Crisis Outcome
“The year 2009 saw a dramatic rise in the number and overall amount of arbitration cases brought to permanent arbitration institutes in Ukraine (mainly to the International Commercial Arbitration Court at the Chamber of Commerce and Industry of Ukraine). The majority of such cases are, as always, sale and delivery disputes with non-payment and non-delivery due to hardship being the main issue. Some important corporate disputes were also heard as were some large-scale JV disputes. It is worth noting that the crisis has put an end to a number of a long-term sale, franchising, JV agreements giving birth to important cases. Following the above pattern a number of large-scale corporate disputes between non-resident shareholders but related to assets located in Ukraine went to LCIA, ICC, SCC and other major international arbitration centers, as the investment community still regards Ukraine as unsuitable for large-scale disputes for a number of reasons. This attitude not only not changed but worsened with the outbreak of the crisis,” Andrey Astapov, the managing partner of AstapovLawyers outlined. “Agriculture remained one of the most stable sectors of the Ukrainian economy, but as the world market was highly price — turbulent the number of GAFTA (Grain and Feed Trade Association) and FOSFA (Federation of Oils and Seeds) arbitrations involving Ukrainian parties has also risen. This is largely due to non-fulfillment of obligations on a highly volatile market for purely price considerations. Fortunately, the Ukrainian government has not introduced any export barriers, which was the case on a number of previous occasions (2003 and 2008),” he explains.
The Vasil Kisil & Partners team comes highly regarded for its scope of arbitration work in 2009, having conducted 15 arbitrations in the world’s major arbitration centers (ICC, LCIA, SCC), the ICAC at CCI of Russian Federation, the ICAC and MAC at UCCI. The total number of disputes exceeded USD 100 million. The subject matter of the disputes included sale of goods, corporate rights transactions, various services, to name but a few: advertising, consulting, telecommunication services, as well as shipping and maritime. Within the latter category of the disputes the team successfully represented the Ukrainian Danube Shipping Company in several MAC arbitrations. It also conducted ad hoc arbitration in London under LMAA terms and represented clients in enforcement proceedings of Ukrainian and foreign arbitral awards and setting aside proceedings before Ukrainian courts. Tatyana Slipachuk, FCIArb, the head of the practice, acted as arbitrator in several arbitration proceedings under the Arbitration rules of ICC, SCC, ICAC and MAC at the Chamber of Commerce and Industry of Russian Federation, Arbitration Court of the Economic and Agrarian Chambers of the Czech Republic. Oleg Alyoshin, partner, and Olena Perepelynska, senior associate of the firm, also come highly recommended for their expertise in international arbitration and efficient leading of arbitration projects.
Magisters enjoys the reputation of a very strong practice in the country. The firm successfully represented the interests the state of Ukraine and many state-owned enterprises like Naftogaz of Ukraine, Energoatom, Ukravtodor and UkSATSE in disputes between investors and the state. Serhii Sviriba, partner and head of international arbitration and litigation practice, is widely recognized on the market.
AstapovLawyers enjoyed a busy year for its international arbitration practice. Led by managing partner Andrey Astapov the team handled various projects: representation of major Ukrainian metallurgical complexes against defendants from Hong Kong and Liechtenstein; Donetsk Electrometallurgical plant against MRHK Limited; the major Russian trader of grains ROSINTERAGROSERVIS against a buyer from Egypt; a Ukrainian producer of metallurgy products in an arbitration process against a customer from Hong Kong, etc. The company has extensive experience of representing clients in FOSFA and GAFTA (London), the International Commercial Arbitration Court at the RF Chamber of Commerce and Industry, the ICAC and MAC at UCCI, etc.
Roman Marchenko, a senior partner of Ilyashev & Partners and Denis Rabomizo were engaged in representation client Illichivsk Ship Repair Yard in disputes over debt and damages recovery at the London Arbitration Court.
The Kiev office of Baker & McKenzie represented, simultaneously with lawyers in Moscow and Stockholm, a major Ukrainian publicly-owned oil and gas company in a multimillion dispute under the Rules of the Arbitration Institute of the Stockholm Chamber of Commerce with regard to its JV activities in the Ukrainian oil and gas sector. The Kiev team also acted as Ukrainian counsel for a German company in ICSID arbitration for protection of investments into joint activity regarding maritime vessel in the seaport of Kerch, Ukraine. The practice is led by partner Svitlana Romanova and includes associates Olha Vorozhbyt, Olga Shenk and Taras Aleshko.
