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🤝 On March 13, 2024, the webinar "Joint enterprise as a method of cooperation with foreign partners: features, risks and realities" was held.

Olena Shtohryn, managing partner of the law firm Dictio, a member of the Board of Directors of the CBU was the speaker.

In particular, the following themes were discussed during the webinar:

✔️How is "Joint Enterprise" defined by the legislation of Ukraine?

✔️The structure of joint activities

✔️The difference between a joint activity and a joint venture

✔️The most common formulas for cooperation with foreign developers

✔️ Fulfillment of compliance requirements as a tool for attracting foreign investments and investors to cooperation

💰At the beginning of the webinar, Olena Shtogryn reminded the participants that the World Bank's rapid report on damages and needs for the recovery of Ukraine (RDNA 3) was recently published. According to it, the total needs for recovery are $486 billion.

💬"I suggest you look at the figures that the World Bank defines in this assessment as potentially investing in Ukraine. In this way, the business can assess for itself, what are the losses, which sector will need financing in the first place in the future, which international partners can be sought," said the managing partner of the legal company Dictio.

During the webinar, it was also discussed how "Joint enterprise" is defined by the legislation of Ukraine, which normative legal acts regulate it.

📃 Olena Shtogryn noted that it is necessary to understand that a joint venture from the point of view of Ukrainian legislation is not an organizational and legal form. When a Ukrainian company together with a foreign one creates a joint venture, it is an opportunity to choose the organizational and legal form that will be convenient from the point of view of legislation and what are the goals of creating such an enterprise.

In addition, the speaker added that, in her opinion, the classification of joint activity (which can be structured as a joint venture (with the formation of a new entity) or a joint operation (without the formation of a new entity)) is the most understandable and clearly stated - in International Financial Reporting Standard 11 (IFRS 11).

Olena Shtohryn cited the most common formulas for cooperation with foreign developers, and also raised one of the most relevant topics today - what is important to understand in order to attract a foreign investor with his financing and, as a result, create a joint venture, or receive financing from international donors and financial institutions.

Therefore, Olena Shtohryn singled out the list of fulfillment of compliance requirements as a tool for attracting foreign investments and investors to cooperation.

✔️1. The ownership structure of the company must be transparent and understandable for the foreign partner/international organization.

✔️2. The absence of beneficiaries and officials, controllers of the company in the sanctions lists - "sanction purity".

✔️3. Absence of criminal cases, arrests on accounts, company assets/tax liens, etc., bankruptcy procedures, existence of court cases regarding the company's failure to fulfill its obligations (legal due diligence procedure).

✔️4. Implementation/availability of an anti-corruption policy, as well as compliance with its rules and procedures.

✔️5. Implementation of the ESG concept of corporate social responsibility includes factors related to environmental protection, social and corporate governance (Environmental, Social and Governance - ESG).

✔️6. Availability of protection of confidential information, personal data.

✔️7. Passing an independent audit of the Ukrainian company's activities, performed on the basis of the company's public reporting, duly published and approved.

✔️8. Insurance of military and political risks.

For more information about the above list of requirements, joint ventures, the most common formulas for cooperation with foreign developers, the difference between consortia in the understanding of foreigners and Ukrainian legislation, and more, see the full recording of the webinar (Ukrainian language):

📹Facebook: https://www.facebook.com/kbuorgua/videos/255722694291302/ 

📹YouTube: https://youtu.be/AmRNrgv3dhE?si=Qo9gbvfVmswSA_uC 

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