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On 28 April 2022, Resolution of the Government of Ukraine “On Amendments to Certain Resolutions of the Government of Ukraine on Notaries’ Activity and Functioning of Unified and State Registers Held by the Ministry of Justice, during Martial Law” No. 480-2022-p, dated 19 April 2022 (“Resolution”), entered into force, amending several previously adopted resolutions (as described in the Legal Alert, dated 29 March 2022).

Ukrainian Parliament currently considers bill No 7232 that increases tax rates for Ukrainian businesses related to Russia (the “Measure”). The aim of the bill is to discourage corporations from Russian business activities. If successful, it should decrease Russian fiscal revenue, which will leave Russia with less funds available for warfare. There is, obviously, a huge social request and support for such measures. However, actual effect of the bill is far not that definitive.

On 24 February 2022, the National Bank of Ukraine, in response to the introduction of the martial law in Ukraine initially imposed for 30 days but subsequently extended currently until 25 May 2022, issued Regulation No. 18 on banking system operations during martial law to prevent unproductive capital outflows from the country and to ensure the reliable and stable functioning of Ukrainian banking system during the time of war.

Due to the armed aggression of the Russian Federation against Ukraine, not only military and infrastructural objects of the state and territorial communities but also private objects of Ukrainian and foreign business are being destroyed. 

According to the CEE Legal Matters CEE By The Numbers report, between 2019 and 2021, Ukraine saw a large decrease in the number of ranked law firms and lawyers at ranked firms. While in 2019 the number of Ukrainian law firms ranked by Chambers & Partners and Legal 500 was 95, in 2021 the same number decreased to 69. Similarly, the number of ranked-firm lawyers decreased from 1,579 in 2019 to 1,338 in 2021. The decreasing trend is particularly visible in comparison to other CEE countries.

In 2021 the renewable energy market in Ukraine has been in a crisis mode compared to the booming years of 2018 and 2019. Following the legislative changes in 2020, which decreased the feed-in tariff (FiT), the market for solar projects has been very low, except for small solar projects for households and solar projects implemented by industrial consumers to produce electricity for their own use. Primarily, such industrial consumers are aiming to reduce costs for electricity and improve their market position before the introduction of the Carbon Border Adjustment Mechanism. Notwithstanding the weakening of the market for solar projects, we have observed a steady growth of wind projects. The 2020 FiT changes have decreased the wind tariff moderately and provided a cut-off day for wind projects under the FiT on December 31, 2022. This has boosted the construction of several large wind projects in 2021 and 2022. In 2022 we anticipate commissioning of almost 1 gigawatt of wind capacity, which is much higher than in 2021.

Ukraine Knowledge Partner

AVELLUM is a leading Ukrainian full service law firm with a key focus on Finance, Corporate, Dispute Resolution, Tax, and Antitrust.

Our aim is to be the firm of choice for large businesses and financial institutions in respect of their most important and challenging transactions.

We build lasting relationships with our clients and make them feel secure in new uncertain economic and legal realities.

We incorporate the most advanced Western legal techniques and practices into our work. By adding our first-hand knowledge, broad industry experience, and unparalleled level of service we deliver the best results to our clients in their business endeavours. Our partners are taking an active role in every transaction and ensure smooth teamwork.

AVELLUM is recognised as one of the leading law firms in Ukraine by various international and Ukrainian legal editions (Chambers, The Legal500, IFLR1000, The Ukrainian Law Firms, and others).

Firm's website: www.avellum.com

 

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