S&P Investment Risk Management Agency Expands Cooperation with Foreign Partners and Official European Representations in Ukraine.

The year 2017 was marked by the slogan: “Switzerland-Ukraine – Friendly Nations and Reliable Business Allies.” Throughout the year, S&P Investment Risk Management Agency actively collaborated with the diplomatic representation of the Swiss Embassy in Ukraine and the Swiss business community.

As part of this fruitful cooperation, the agency initiated a series of events aimed at providing advisory support to representatives of major Swiss companies operating in Ukraine. The primary goal of S&P Investment Risk Management Agency was to help foreign investors strengthen their companies’ positions in the Ukrainian market and avoid potential unlawful actions by government authorities. Consequently, these events addressed pressing topics such as business operations in Ukraine, investment protection, potential conflict scenarios with tax authorities, Swiss values of reliability and their possible application in Ukraine, and much more.

The end of the year was marked by a significant event in cooperation with the Swiss side. S&P Investment Risk Management Agency contributed to the creation of a special edition of LDaily, an informational and analytical business publication with a legal focus. The agency became an official partner of the SPECIALIZED SWISS EDITION – a special issue dedicated to the 25th anniversary of diplomatic relations between Switzerland and Ukraine.

One of the key materials in the issue, focused on the peculiarities of Swiss business operations in Ukraine, was an exclusive interview with the Ambassador Extraordinary and Plenipotentiary of Switzerland to Ukraine, Mr. Guillaume Scheurer. In this candid conversation, Mr. Scheurer shared his impressions from two years of working at the embassy, discussed urgent matters, reflected on Polish-Swiss relations, ways to enhance Ukraine’s political image and investment attractiveness, Ukrainian and Swiss values, the Ukrainian people, beautiful places in the country, and other fascinating insights.

Domestic regulatory authorities are inventing new ways to create problems for businesses—sometimes in quite creative ways.

Let me tell you about a recent precedent involving the interaction between a major cargo owner and the State Environmental Inspection of Ukraine.

Initial Scenario

Imagine you are the owner of a large cargo— in this case, corn grain. Your counterparty on another continent is already expecting delivery.

According to current legislation, this type of cargo is not subject to environmental control at customs if the checkpoints are equipped with automated systems for monitoring the movement of radioactive substances and nuclear materials. Radiological control of such goods is only conducted if they emit radiation while passing through the scanning frame.

If your cargo successfully passes through the automated control system at the port—the “frame”—it means your goods are not radioactive and, therefore, cannot be subject to claims, at least on that basis. Your cargo is on the vessel, and you are calmly waiting for its departure.

“Radioactive Cargo”

Suddenly, the inspection service marks the shipping documents (manifest) with a note indicating negative results from the radiological control, stamping it with “Radiological control import/export prohibited.” As a result, customs refuses to process the shipment.

The cargo owner is baffled—how did a ban on export due to radiological control failure appear on the manifest when the cargo had already passed inspection during loading? On top of that, the shipowner starts demanding compensation for downtime losses, and counterparties send formal complaints due to delays in corn delivery.

Only after the cargo owner officially inquired with the State Environmental Inspection about the grounds for the radiological control failure stamp did the situation begin to clear up. It turned out that the State Environmental Inspection had no actual claims against the cargo. Instead, the export ban stamp was placed because the vessel carrying the goods allegedly violated environmental protection laws. According to the regulatory authority, the ship had polluted the country’s territorial waters. In short: “The inspection has no claims against the cargo, but since there are environmental concerns regarding the vessel, we placed this stamp.”

This issue was handled as a dispute between the shipowner and the cargo owner, but it did nothing to resolve the main problem—the vessel remained stuck in port, while both the cargo owner and the shipowner suffered enormous losses.

One must give credit to the “ingenuity” of the environmental inspection. In order to detain the vessel, they skillfully manipulated terminology, ensuring that customs had no legal right to release the cargo from Ukraine.

“Creative” Manipulation of Concepts

In Ukraine, the State Environmental Inspection conducts several types of control. The first is radiological control, which was formally carried out in our case and directly concerned the cargo. The second is environmental control of the vessel, which has no relation to the radiological inspection of the cargo. Failure to pass this control should in no way result in a “Radiological control import/export prohibited” stamp in the corn owner’s manifest.

