Lawyer Association ALARIUS and its managing partner Viktor Surnyk were included in the rating “Customer's Choice. TOP-100 lawyers of Ukraine — 2023” from “Yurydychna Gazeta”

The All-Ukrainian professional publication “Yurydychna Gazeta” published the rating “Client's Choice. TOP-100 lawyers of Ukraine — 2023”, where ALARIUS AG and its managing partner Viktor Surnyk were among the best in the categories corporate law/M&A and construction/real estate

Managing Partner of ALARIUS JSC Viktor Surnyk spoke in detail about the challenges faced by the legal market, current trends and prospects in the real estate market, development of corporate law practice and recent legislative changes in a detailed publication specifically for “Yurydychna Gazeta”

— How was 2023 for the company? What areas are you focusing on now? Have you been able to regain the pre-war pace of work?

— The year turned out to be difficult, but successful, because for the first time since its creation the company took part in national ratings and immediately entered the list of leading law firms according to the “TOP-50 Law Firms of Ukraine” and “Client's Choice. TOP-100 lawyers of Ukraine”. In addition to our leading industries (construction/real estate, corporate law/M&A), the main areas today are litigation and criminal practice. Most of the working time of our team is occupied by Pro bono — legal support of contracts (including foreign economic) for the purchase of military equipment and equipment. So, as of the beginning of 2024, we can state the return of the load in the pre-war volume.

— What problems do customers face most often? Is there a trend? What things have become more?

— The issues of protecting the rights and freedoms of clients in criminal proceedings, corporate rights, investments, as well as collection of funds under contracts of various legal nature are relevant. The number of requests for protection from criminal prosecution and business protection has increased.

— Supporting which services/projects do you remember the most? Which projects were the most difficult? Why? Tell us more about your experience.

— The most remembered case is the protection of investors' rights in the economic jurisdiction. There were several cases with a similar subject of dispute, namely the invalidation of investment contracts. In particular, one of the cases was transferred by the Board of the Economic Court of Cassation for consideration by the Joint Chamber of this court, which caused the suspension not only of the cases that we were accompanying, but also of other cases throughout Ukraine with a similar subject matter of dispute. The judges of the united chamber appealed to the Scientific Advisory Council of the Supreme Court on the subject of the dispute (the legal nature of the contract, etc.). But even after receiving the conclusions, scientists could not put an end to this case and transferred it for consideration to the court of first instance, which led to the adoption of similar decisions in other cases with a similar subject matter. Therefore, the case that our company is pursuing can become a precedent and influence the creation of a new judicial practice that will help to thoroughly and comprehensively protect the rights of investors. The trial continues.

— What problems and challenges did the legal market face in a full-scale war? What to expect in 2024? What are the prospects in the post-war period?

— In my opinion, a significant problem was the outflow of personnel. Fortunately, we managed to keep our team. But in the face of new challenges, we need to expand and are faced with a shortage of personnel in the legal market. Like all Ukrainians, in 2024 we expect to win a full-scale war and do everything we can to accelerate it. As for the prospects in the post-war period, this may depend on many factors, including political stability, economic recovery, issues of peacekeeping efforts, etc. The legal market is likely to be involved in the recovery and settlement of legal issues related to the consequences of hostilities.

— Please tell us about current trends in the real estate market, which should be taken into account in the work of a lawyer.

— Currently, there are several current trends in the real estate market that can affect the work of a lawyer. First, the use of blockchain technology and digital platforms to conduct real estate transactions is becoming more common. This can affect property verification processes, reduce bureaucratic procedures, and improve transaction transparency. Secondly, with the growing interest in sustainability and energy efficiency, lawyers working in the real estate sector may face new legal issues related to the certification of energy efficiency of buildings and the implementation of green technologies. And third, global investors are increasingly interested in the real estate market. Lawyers should monitor changes in legislation related to foreign investment, as well as understand the peculiarities of international agreements.

— How has real estate investment changed after two years of full-scale war in Ukraine? What to expect in 2024? What are the prospects in the post-war period?

— Let's start with the fact that the acquisition of real estate in peacetime is a great responsibility. However, according to the study on the most desirable investment instruments in 2023, real estate has become one of the three most popular answers. Given that builders and developers have resumed work on construction sites, and the dynamics they are showing, demand is growing. However, unfortunately, now the volumes of real estate sold and the indicators of attracting investments do not reach the pre-war ones. There are objective reasons for this: the threat of physical destruction of real estate, unreliable developers, instability, low purchasing power of the population and businesses.

In spite of everything, in 2024 we expect investments in Ukrainian businesses that operate transparently and pay taxes, and this in turn will contribute to the post-war reconstruction of the country. The upcoming accession to the European Union definitely makes Ukraine more attractive for investment. Therefore, investing in real estate, even in a period of uncertainty, can be a winning option. As for the prospects in the post-war period, they will depend on many factors, such as the stabilization of the political situation, the recovery of the economy, the settlement of the conflict, etc. History knows many countries that experienced wars, and after them became successful countries with highly developed economies, in which real estate prices increased significantly. The transition to postwar time may provide new opportunities for the recovery of the real estate market, as well as pose new challenges related to the restoration of infrastructure and public services.

