How to recover money from abroad? (INTERVIEW)

How relevant is the problem of money recovery from abroad back to Ukraine?

We have to admit that the problem is very urgent. Here is a typical example. Ukrainian company purchases steel in China. The first delivery is made and it turns out that the quality of steel is quite bad. But the payment has already been made.

The Chinese exporter ignores the claims and pretends that the steel complies with all Chinese regulations and standards. Practically it is very difficult for Ukrainian company to solve such dispute by itself.

Is it so difficult in such a case to collect the debt from Chinese exporter?

Of course, such situation is very complicated for the Ukrainian company. It does not have an office in China. It does not have a clear understanding of the Chinese legislation either.

Even ordinary differences in languages of communication, time zones and national currencies also play against the creditor. If regular demands to pay do not help, the only way to solve the dispute is to go to lawyers and to try to prove the bad quality issues before the court.

However, there are a lot of technical questions and additional fees even in a litigation process.

Was the dispute between Chinese and Ukrainian companies finally solved?

When it became clear that the complaints did not work, the Ukrainian company sent an email to the Ukrainian office of “TCM Group International”.

Our lawyers examined the details of the dispute, built a strategy, formed a line of argumentation and held a series of negotiations with the opponent. It is worth noting that lawyers of the Chinese office of “TCM Group International” also handled the case.

As a result, we conducted a six-hours mediation conference, during which the Ukrainian company was able to achieve significant results.

First of all, Chinese exporter acknowledged that there was defective steel at the first delivery. And, of course, most importantly, the Ukrainian side has received a promissory note for repayment and compensation within the agreed timeframe.

I would like to separately emphasize that in this case the Ukrainian company became able to recover the money without paying any court fees.

How often do Ukrainian companies manage to win the international commercial disputes and to recover their money back?

In fact, until recent time, there were very limited opportunities for money recovery from abroad back to Ukraine.

The vast majority of Ukrainian companies preferred to leave everything as it was, and to choose a more careful approach in the selection of exporters in the future.

If the company decided to apply for legal aid, it could rarely achieve positive results, because, as a rule, Ukrainian law firms do not have their offices in the country of the counterparty and, therefore, can do much less acting remotely.

What are the perspectives of Ukrainian companies to succeed in international commercial disputes now?

A significant event happened in 2014- an international law firm “TCM Group International”, that specialize in international commercial dispute resolution and debt collection, entered the Ukrainian market.

Thus, any Ukrainian company, that has an outstanding commercial dispute or open balance, can successfully defend its interests with the help of lawyers in China and in other 144 countries around the world, simply by contacting the Kyiv office of “TCM Group Ukraine”.

Is it necessary to pay substantial fees to lawyers for settlement of international commercial disputes?

Remarkably, the work of “TCM Group Ukraine” and the work of the entire international network as a whole was initially based on the principle «No Collection – No Fee».

This means, the lawyer’s commission is to be paid only in case of gaining a positive settlement of the dispute. We are to be paid only in case when the creditor receives money back from the debtor.

Usually, there is no need to cover the court fees because we succeed to settle more than 70% of claims amicably through negotiations and mediation.

Therefore, almost any Ukrainian company has already received a possibility to apply for help of TCM Group International through Ukrainian office, and has received a unique possibility to recover money from foreign companies even without available budget for legal services.


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