Under current legislation, the State Environmental Inspection has the right to check territorial and maritime waters for compliance with permissible pollution concentration standards. Such an inspection is only justified if, during the discharge of isolated ballast from a vessel, visible floating particles or traces of oil, oil-containing substances, or other pollutants appear in the discharge area.

In our case, the environmental inspection conducted a ballast discharge inspection near our vessel without any visible cause, seemingly to block cargo shipment. Following this, in the presence of a port representative, inspectors compiled an act of water sample collection. Notably, the port representative stated in the act that no visible oil particles or traces were observed, meaning the document itself was baseless and unlawful.

Based on this act, officials drafted a protocol with measurements of water composition and characteristics, claiming that the collected samples exceeded permissible limits for iron and petroleum products. The legality of this inspection and the presence of actual pollution are highly questionable, and ultimately, only a court can decide on this matter.

However, the fact remains that the act was issued, and nothing could be done about it in the short term. Yet, this document merely confirmed a violation of environmental laws by the vessel. This should have only resulted in an administrative violation protocol and an environmental damage assessment—not a cargo export ban or a restrictive stamp.

It was clear that the State Environmental Inspection’s goal was not to compensate the state for environmental damage but to detain the vessel and impose financial losses on all parties involved. As for other, more obvious but unspoken motives—everyone could read between the lines.

Understanding that time was our main adversary, we carefully considered which tools would allow us to resolve the situation as quickly as possible. And we found one. I can’t disclose the details, but I will say this—we did not go to court, as that would have been inefficient. Any legal proceedings would have dragged the conflict out for months.

Although we managed to get the ship released in three days, even this short delay resulted in huge losses for our client. It is highly doubtful that customs officials were unaware of this “Operation Barbarossa” plan, and by refusing to process the cargo, they were simply “following orders.” Everything pointed to coordinated actions among the involved agencies.

Unfortunately, we must acknowledge that the system of regulatory authorities has not changed—it still operates against businesses. Personal interests continue to take precedence over the country’s economic development and investment potential.

S&P Investment Risk Management Agency Becomes the General Partner of a Masterclass by One of the World’s Top Business Gurus

With the participation and support of S&P Investment Risk Management Agency, an exclusive masterclass by Kjell Nordström — a renowned Swedish economist, author, and one of the world’s leading business thinkers—is taking place today in Kyiv.

For over 25 years, Kjell Nordström has been working with international businesses, advising multinational corporations and government institutions on globalization, corporate strategy, and business development. He was among the first global business gurus to identify the emergence of the era of creativity in business.

His book, Funky Business: Talent Makes Capital Dance, written in the early 2000s, predicted many aspects of modern global economic development. The book became an international bestseller, earning Nordström the reputation of a business futurist.

In Kyiv, Kjell Nordström will share insights with business owners and executives on how to succeed in the ultramodern world (read: the world of technology).

“If you acknowledge that the future has already arrived and want to grow in the next 5-10 years, you need the right strategy and the skill to think ‘from the future.’ To succeed in the ultramodern world, you must follow FAANG (Facebook, Amazon, Apple, Netflix, Google). The goal of today’s masterclass is to provide you with a deep understanding of the modern business environment—how massive technological changes impact companies—and to highlight the emerging system of new values,” the speaker noted.

Opening the event, Mykola Syutkin, founder of S&P Investment Risk Management Agency, emphasized in his welcome speech that such events clearly highlight the huge gap between the business environment in Ukraine and the direction in which global business is moving.

“Business in Ukraine is focused on survival, not creation. Sometimes, I feel like our country is still living in the times of Ancient Greece, where local aristocrats, declaring themselves descendants of Heracles, claimed a divine right to indulgence and violence. Today, modern Ukrainian ‘Heraclids’ in government offices and law enforcement agencies continue to devour businesses and intimidate what entrepreneurs are building in this country.

However, the sheer number of Ukrainian entrepreneurs, company executives, and progressive thinkers gathered here today proves that Ukrainian business is interested in global trends and strategies—and is ready to set them in this country.

