of economic entities during martial law (Recommendations).
CMS Appoints Four New Partners and Two Equity Partners Across CEE
Following CMS's recent global promotion round, Nevena Radlova, Michal Andruszkiewicz, Cristina Popescu, and Olga Shenk were promoted to Partner, with Partners Gabriela Staber and Andrea Potz becoming Equity Partners.
Payments Under Contracts
From February 24, 2022, under martial law, the banking system operates in a special mode.
The AMC’s Guidelines on the Merger Control Procedure During the Time of the Martial Law in Ukraine
On 30 March 2022, the Antimonopoly Committee of Ukraine (the “AMC“) adopted the guidelines on the merger control procedure during the time of the martial law in Ukraine (the “Guidelines“).
Ukraine: Force Majeure and Contractual Obligations
On 24 February 2022, the Russian Federation launched a military aggression against Ukraine. This became the basis for the imposition of the martial law in Ukraine from 24 February 2022, with further extension until 26 April 2022.
Ukraine: Peculiarities of Labour Relations under Martial Law
24 March 2022, Law of Ukraine "On Arrangement of Labour Relations under Martial Law" No. 2136-ІХ dated 15 March 2022 (the Law) entered into force.
Confiscation of Russian Property in Ukraine
One of Ukraine’s legal responses to Russia’s full-scale aggression was a legislative initiative aimed to confiscate the property of the aggressor state. On 3 March, the Ukrainian Parliament put this initiative into practice by adopting the Law of Ukraine “On Basic Principles of Confiscation of Property Held in Ukraine by the Russian Federation and its Residents” (“Law”), and on 10 March, the Law was signed by the President.
Ukraine v Russian Federation: ICJ Orders Russia to Cease Military Aggression in Ukraine
On March 16, the International Court of Justice (ICJ) delivered its order on Ukraine’s request for indication of provisional measures against Russia.