Ukraine

Why trade or invest in Ukraine?

Despite the difficult political and economic climate, Ukraine continues to offer opportunities in a broad range of sectors. Many of these involve co-operation with Ukrainian companies and authorities, and require Western financial investment.

But! Growth potential.  The European Bank for Reconstruction and Development (EBRD) predicts a with 3.0% GDP growth in 2016.  The Ukrainian government reached an agreement with its private creditors in August on restructuring USD 18 billion of Ukraine’s debt. This satisfied a major condition of the International Monetary Fund’s (IMF) bailout agreement.

Ukraine as a developing country has great economic potential. A relatively cheap local labor force and favorable climate conditions, make it very attractive for the foreign investor. The main trade/investment partners of Ukraine are Russia, Turkey, Germany, Poland, Italy, Turkmenistan, and United States. Ukraine exports ferrous and non-ferrous metals, fuel, petroleum products, chemicals, machinery, and imports energy and some types of machinery and equipment.

Ukraine has a broad (if aging) industrial base which is strong in ferrous metals and chemicals. This includes much of the former Union of Soviet Socialist Republic’s (USSR) space and rocket industry and a well-developed defence and security sector.

Ukraine is a major producer of agricultural products such as:

• grain
• sunflower seeds and oil
• sugar beet
• corn

Ukraine is not an easy market to enter.

The most straightforward option to start exporting your product into Ukrainian market is to appoint a distributor. This should be a local company with importing experience and be registered as an importer with the local customs service.  Previously local retail chains were not interested in direct imports. However, this practice is now changing as businesses try to offer the best cost margins to their customers. This follows local currency devaluation and increased import costs.

Ukraine is a member of the World Trade Organization (WTO).

Some particularities of the Ukranian legal system you should know

Ukraine is not a party to the European Patent Convention.

Ukrainian legal system by its nature belongs to the Romano-Germanic legal family (the continental law system).  This means that it is based on a pandect system, where the main legislation sources are codified laws.  It also has a well structured hierarchy of normative acts.  Normative legal acts in Ukraine have different legal validity depending on the law-making subject and the state body which issues it.

The year 2003 was marked by the completion of the civil legislation reform – the new Civil Code that is based on the market principles was adopted on January 16, 2003 and came into force from January 1, 2004.  Furthermore, the Economic Code was adopted along with the Civil Code, which also regulates private relations and defines the role of the State in the business.  It is worth mentioning that the Economic Code reflects the Soviet-type rules and regulates the private relations in the other way than the Civil Code does and therefore contradicts with the provisions of the new Civil Code

As Ukrainian legal system is code-based there are a number of codified laws in the main spheres of national legislation.  Among such codes the main ones are the following: the  Civil Code, the Economic Code, the Criminal Code, the Land Code, the Family Code, the Customs Code, the Code of Civil Procedure, the Code of Criminal Procedure, the Labor Code  ,  the Air Code  , etc.     

Whom we work for

A-LAW Ukraine desk has been providing legal support to clients in different areas, such as real estate issues, corporate and civil (family) law, traffic law, migration law, liability law and debts recovery (bankruptcy, administrative fines).

An in-depth approach of the different legal aspects of cross border cooperation and trade, commercial agency, distribution and franchising of a wide variety of products exported from or imported into Ukraine have been assessed through A-Law dedicated team.