Ukraine has long been called “the bread-basket of Europe,” and for one excellent reason: its fertile, black soil. The estimated value of this treasure is anywhere between 40 and 80 billion dollars. The only problem with investing in such an obviously profitable business was an artificial bureaucratic/legislative barrier commonly known as the “moratorium on alienation of farm land” (the “Moratorium”).

From a purely legal perspective, there is no such term as “raid” in the Tax Code. All the necessary forms, legal grounds and procedure for carrying out inspections of the subjects of entrepreneurial activity, as well as the procedure for execution of documents per results of such inspections, are regulated by the Tax Code of Ukraine. From a practical perspective, however, tax inspection visit can quickly escalate into a battle for your company’s survival.

After years of paralysis, Ukrainian business-related legislation is undergoing major changes. For instance, a new tax code came into effect in the New Year, and we can already hear the protests associated with the proposed new labor code. Meanwhile, completely undetected, a new law has quietly entered into force on January 1, 2011, entitled the Law of Ukraine No. 2297-VI “On Protection of Personal Data”, dated June 1, 2010 (hereinafter the “PDP Law”).

For a while, it seemed like any and all M&A transactions in Ukraine have ceased to exist. Only recently did the Ukrainian M&A activities finally pick up, mostly due to Russian companies coming into Ukraine through Cyprus. Significantly, they all complied with the basic rules for acquiring Ukrainian companies, which are clearly set forth in the Law “On Joint Stock Companies” and related legislation on antimonopoly rules, taxation, etc.

Looks like the Yanukovich government is finally turning its attention to the Ukrainian taxpayer (physical and legal entities alike). Is that good news or bad? To answer this question, we provide you with a brief analysis of the new-and-improved draft Tax Code that is currently under consideration.

Import-export basically involves a signed contract and having a partner in Ukraine. Your goods are shipped to Ukraine and, hopefully, you will eventually get paid for it, per terms of your duly executed agreement. That is the simple legal essence of all import-export transactions. From a timing standpoint, when setting up your import-export transactions in Ukraine, you can either go slowly or you can go fast.

Two weeks ago Frishberg & Partners held a round table on "Foreign Investment in Ukrainian Agriculture." We are pleased to share with you a tranof that highly informative event (you may follow the link below). Our speakers included Mr. Jens Bruno, who works with an agricultural holding company "Grain Alliance" in Ukraine and Mr. Roman Fedorowycz, is an ex-founder, CEO and land acquisition manager for Ukrainian Agrarian Investments Ltd.

As you know, all foreigners must have a “foreign work permit” in order to legally work in Ukraine. Until recently, all one had to do was simply file the necessary documents and then patiently wait for three months. However, the Cabinet of Ministers recently passed Resolution No. 322, which will surely cause controversy among the foreign business community.

Only a year ago it seemed that prices on the real estate market in Ukraine would continue to skyrocket without end. Not surprisingly, one of the most profitable businesses involved landlords who rented their premises (residential or non-residential) to the highest paying tenants.

With food prices rising across the globe, adventurous foreign investors can find excellent business opportunities in Ukrainian agricultural sector despite (or perhaps due to?) the global economic crisis. Known as “the breadbasket of Europe”, Ukraine still boasts enormous land reserves that can grow various grains, seeds, fruits and vegetables. Plus livestock. And due to the crisis, at last everything and everyone is available for sale or rent at rock-bottom prices.

Most importers applauded Ukraine’s entry into the World Trade Organization in May 2008, which resulted in a decrease of import duty (including the duty for the automobiles) from 25% to 10%.

Admittedly, the current economic crisis has dealt a severe blow to the foreign business community in Kiev. As a result, most companies are taking radical anti-crisis measures in order to survive. And cutting labor costs is at the top of everyone’s list.