— How is the practice of corporate law developing (in the context of the impact on both domestic business and the activities of foreign investors)?

— In recent years, the practice of corporate law has become one of the key areas of business legal services both in the domestic and in the world context. Several key trends have an impact on domestic business. In the light of increasing globalization, companies are increasingly faced with the need to comply with a variety of legal norms and standards in different countries. The practice of corporate law encompasses consulting on global standards, compliance with the laws of various jurisdictions, and risk management. The rapid development of technology is bringing changes to the structures of corporations, the management of companies and the ways in which they interact with shareholders. Corporate lawyers must be aware of the latest technological trends and developments, as well as legislative changes, in order to provide effective legal support. Companies are becoming increasingly interested in integrating ethical and sustainable practices into their operations. This concerns compliance with corporate responsibility standards, risk management in accordance with the principles of sustainable development and demonstrating social responsibility. Today, corporate lawyers are widely involved in mergers and acquisitions (M&A) processes, which involve consulting on deal structure, preparation of documentation, risk assessment and regulatory compliance.

An important issue in the field of corporate law is increased attention to the protection of the rights of participants (shareholders). It concerns the protection of the interests of minority participants (shareholders), ensuring transparency and participation in the management of the company. Of course, the war also significantly changed standard practice and raised issues of crisis management, strategic planning and adaptation to changing market conditions.

— According to your observations, which legislative changes justified themselves, and which (or lack of which) disappointed in 2023? What issues in your practice require the fastest regulatory settlement?

— On June 10, 2023, the Verkhovna Rada of Ukraine adopted the Law of Ukraine “On Protection of Consumer Rights” (draft law №6134). The initiator of the bill was the Cabinet of Ministers of Ukraine. This legislative act is European integration, aimed at bringing national legislation on consumer protection closer to the legislation of the European Union and harmonizing the system of consumer protection in Ukraine with EU principles, approaches and practices.

With regard to regulatory changes, in order to resolve the issue of exchange of worn foreign currency banknotes, the Board of the National Bank of Ukraine on June 20, 2023 adopted Resolution No. 75 “On Amendments to the Regulations on the Structure of the Foreign Exchange Market of Ukraine, Conditions and Procedure for Trading Foreign Currency and Banking Metals on the Foreign Exchange Market of Ukraine”.

In accordance with this resolution, p. 33 Regulation on the structure of the foreign exchange market of Ukraine, conditions and procedure for trading foreign currency and banking metals on the foreign exchange market of Ukraine, approved by the Resolution of the Board of the National Bank of Ukraine No. 1 of January 2, 2019, is set out in the following version: “Banks, non-banking institutions are prohibited from refusing customers to exercise currency exchange operations with foreign currency banknotes, which in design and protection elements fully correspond to the samples and descriptions given on the pages of official websites of central/national banks of foreign countries, the authenticity of which is confirmed using the appropriate equipment. Bank, non-banking institution verify the authenticity of foreign currency banknotes using banknote counters/sorters with the function of controlling ultraviolet, infrared and magnetic protection and/or devices (detectors) that provide image magnification, visualization of ultraviolet and infrared protection and magnetic control”.

Also, the Resolution of the Board of the National Bank of Ukraine dated June 20, 2023 No. 75 abolished the list of signs of minor wear of banknotes. Therefore, with all foreign currency banknotes without exception, except those that are significantly worn or damaged, currency exchange operations must be carried out. As the NBU points out, this makes it impossible to influence the human factor on determining the degree of wear of a banknote. The rejection of the Law on Lobbyism brings some disappointments, since Ukraine's path to the European Union and NATO directly depends on it.

Regarding my legal practice, I expect the adoption at the legislative level of an act that will settle the issue of compensation for damage caused by military aggression of the Russian Federation. I highly appreciate the work already done by the state in this area, but the unambiguity and orderliness of this issue, unfortunately, is one of the most acute problems for both business and society in general.

>— What life values are you guided by in your professional life? How to maintain your own efficiency now?

— Compliance with high standards of honesty and ethics, professional competence, continuous training and development, taking responsibility for their decisions and actions. Now the profession of lawyer stands out especially as a means to achieve justice and make a contribution to the public welfare. In the face of unexpected, sometimes protracted alarms and shelling, it is difficult to organize your working hours and distribute tasks efficiently. It is important to be socially connected: interaction with colleagues, exchange of experience and support from collaborators in the professional community contribute to efficiency and shared well-being.

— What are your plans for the future, which areas of work will be a priority in the near future? What tasks and goals do you set for yourself?

— Expansion of staff and attraction of new clients, legal support and protection of clients from criminal prosecution, protection of business, in particular, but not only, regarding compensation for damage caused by military aggression of the Russian Federation. Achieving even better results in 2024. The team of AO ALARIUS and I will personally continue to do our best to ensure that our defenders at the front are provided with everything they need and feel legally protected after the end of the war in European Ukraine, where the rule of law prevails.