As long as we continue to come together, as long as renowned speakers visit us, and as long as Ukrainian businesses choose growth over survival, Ukraine has every chance of being integrated into the global innovation landscape—where there is no place for ‘Heraclids’ at all.” — Mykola Syutkin

The organizer of Kjell Nordström’s master class in Kyiv was KA Group Agency.

On November 3, the founders of the S&P Investment Risk Management Agency conducted the author’s master class for the representatives of the Swiss business community in Ukraine. S&P Investment Risk Management Agency experts told representatives of Swiss companies about scenarios of potential conflicts with tax bodies, as well as how to minimize the risks of doing business in our country.

A separate block of the master class was devoted to various nuances of conflicts with the law enforcement agencies. Experts of the S&P Investment Risk Management Agency identified the most common tools which law enforcement agencies often use to manipulate business.

According to S&P Investment Risk Management Agency experts, it is impossible to fully insure against a conflict to a law-abiding enterprise, but it is possible to minimize damage if certain conditions are observed.

“The successful outcome of the conflict 100% depends on the pre-completed ” homework “. To achieve this is entirely within the power of any business, it is enough to conduct a purposeful preparatory work. Having completed the “homework”, the company will not only be able to recover quickly after a conflict with the security forces, but also acquire an “inconvenient” image, which will reduce the number of “visits” by law enforcement agencies` officers in the future, “the speakers of the S&P Investment Risk Management Agency summarized.

«S&P Investment Risk Management Agency» owns the exclusive copyright of the information in this article. The author has the sole right to control the use of this material. It means the prohibition of using this information without our consent. The term “information” means texts, comments, photos, images, and other materials. Any use of the information or any part of this article without the written permission of the author is prohibited. The term “use” means copying, adaptation, re-writing, modifications, etc. In the case the irregularities are detected, the author has the right to copyright protection in accordance with the procedure established in Article 50-53 of the Law of Ukraine «On Copyright and Related Rights».

On October 20, Mykola Syutkin spoke to representatives of small and medium-sized businesses at the first Get Business Festival. The founder and CEO of S&P Investment Risk Management Agency shared insights with entrepreneurs about modern corporate raiding and ways to counteract it. He also discussed how to avoid critical mistakes in the early stages of business development that could later lead to its loss.

Mykola Syutkin emphasized that 90% of the mistakes entrepreneurs make when starting a business are legal in nature. These mistakes create opportunities for interested parties to seize businesses quickly.
“Today’s corporate raiders are no longer just targeting large enterprises and assets. Raiding in Ukraine has now extended to small businesses. If you are developing a micro, small, or medium-sized enterprise and generating stable income, believe me, you are already being considered as a target. The only way to protect yourself from raiders is to avoid making mistakes when launching your business and to ‘play by the rules’ throughout your operations,” he stated in his speech.

The S&P Investment Risk Management Agency founder outlined the key mistakes entrepreneurs make both at the start and during business operations. These include:

• Launching a business without obtaining all necessary permits,
• Relying on verbal agreements instead of formal contracts,
• A lack of legal awareness, and more.

According to Mykola Syutkin, one of the main reasons these mistakes occur is the absence of a legal advisor who can explain their potential consequences. Understanding that many startup entrepreneurs cannot afford expensive lawyers or asset protection consultants, S&P Investment Risk Management Agency invested in the creation of a specialized legal platform, Lawyer.ua.

Yesterday, Kyiv Post once again brought together executives from the largest Ukrainian and international companies for the twelfth Kyiv Post CEO Breakfast. As always, S&P Investment Risk Management Agency and DHL partnered with the event.

The main topic of discussion was taxes and their administration. The discussion was moderated by Natalia Osadcha, co-founder of S&P Investment Risk Management Agency.

Присутствующий на встрече с бизнесменами и.о. Главы Государственной фискальной службы Украины Мирослав Продан рассказал об изменениях, которые были сделаны в части процедуры администрирования налоговых и таможенных платежей. По словам господина Продана, процесс сбора налогов правительством стал более прозрачным, а возмещение предпринимателям НДС значительно упростилось. В то же время, главным для ГФС сегодня остается дальнейшее активное усовершенствование процедуры администрирования уплаты налогов, а также разрешение процессуального коллапса с полномочиями Налоговой милиции.

