Volodymyr Igonin Unveils Opportunities Ukraine's EU Association Agreement Brings to the Agricultural Business

Vasil Kisil & Partners,
Kyiv, Ukraine, Friday, Sep 22, 2014

On September 18, 2014, Volodymyr Igonin, VKP's Senior Associate of the AgribusinessPractice spoke at the V International Forum "Effectiveness of AgribusinessManagement", organized by the Ukrainian Club of Agrarian Business (UCAB)and AgriEvent. As UCAB's legal partner VasilKisil & Partners law firm has once again acted as the general legal partnerof the forum. 

VolodymyrIgonin highlighted legal aspects related tothe ratification of Ukraine-EU Association Agreement. Even though theapplication of certain parts of the Association Agreement is postponed till2016, since the Government of Ukraine has approved its implementation plan for 2014-2017we can expect that the work on harmonizing and aligning Ukrainian legislationwith the EU would start very soon. Among other things, this harmonization is toreduce the impact of the so-called technical barriers to trade in the fields ofmetrology, standardization, sanitary and phytosanitary measures, testing,market monitoring, certification, accreditation, etc. As the result, Ukraineshould actually adapt international standards. Upon the completion of thisprocess, businesses will be able to rely on the long-awaited permanency of theregulation and know that market "rules of the game" are not bound tochange. This consistency will be secured, in particular, by the prescribedprocedures of the Association Agreement.

According to VolodymyrUkraine has already made the first steps in this direction: a number of EUcompliant regulations have been approved, we've started optimizing the systemof central executive bodies. However, "Ukraine'sagriculture sphere alone has over 40 EU regulations to harmonize with. Andinterestingly enough, studies show that adopting these standards couldfacilitate trade even more than simplifying customs policy would. It willdefinitely help Ukrainian producers enter the European markets. In addition,the removal of technical barriers to trade, along with simplification ofcustoms procedures, transparency and decrease the administrative burden willalso help producers reduce costs and revive foreign trade", - stressedVolodymyr.

In addition to the opportunities transpiring from the AssociationAgreement, Volodymyr pointed out a number of legal risks and challengesassociated with the implementation of the Agreement. Thus, given the amount of necessary amendments to theUkrainian legislation, any uncoordinated changes could lead to legal conflictsand create gaps in regulation that would temporarily complicate the veryrelationship being reformed. Also, in a rapidly changing legal environment apressing issue becomes luck of qualified personnel, both in the stateapparatus, and the private sector. In addition, transitioning Ukrainianproduction to the "European track" in the short-term demands of theUkrainian producers significant investments and expenditures, which wouldultimately pay off in the medium to long term. 

This event is traditionally very popular amongagribusiness players and this year it gathered nearly 300 representatives ofthe largest Ukrainian agricultural holdings, agricultural equipmentmanufacturers, researchers, representatives of the financial sector,economists, legal and investment advisers. Participants of the conferenceagreed that the main issue today is structuring and managing an agriculturalbusiness specifically in the format of an agricultural holding, a large companywith a substantial land bank, as this approach is helping improve theefficiency of agricultural production and strengthens the position of Ukrainianproducers, particularly in the light of the ratification of Ukraine's Associationwith the EU. 

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For more details please contact Klaudia Shevelyuk, Business DevelopmentDirectorTel.: +38044 581 7777

E-mail: pr@vkp.kiev.ua

Aboutthe Firm

Established in 1992, Vasil Kisil & Partners is aUkrainian law firm that delivers integrated legaladvice in banking & finance, mergers & acquisitions, capital markets,antitrust, competition and trade, dispute resolution, tax law,energy and natural resources law, intellectual property law, labor andemployment law, real estate and construction law,as well as PPP, concessions and infrastructure law. Vasil Kisil & Partners isa member of such international professional associations as TerraLex, IBA, andIus Laboris. 

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