In 2009 Konnov & Sozanovsky represented the interests of Ukrainian company Montazhnaladka LLC at the International Commercial Arbitration Court attached to the Chamber of Commerce and Industry of Ukraine in a dispute with a German entrepreneur pertaining to the recovery of an advance payment made for a truck under the supply agreement. Other issues successfully exercised by the firm include representation interests of Tupperware LLC (Russian Federation) in proceedings at the International Commercial Arbitration Court attached to the Chamber of Commerce and Industry of Ukraine in a dispute with a Ukrainian party on recovery of overdue payment for delivered goods and advising its Ukrainian client active in the area of publishing business on issues of Ukrainian law relating to arbitral proceedings instituted under VIAC Arbitration Rules and on the settlement agreement and, in particular, on the settlement agreement reached by the parties to the dispute. Borys Lobovyk is a highly recommended specialist in the field of international arbitration.
The international arbitration practice at AGA Partners is led by the firm’s managing partner Aminat Suleymanova. The practice is active in international arbitration bodies and trade associations like the ICC, LCIA, GAFTA, FOSFA and others. The firm is particularly focused on handling claims based upon English law and continually advises on a variety of issues related to international commercial arbitration.
International arbitration is a core service of INTEGRITES. In 2009 INTEGRITES lawyers represented Polish export agency KUKE S.A. in the International Arbitral Centre of the Austrian Federal Economic chamber in a deal estimated to worth almost USD 1.5 million with famous Belarus electronic manufacturer Gorizont. The firm also successfully represented a leading global electronics manufacturer in the Arbitration Institute of the Stockholm Chamber of Commerce. The most successful cases to be resolved in 2009 were at the China International Economic and Trade Arbitration Commission (CIETAC). INTEGRITES team included Anna Tyshchenko and Olena Varenyk.
ANK represented Arcelormittal Ambalaj Celigi Sanayi ve Ticaret Anonim Sirketi in a dispute versus ARGO with regard to recovery of a debt according to the agreement of delivery of metal in the sum of USD 3.5 million; represented Cement LLC in a dispute versus a Spanish company in regard to debt recovery. The team of lawyers involved in international arbitration practice included Andrey Selyutin, Maxim Krapivka and Elena Pushchenskaya.
The team of CMS Cameron McKenna under the leadership of senior partner and head of the commercial practice group Olexander Martinenko, represented a major Middle East energy company in an international commercial arbitration in Stockholm against a major Ukrainian oil and gas company; a major Ukrainian business group in an international commercial arbitration in London under LCIA procedural rules in a joint venture dispute with its UK/Canadian partner and a client in an international commercial arbitration in Geneva regarding the failed share purchase transaction of a major office centre in Kiev.
Volkov Koziakov & Partners, traditionally known for its expertise in the dispute resolution field, represented the interests of one of the biggest international grain traders in its litigation against a Canadian company in the Kiev International Commercial Arbitration Court. Olga Galaka, a senior associate, and Oleksiy Volkov, managing partner, worked on that particular project.
The young and ambitious team led by Oleksandra Pavlenko, Pavlenko & Poberezhnyuk provided legal support for Tubex Commodities AG in the international arbitration process of Tubex Commodities AG versus Zasyadko Coal mine regarding recovery of a debt of approximately USD 2 million according to a contract on the supply of pipe shell and tubular goods.
The Salkom law firm protected the interests of a state-owned company involved in the import and export of products according to a lawsuit sounding in damages by a Russian airline.
Vladymyr Zubar and Svetlana Panova of Jurline were involved in protecting the interests of Odessa Port in a litigation with the company International port service limited as well as in protecting Fedcominvest Monaco SAM in litigation with JSC Sumykhimprom.
Alexandrov & Partners, in the guise of Ruslana Muzychko and Oksana Kryzhanivska, advised a client on the recovery of a debt by filing a suit to arbitration by Paris CCI.
Gennady Tsirat is a main expert in international arbitration of Yurvneshservice.
International Law Offices, which is based in Odessa, assisted in some cases for LMAA and international maritime arbitration. Nikolay Melnykov, Artem Skorobogatov, Tatyana Nepomnyaschaya, Natalya Myronshychenko are all legal specialists in the corresponding practice of the firm.