Konnov & Sozanovsky — Advising Various Businesses

The food industry is one of the most rapidly developing branches of Ukrainian industry. For today, the food industry covers over 15 % of the general production in Ukraine. The positive changes occurred due to the substantial foreign and domestic investments in food industry, implementation of international experience. The novelties in production technologies helped to raise the level of products’ quality.

Food industry of Ukraine is traditionally the major supplier of basic foods, such as sugar, salt, oil, dairy products, alcohol, confectionery, etc. Among the leading sub-sectors of the food industry are meat and dairy processing, sugar refining, flour milling and cereals production, oil extraction and starch and molasses production.

The sector has considerable production, research and labor potential, thus trough the last years international food companies found the market of Ukrainian food industry very attractive. Presently, the share of domestically produced food products on the Ukrainian market has grown to 95%. The constant growing of the number of food manufactures and supermarkets also shows considerable development of this brunch that stays one of the most attractive for foreign as well as domestic investors.

Lawyers of Konnov & Sozanovsky advise clients involved in food industry on various issues including business start-ups and business optimization schemes; tax planning, receipt of necessary permits from the State authorities, employment relationship. Our lawyers provide legal services with respect to drafting of the agreements, in particular lease agreements, franchising agreements, loan agreements etc, and negotiating the terms and conditions thereof. We also have considerable experience in protection of intellectual property and unfair competition matters related to food industry.

The Russian food industry, being one of the backbone elements of economy, has demonstrated rapid development trends for the past several years. This was caused by systematic modernization of production methods by industry participants and their intention to increase and ensure the quality of food at all stages of production under ever-increasing competition.

However, at 2008 year end the Russian food industry fell under the impact of the global economic meltdown restricting its growth. In such economic environment the most crisis-resistant sectors are those subsidized by the government and specializing in the production of essential food products, namely crop production/grain processing, flour and bread production, production of diary products, baby and diet food.

According to the findings of the Russian food industry survey 2008, conducted by one of the account companies, the majority of food industry companies view the existing economic situation as a source of opportunities for expanding their market share in the food sector of the Russian economy, enhancing working capital management practices and improving the efficiency internal processes.

In respect of future development of the food industry of Russia and its growth forecasts today most experts and analysts largely stick to conservative estimates. However, conservatism in estimates does not make the Russian food industry less attractive for foreign players planning to continue investing in production development and promoting products under their own trademarks in 2009. Major Russian players have demonstrated the same active approach to investing and promoting proprietary brands.

Konnov & Sozanovsky’s lawyers render different types of legal services to their clients, working in the food industry sector, including:

  • advising on issues of carrying on business activity within the territory of Russia by non-residents, on terms and conditions, as well as peculiarities of such activity;
  • support in the conclusion of commercial transactions by enterprises of the food industry sector and signing of the agreements on beneficial terms for the client and in his interests;
  • performance of the legal expertise of foreign economic contracts, including contracts regarding import of the industrial equipment on the terms of leasing;
  • advising on issues of responsibility for the quality of products;
  • advising on the customs duties optimization, customs regulations, and export-import transactions;
  • development of tax optimization schemes and investment plans;
  • preparation of loan agreements with non-residents;
  • performance of the legal pre-sale due diligence of enterprises for potential foreign investors;
  • reorganization of legal entities and optimization of relations between groups of food industry companies;
  • incorporation of enterprises with foreign investments and support of joint ventures.

 

Leading Lawyer Key Practice Office Position  
Yaremchuk, Helen Corporate law Kiev (Ukraine) Partner
Konnov, Sergei Corporate law Kiev (Ukraine) Senior partner
Gluhovskaya, Tatiana Intellectual property law Kiev (Ukraine) Đartner
Pokotylo, Alexey Commercial Law and Contarcts Kiev (Ukraine) Partner