Ukraine was ranked 1st in Science & Technology Global Contribution by The Good Country Index in 2018, with over 10 tech companies enjoying annual listings in The Global Outsourcing 100. The industry accounts for approximately 200k highly skilled engineers generating more than USD 5 billion in profits and, among others, servicing over hundred Fortune 500 companies and propelling hundreds of millions in investments and venture financings.

Innovation is a driving force of economic growth and welfare. On its part, Ukraine strives to follow the trend. Its international image of an outsource powerhouse has been gradually replaced with a destination that deploys one of the brightest tech minds on the globe and delivers high-end solutions, including for the industrial segment.

The deal-making in the tech sector has been continuously busy.

A number of tech giants launched their R&D centres in the country. In 2018, Ukrainian start-ups attracted over US$350 million expanding their operations overseas, whilst in 2019, the VC and PE investments into the Ukrainian IT sector exceeded US$ 500 million in more than hundred transactions. The momentum has also been followed with a series of M&As totalling US$ 460 million in value, with one of the deals closed for over US$ 160 million.

In the Telecom industry, the end of 2019 witnessed a landmark M&A deal, ranked among top-25 European largest transactions, where a Ukrainian subsidiary of the foreign operator was sold to an overseas operator.

Ukraine has liberalised its FX laws cancelling previous limitations applicable, among others, to distribution of foreign currency dividends and a mandatory sale of foreign currency proceeds. The legislation has become further aligned with FATF Recommendations and the EU AML regulations. It applies a risk-based approach for financial monitoring, raises the bar for the value of transactions subject to monitoring and requires disclosure of ultimate beneficial owners. Other adopted amendments enable insolvency of individuals, but not only of companies or sole proprietors, and are overall designed to secure creditors’ rights.

Our lawyers carry deep expertise in the industry. They have worked on multiple mandates, varying from structuring one of the largest in the CEE e-commerce ventures to raising and framing financings, as well as established lasting relationships with prominent start-ups.

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