Foreign Bank interest security for trade financing in Ukraine

In late 2015, the European Bank applied to Interlegal for analysis of its own financing schemes upon the goods purchase in Ukraine and for interest security by means of pledge.

Scheme analysis detected several risks concerning absence of the Bank control over disposal of the goods. The Bank’s attention was drawn to flaws in pledge of movables in Ukraine and to absence of the Ukrainian laws governing the concept and application of Forwarder’s Certificates of Receipt (FCR) as one of the widespread financing instruments in Ukraine.

Having assessed the potential risks, experts of Interlegal developed and proposed several schemes upon the Bank interest security, facilitating not only settlement of the FCR problem but also real control over disposal and shipping of goods financed by the Bank.

Karina Gorovaya and Kirina Riashentseva, experts of Interlegal team, under general supervision of Nataliya Myroshnychenko, the associated partner, worked upon the project.