Miller Magazine Issue: 138 June 2021

80 INTERVIEW MILLER / june 2021 increasing scope of information in Russian and tools for infor- mation exchange, the opportunities and commercial literacy of manufacturers and traders increased tremendously. Small and large manufacturers, who neither have the time nor want to follow price changes and trends, are ready to help free experts who left large trading companies and provide commer- cial services in price risk analytics. There are emerging and developing IT platforms that facilitate getting the best price offers for their product with trusted coun- terparties, without leaving home. Everything occurs in view of significant increase in possibilities for high-quality and long-term storage of almost any volume, as mentioned above. You often speak about the consolidation of players in thismarket. Yes, it also plays a crucial role. Among the market top 20, the situation is fundamentally different, as compared to medium and small traders. There is also Ukrainian specificity. For exam- ple, several large and well-known defaults last year significantly changed the market situation. First, compliance requirements in international companies have become more stringent. They have become more selective, more attentive, more demanding. Strict compliance is also supported by the deoffshorization factor. Previously, we held seminars upon opening a company and bank account in a few days. Today it has become much more difficult to open an account in a foreign bank and com- mence working. Governments and regulators set their own strict requirements, and it is no longer possible to change companies. Of course, it has many advantages for the rules of the game in whole. It is not so easy to withdraw from the company and to open a new one, if the deal is not profitable; people highly ap- preciate their reputation and their tools. In the long-term pros- pect, the market will get more civilized and the conduct of busi- ness will be predictable. Therefore, we are pleased very much, on how our corporate and tax practice is growing in terms of building long-term reputable corporate structures. CFC, BEPS, tax structuring – such issues much more often appear in custom- er’s requests. It means that business has come to terms with the new reality and is adapting there to. It is getting more civilized, isn’t it? Yes, we may say so. The fact is that information today spreads almost instantly. If any market player fails to fulfill its obligations, everyone will get aware immediately. Think back to last year’s defaults. Everyone said that some- thing terrible would happen now, everyone would declare de- faults... However, nothing happened on a massive scale. Most companies could achieve an agreement, and almost everyone, one way or another, reached a compromise with their counter- parties – either with lawyers engaged or by their own forces – it does not matter. It is important that market has managed to come to an agreement, to preserve relations and to maintain business. You say that market is consolidating. In which direction is this process going? Yes, everyone can see clear vertical integration. Almost all large holding companies already have their own terminal facili- ties, transport companies, transport units, including railway. Now the opening of river shipping is seriously stimulating investment in the Dnieper river fleet. Almost all the customers to the deals on fleet sale and purchase we had this year are agribusiness- men. They register fleet under the Ukrainian Slovakian, Molda- vian and Georgian flags. We like such deals because they are large and interesting, clients need to structure the company, to structure the deal, to develop a contractual framework in view of international specifications.