Все участники встречи согласились, что в налоговой сфере за последнее время действительно произошли значительные улучшения. Однако, ключевыми нерешенными вопросами остаются многочисленные проверки, а так же обыски Налоговой милицией, которые все так же, сопровождаются изъятием техники, документов и имущества. Бизнесмены подтвердили, что количество таких проверок крупных компаний в последнее время увеличилось, что свидетельствует об остроте вопроса и необходимости скорейшего определения полномочий и законности проведения следственных действий со стороны этого органа.

Кроме того, у представителей международного бизнеса в Украине вызывает недоумение тот факт, что страна декларирует приверженность европейским стандартам законности и верховенства права, но в то же время оставляет действующим орган, полномочия которого вообще отсутствуют на уровне законодательства. Речь идет о той же Налоговой милиции.

«Я благодарна за возможность модерировать такую оживленную дискуссию, которая отразила существующие сегодня опасения и ожидания предпринимателей. Изменить бизнес и инвестиционную среду в стране можно только изнутри. Все без исключения руководители украинских и иностранных компаний сошлись во мнении, что инвестиционный климат в Украине улучшится только тогда, когда государство перестанет рассматривать частный бизнес как объект взаимоотношений, начав относиться к нему как к равноправному партнеру. А этого у нас в стране пока нет», – прокомментировала Наталья Осадчая.

«S&P Investment Risk Management Agency» обладает исключительными авторскими правами данную статью. Автор имеет исключительное право контролировать использование данного материала, что означает запрет на использование данной информации без его согласия. Под информацией понимаются тексты, фото, рисунки, другие материалы. Любое использование материалов с данной статьи без письменного согласия автора запрещено. Под использованием понимается копирования, адаптация, рерайтинг, модификация и тому подобное. В случае выявленных нарушений автор имеет право на защиту авторских прав в порядке, предусмотренном ст. 50-53 Закона Украины «Об авторском праве и смежных правах».

• • On October 13, the S&P Investment Risk Management Agency office hosted another closed meeting of diplomatic representatives from the Embassy of Switzerland in Ukraine and executives of the largest Swiss companies operating in the country.

    As part of the Swiss Business Meeting, business leaders discussed the specifics of doing business in Ukraine, investment protection, Swiss values of reliability, and their potential application in Ukraine.

    Opening the meeting, the Ambassador of Switzerland to Ukraine, Mr. Guillaume Scheurer, emphasized the importance of creating such platforms for the Swiss business community to discuss cases and practical aspects of operating in Ukraine. He highlighted a successful example of collaboration between a local investment risk assessment company, the Business Ombudsman’s Office, and the Swiss Embassy in protecting the interests of a foreign investor in a conflict with the state. This referred to a recent case involving the Swiss company Risoil.

The Business Ombudsman of Ukraine, Algirdas Šemeta, was also present at the meeting. He spoke about the UNIC (Ukrainian Network of Integrity and Compliance) initiative, which was launched in May of this year.

This initiative is aimed at companies that operate based on transparency, honesty, and openness, thereby promoting the development of responsible business practices in Ukraine.

Natalia Osadcha, co-founder of S&P Investment Risk Management Agency, addressed Swiss business leaders, explaining the reasons behind conflicts with the state, how to identify them, approach conflict resolution correctly, and ultimately emerge victorious. She also shared strategies for minimizing risks when doing business in Ukraine.

In particular, Natalia Osadcha highlighted key mistakes entrepreneurs make when facing a conflict situation, which could lead to the loss of assets and business:

• Failure to implement preventive measures
• Management errors, which cause conflicts in 80% of cases
• Ignoring the conflict
• Misidentification of the conflict situation
• Incorrect risk assessment and the wrong choice of tools (PR, government relations, crisis communication, legal strategy, business protection, etc.)

S&P Investment Risk Management Agency expresses gratitude to the Ambassador of Switzerland to Ukraine, Mr. Guillaume Scheurer, for facilitating the organization of this exclusive meeting. We also thank the owners and CEOs of Swiss companies operating in Ukraine for sharing their real-life experiences of doing business in the country “without censorship.”

