PRAGNUM helped a client recover $1.65 million from a debtor owned by a company from the aggressor country

Following the commencement of the full-scale invasion of Ukraine, numerous restrictions were enacted concerning commercial activities with entities beneficially owned by persons affiliated with the aggressor state. Specifically, remittances to such entities were severely limited, and notarial acts involving them were restricted. The assets of such entities became subject to potential compulsory alienation in favor of the Ukrainian state.

Furthermore, the Criminal Code of Ukraine was amended to include new provisions effectively criminalizing certain commercial activities with entities beneficially owned by persons affiliated with the aggressor state.

Concurrently, banking restrictions were imposed, particularly concerning cross-border transfers to non-resident creditors.
PRAGNUM's client, a foreign entity, was a creditor of an enterprise beneficially owned by a person affiliated with the aggressor state. Due to the legislative amendments, the client faced potential loss of debt recovery, as all debtor's employees, including management, ceased cooperation with both the debtor and the client. Moreover, the debtor's assets, including monetary funds, were at risk of being seized and compulsorily alienated in favor of the state at any time.

To safeguard the client's interests, PRAGNUM's legal counsel initiated insolvency proceedings against the debtor. Within this framework, they first obtained a court order for the removal of the debtor's management, gained access to banking transaction records, conducted asset tracing, and consequently, through the insolvency proceedings, successfully recovered the outstanding indebtedness on behalf of the client.

This revised version maintains legal precision while effectively communicating the complexity of the situation and the successful outcome achieved by PRAGNUM for their client.