Safe Ukraine 2030 Foundation Is Starting the Project to Support the Implementation of Directive on Preventive Restructuring in Ukraine

The Safe Ukraine 2030 Foundation, within the framework of grant issued by EU Project Pravo-Justice, implemented by Expertise France, has launched a project to support the enactment of the Law of Ukraine No. 3985-IX on the implementation of Directive 2019/1023 of the European Parliament and of the Council of the European Union and the introduction of preventive restructuring procedures, as well as to raise awareness of key stakeholders about these procedures.

The project provides for a number of analytical, training, outreach activities aimed at the effective implementation of a new tool for restoring the solvency of debtors at an early stage.

The project’s goal is to support the adaptation of Ukrainian legislation to EU standards in the field of insolvency and debt relief procedures, as well as to contribute to the formation of a common understanding of the benefits of preventive restructuring among professional communities and potential users.

The following has been planned in the framework of the initiative:

• Hold a series of roundtables and expert discussions involving judges, bankruptcy trustees, lawyers, business associations, and other stakeholders;
• Develop and distribute specialised outreach materials for various target audiences;
• Conduct a legal analysis of potential risks associated with the implementation of the Directive’s provisions in Ukraine, along with the preparation of proposals for their minimisation;
• conduct an outreach campaign focused on the professional community.

“Preventive restructuring is a modern legal instrument that allows enterprises to avoid insolvency and preserve business in difficult conditions. Our goal is to make these mechanisms understandable, accessible, and effectively applicable in Ukraine,” said Olena Sukmanova, President of the Safe Ukraine 2030 Foundation.

In turn, Iryna Zharonkina, Enforcement and Protection of Property Rights Component Lead at EU Project Pravo-Justice, emphasised the importance of awareness of potential users about the opportunities offered to businesses under such procedure, as well as awareness of judges and bankruptcy trustees about the features of its application.

“The experience of EU countries proves that the preventive restructuring procedure is the most effective when applied at an early stage of identifying signs of possible insolvency of a company, which makes it possible to apply the tools provided for by the procedure in a timely manner and to prevent insolvency,” noted Iryna Zharonkina.

Background information

The Public Association “Foundation for Research of War and Conflict, Development and Public Security Support “Safe Ukraine 2030" (Foundation Safe Ukraine 2030) is an independent civil society organisation which has united the efforts of five specialised NGOs with many years of experience in the field of security and justice. The Foundation has created the first non-governmental platform in Ukraine aimed at developing national, public, corporate, and judicial security even in difficult war conditions. Its activities are based on the principles of good governance underpinning the UN operation, including rule of law, efficiency, accountability, transparency, and engagement of all population groups. The Foundation has been actively implementing interdisciplinary projects in at least 35 security areas, involving more than 50 experts, and has implemented more than 120 initiatives on security and justice issues.

The Foundation’s mission is to build a safer Ukraine – with everyone and for everyone who respects its independence, democratic path, and works for its prosperity.

EU Project Pravo-Justice is a technical assistance project implemented by Expertise France with financial support of the European Union. After the victory of the Revolution of Dignity, EU Project Pravo-Justice became one of the drivers in promoting the rule of law in Ukraine, bringing the country’s legislative framework in line with European standards, developing a strategic vision of reforms, judicial reform, proper enforcement of judgments, etc.