The founders of S&P Investment Risk Management Agency, Mykola Siutkin and Nataliia Osadcha, participated as speakers at the most creative business event of the year, Business Wisdom Summit 2017.

In their speech, they addressed the question of whether Ukrainian business can transition from a “toxic” and corrupt environment to building a new ecosystem in Ukraine.

Deeply ingrained behavioral models prevent Ukrainian entrepreneurs from building an ideal business and interacting effectively with government structures, believes Mykola Syutkin.

“Unfortunately, a businessman in Ukraine never knows what will happen to him tomorrow. He constantly has to negotiate with someone, wait for something, and fear for his assets.”

At the same time, Nataliia Osadcha emphasized that here in Ukraine, there is a parallel world where foreign companies operate strictly within the legal framework, using entirely lawful methods to defend their rights.

Why does it work for them but not for businesses with a “Ukrainian face”? The reason lies solely in mental perception and the willingness of businesses to play by the rules themselves. These are the rules established at the legislative and legal levels—rules that work both ways: for businesses and against those who unlawfully abuse their power. These are the rules that, once followed, allow businesses to grow rather than merely survive.

According to the founders of S&P Investment Risk Management Agency, the transition from a toxic environment to a healthy ecosystem in Ukraine is possible. The number one rule for Ukrainian businesses in this regard is to fully utilize the mechanisms and tools provided by the current legislation.

Together with its clients, S&P Investment Risk Management Agency is shaping a new, non-toxic essence of business-government relations.

“By using the same tools within the existing legal framework, we are building a completely different, sustainable world. In this world, legislation works, business sets its own rules of the game, feels protected, and gains subjectivity in its interaction with the state. Hence, rule number two – make an internal decision about which world I choose to live in. This is purely a matter of our choice,” concluded Nikolay Syutkin in his speech.

Mykola Siutkin, Founder and CEO of S&P Investment Risk Management Agency. Published exclusively for Novoye Vremya.

How Ukrainian Business Can Change the Country by Starting with Itself

For more than 20 years, modern Ukrainian business has been operating under rules established long before its emergence. How did corruption begin? Initially, entrepreneurs sought quick solutions to various issues and convinced officials to make minor violations or so-called “concessions.” Officials agreed, and the issues were resolved. Over time, business demands evolved into “I want this today,” leading to an increase in “rates” among officials. Eventually, it became nearly impossible to conduct business-government relations without corruption. Officials began setting “price lists,” turning the bureaucratic system into a commercial structure dictating how much a business must pay and for what. The most striking part? Businesses continue to pay.

This system of state-business relations has become the norm in Ukraine. What once began as a businessperson’s way of thanking an official for a favorable deal has now become an expected payment at the highest levels of power. The businesses that originally established these corrupt practices 20 years ago no longer exist, but their rules remain. When new entrepreneurs or officials enter the system, they simply follow the established playbook. The Ukrainian paradox is that those who created the system are gone, yet the system still thrives.

Two Perspectives on the Same Reality

Analyzing the essence of Ukrainian business presents two contrasting perspectives.

The first is the familiar narrative of complaints about a dysfunctional state, corruption, flawed legislation, and the challenges of dealing with government agencies. Companies that were established many years ago—when Ukraine was still in its formative years—continue to operate under the old system. They conduct business according to the familiar corrupt rules, where one side continues to offer bribes and the other continues to demand them, unable to imagine an alternative.

Fortunately, alongside this outdated system, a different reality is emerging—one where things, though imperfect, are beginning to function properly. In this world, businesses utilize the legal framework to its fullest potential, and corruption is absent simply because companies refuse to play by unlawful rules. This marks the rise of a new ecosystem—one driven by a different mindset and behavior, with a growing number of both local and foreign investors choosing to operate within it.

The Same Tools – Radically Different Results

Let me give you an example. A foreign company approached us with a request to develop a legal strategy using the mechanisms of Ukrainian legislation to recover over 300 million UAH in VAT refunds as quickly as possible. Within three weeks, the task was completed, and the client received the full amount in their account. We demonstrated in practice that by operating strictly within the legal framework and utilizing the mechanisms available under Ukrainian law today, it is possible to achieve maximum results in the shortest time. And all of this was done using the very legal system that many claim does not work in our country. The real question is: who has actually tried?

