News

J&L Consulting Newsletter – May 5, 2025

·         Ukraine and USA Forge Partnership: A Milestone Agreement on Natural Resources and Reconstruction

·       Supreme Court of Ukraine Summarizes Key Commercial Case Law for March 2025

·       Key Legal and Regulatory Updates in Ukraine – Early May 2025

Ukraine and USA Forge Partnership: A Milestone Agreement on Natural Resources and Reconstruction

In the night of May 1, Ukraine and the USA signed an agreement granting access to Ukraine's natural resources and establishing a Reconstruction Investment Fund. This agreement ensures equal partnership, no debts for Ukraine, protection of national assets, attraction of additional US investments, tax guarantees, and allocation of 50% of the income from new licenses for projects in critical materials, oil, and gas.
Although the minerals agreement between the USA and Ukraine faces numerous bureaucratic hurdles, it has the potential to strengthen bilateral relations. The US Treasury has refrained from predicting the timeline for American companies to extract valuable metals. The Wall Street Journal, citing local officials, suggests that oil and gas projects will be prioritized.
Before any funds are disbursed, the agreement must be ratified by the Verkhovna Rada, and the Reconstruction Investment Fund must be established. Only then can Ukraine attract investors.
"This agreement can expand opportunities for those within the administration who wish to support Ukraine," said Eric Green, former senior national security adviser for Russia under the Biden administration. He added that Trump may continue to share intelligence with Ukraine to protect companies operating in the country.

 Supreme Court of Ukraine Summarizes Key Commercial Case Law for March 2025

The Supreme Court has published a digest of recent case law from the Commercial Cassation Court (CCCU) for March 2025, highlighting legal positions across key dispute categories.

Key findings include:

• Bankruptcy cases:
• Uncontested creditor claims under an agricultural receipt justify opening bankruptcy proceedings.
• Clarified remedies in claims for joint liability of a debtor’s director.
• Military service alone does not warrant automatic suspension of proceedings.
• Competition law:
• Antimonopoly Committee decisions based on invalid transactions require separate judicial assessment.
• Corporate disputes:
• Limitations on shareholder rights during transfer of shares to ARMA.
• Jurisdiction over reinstatement claims for directors dismissed under Article 41(1)(1) of the Labor Code.
• Recognition of fraudulent transfer of assets into a company’s charter capital.
• Land and property law:
• State-owned land with archaeological heritage status cannot be reclassified.
• Communal property cannot be transferred without community or council consent, unless legally prescribed.
• Co-owners of multi-unit buildings may formalize land use for property servicing.

Key Legal and Regulatory Updates in Ukraine – Early May 2025
A series of important legal developments were introduced in Ukraine in late April – early May 2025. Below are the highlights:

1. Inheritance by Foreign Residents:
   The Ministry of Justice clarified the inheritance procedure for heirs residing abroad. The place of opening inheritance remains the decedent’s last residence.
2. Salary Arrears Liability Increased:
   Draft Law No. 9510 passed first reading. It allows employees to suspend work if wages are delayed over 15 days, strengthening protections in insolvency situations.
3. Ukraine–U.S. Economic Partnership Agreement Signed:
   On April 30, an agreement was signed in Washington to establish an Investment Recovery Fund to attract financing and deepen strategic cooperation.
4. Remote Work Regulation Updated:
   Law No. 4339-IX came into force on May 2. It refines regulation of remote/home-based work and introduces changes on business trips for remote workers.
5. Military Service Duty is Universal:
   The Supreme Court ruled that no religious affiliation exempts from military duty during martial law (Case No. 573/406/24, ruling dated April 15, 2025).
6. Labor Relations During Martial Law:
   Law No. 12255-1, passed on May 1, updates the rules on suspending employment contracts and exchanging information during wartime.
7. Unified Qualifications Register Launched:
   Law No. 4353-IX (effective May 2) establishes a Unified Qualifications Register. The state owns all rights to the system and associated software.
8. Simplified Military Reinstatement Extended:
   Law No. 13177 extends the deadline for simplified military return procedures until the end of August 2025.
9. Platform Income Reporting Law Approved:
   The Cabinet endorsed a bill to implement international income reporting for digital platform sellers via amendments to the Tax Code.
10. Apostille Fee Raised:
    MoJ Order No. 931/5 increases apostille service fees. The order will be officially published in the May 2 issue of Official Bulletin of Ukraine.