CURRENT ISSUE (December 2019)

In focus – Oil & Gas

Production sharing agreements are used in many countries around the world. This mechanism was first used in Bolivia in the early 1950s and then in Indonesia in the 1960s.

Expert Opinion

Future of Production Sharing Agreements in Ukraine: Expectations vs. Reality

Marta Halabala, Olena Sichkovska

According to a production sharing agreement, one party, Ukraine (the State), appoints the other party, the investor, to prospect for, explore and extract mineral resources in designated subsoil area(s) and to perform the agreement-related works for a specified period of time, while the investor undertakes to perform the assigned works at its own cost and risk, with further compensation for the costs and receipt of payment (remuneration) in the form of a portion of the profit from production. Such definition of production sharing agreements is provided for in the Law of Ukraine On Production Sharing Agreements (the PSA Law).

In Re

Features of Signing Long-term Oil and Gas Contracts with Ukraine

Rostyslav Nykitenko

Today, the external economic relations between the states are formed primarily through the oil and gas sector. Ukraine, given its territorial position, is an important transit hub through which oil and gas trade between Europe and Asia is conducted.

State-owned National Joint Stock Company Naftogaz of Ukraine is the leading enterprise of the fuel and energy complex, one of the largest Ukrainian companies, and is actively involved in the formation of commercial relations between Ukraine and other countries.

Ukraines Emerging Renewables Market

Adriana Kryveshko

Renewable energy has, by now, become a household term in Ukraine. The capacity of renewable energy (RES) projects in Ukraine has grown by 3,968MW between 2015 and Q3 2019. Total capacity growth in Q3 2019 alone was 2,661 MW. The total sum of investments to construct such 3,968 MW of power plants was approximately EUR 3.4 billion.

Establishment of Contractual Relations on New Electricity Market of Ukraine

Andriy Syvak

The segments of the new electricity market in Ukraine provided for by the Law of Ukraine On the Electricity Market, as balancing, ancillary services segment, “one day in advance”, intra-day and bilateral contracts, obligatory conditions of participation in which for individuals, who are non-consumers, are contracts that ensure the functioning of such a market, should have come into effect from 1 July 2019 in Ukraine.

News

Deals

AVELLUM advised Metinvest

INTEGRITES advised ÜMITLI on construction of solar PV plants in Ukraine

Naftogazs Eurobond offering

Cases

Company of UkrBud group got AMCU to cancel 127 million fine imposed for collusion

Court rejected claim filed by Privatbank against Dniproavia

Supreme Court sided with Supreme Court removes ban on sale of Prominvestbank

Draft

Parliament upheld draft law on financial monitoring in first reading

Step taken towards abolishing state monopoly on alcohol production

Land market set to start operating in 2020

Draft law on cryptocurrency legalization submitted

Plastic bags to be banned from 2022

Law digest

President signed law on ratification of US tax treaty

Parliament approved law on gas transmission network separation from Naftogaz

National Bank raised tariffs on cash provision to banks

Law on protection of intellectual property during customs clearance of goods signed

Ministry of Justice opened up single register of entrepreneurs in full

The chamber

AmCham Ukraine Thanksgiving Black Tie Dinner and Award Ceremony 2019

The American Chamber of Commerce in Ukraine held its traditional Thanksgiving Black Tie Dinner and Award Ceremony 2019 in Kyiv on 16 November. For the fifth year in a row, the American Chamber of Commerce recognizes organizations, projects and individuals who have made an outstanding contribution to the development of a favorable business and social environment in Ukraine or promoted Ukraine internationally. Representatives of the Chamber member companies named those who they would like to thank.

Biznews

Oil & Gas

Denmark granted permit for Nord Stream-2 construction

M&A

Google acquired Fitbit, fitness tracker manufacturer

International Monitoring

Doing business-2020: top of the rating

S&P raised Kyivs credit rating

Moodys confirmed Ukraines rating and improved outlook to positive

Banking & Finance

Uber aims to enter financial services market

Ukraine to get EUR 900 million from EBRD & EIB for road building

Telecommunications

Acquisition of Vodafone Ukraine

Internet

Google to impose stricter rules on political adverts

Manufacturing

Swiss company relocates plant from Poland to Ukraine

Cover Story

Clear Understanding

The Ukrainian energy sector is perhaps one of the most turbulent in light of regulatory changes and challenges ahead for its key stakeholders, population and the Ukrainian state. Tenders held recently for Production Sharing Agreements revived the interest of international energy majors seeking not only profitability but clear understanding of policy incentives, a stable competitive environment and unfailing understanding that their investment is secure at the highest level. Dr. Alexey Kot, managing partner of Antika Law Firm, outlined the opportunities present in this sector and shared his concerns on pressing issues emanating from the perspective of the energy business.

Venue

On the Path of Big Transformations Strategies, Plans and Struggles

With the evolving role of the legal profession and expanding internationalization of legal services, the function of regional professional forums in supporting multicultural discussion is gaining more importance. The IBA ECA (Europe Caucasus Asia) Forumhosted by Georgian firms took place on 31 October 2 November 2019 in Tbilisi.

Crux

Legal Digest

Last month was rather rich in legislature-changing activity, and some of these actions caused strong waves of discussion, particularly the so-called Unbundling Law and Draft Law No. 2233, both of which caused quite noticeable changes in the energy field. Other substantive legislative acts are the governments Drafts On Regulating Gambling and No. 2179 On Preventing and Countering Legalization (Laundry) of Proceeds of Crime, Financing Terrorism and Financing Proliferation of Weapons of Mass Destruction.
The UJBL editorial team asked experts to provide some comments on these legal issues.

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