Together with our clients, we are helping to shape a new, “non-toxic” business environment in Ukraine. Put simply, while using the same tools, we are building an entirely different and sustainable ecosystem.

It’s important to emphasize that this is entirely a matter of choice—businesses themselves decide which system they want to exist in. It takes courage to step out of the familiar way of doing things, to stop playing by the old rules, and to create a demand for real change—a transition from the corrupt world everyone is used to into a new, sustainable system.

Navigating the Rapids of Ukrainian Business

This applies to Ukrainian companies. But there is another category—foreign investors—who are accustomed to operating in an ethical business environment. They come to Ukraine unaware that there is a system in which they are expected to “pay to play.” And believe me, they want to build the same transparent and ethical environment for themselves here in Ukraine. Our role is to show, through practical examples, that such a “non-toxic” ecosystem can exist in our country just as it does elsewhere.

Throughout history, there have always been pioneers—bold individuals who discovered new routes, jumped into boats first, and grabbed their paddles to navigate the wild rapids before anyone else. Imagine the thrill they must have felt! Business works the same way. Ukraine is a vast territory full of potential and opportunities. The pioneering foreign companies that enter the Ukrainian market—despite corruption, imperfect legislation, and difficult government relations—are not only capable of predicting demand and taking risks, but they also find excitement and satisfaction in what they are building here. It’s comparable to the adrenaline rush of a newcomer plunging into a powerful mountain river—thrilling yet dangerous.

However, history shows that most newcomers who rely solely on luck and lack proper preparation end up failing. I firmly believe that to avoid this, one needs a guide—a mentor who identifies risks, provides warnings, offers direction, and gives expert advice. Think of it like a local rafting instructor who teaches a beginner how to navigate the river safely and actually enjoy the ride.

In business terms, successfully navigating the “wild mountain river” of the Ukrainian market requires deep knowledge of the terrain. With an understanding of local nuances, an experienced guide, and the courage to take the plunge, businesses can not only enter and thrive in a new emerging market but also actively contribute to transforming the country’s business ecosystem. And that is the ultimate success.

Every year the International Conference gathers a large number of representatives of the public sector, business and social organizations.

This year, “The Tiger Conference” gathered more than 350 participants from around the world, 24 speaker among them.

Among the key issues on which the discussions took place, stood out the issues of transparency of legislation and separation of powers of the government. During the discussion of economic topics in Ukraine, the speakers drew attention to the importance of the fight against corruption and the shadow economy. Participants talked about the problems of energy and subsidized prices for electricity and came to the conclusion that Ukraine must ensure such pricing, which would stimulate production and efficiency. In matters of leadership agreed on the fact that government leaders need to focus their efforts on the creation of unity and common vision of the future.

S&P Investment Risk Management Agency with the support of which the conference was held, emphasize the importance of such an event which helps to coordinate and integrate the efforts of the representatives of different branches of government and business at solving of current economic and legal issues in Ukraine.

«S&P Investment Risk Management Agency» owns the exclusive copyright of the information in this article. The author has the sole right to control the use of this material. It means the prohibition of using this information without our consent. The term “information” means texts, comments, photos, images, and other materials. Any use of the information or any part of this article without the written permission of the author is prohibited. The term “use” means copying, adaptation, re-writing, modifications, etc. In the case the irregularities are detected, the author has the right to copyright protection in accordance with the procedure established in Article 50-53 of the Law of Ukraine «On Copyright and Related Rights».

The project has been developed during this year by thirteen leading law firms on a pro-bono basis under the auspices of U.S.-Ukraine Business Council (USUBC).

S&P Investment Risk Management Agency is one of the project’s co-authors.

On October 30th, 2015 at the second conference of the American-Ukrainian Business Council, about 100 representatives of the legal, business and diplomatic community, civil society, academia, the Government, the National Bank and the Presidential Administration of Ukraine gathered to discuss the proposed reforms. The conference highlights included keynote speeches from the U.S. Ambassador Pyatt.

The mission of the project: the modernization of the existing legal system – replacing it with a brand new, modern, fair, civilized and service-based legal and governance system.