Asters has advised ED&F Man on the issuance for the company of a UAH 195 million customs guarantee by Ukrgasbank in favor of the State Fiscal Service of Ukraine.
According to Asters, "this project was the first in Ukraine to involve customs guarantee issued by a Ukrainian bank."
PJSC Joint Stock Bank "Ukrgasbank" was founded in 1993 and is headquartered in Kyiv. A controlling stake of the bank’s equity belongs to the Ukrainian Ministry of Finance. Ukrgasbank is among top 10 banks of Ukraine in terms of total assets, according to the National Bank of Ukraine.
Yurii Khramov, Deputy Chairman of the Board of Ukrgasbank, explained that: "The Customs Code of Ukraine provides for use of a customs guarantee. Such tool allows importing or exporting goods for processing via tolling scheme (including repair or upgrade), as well as to import goods temporarily into the customs territory of Ukraine or to move goods through the territory of Ukraine in transit regime without customs payments. The main advantage of this inexpensive financial vehicle is that there is no need to use the company's current assets or obtain expensive loan facilities to secure relevant customs taxes and duties when putting the goods at the relevant customs regime in Ukraine."
"This innovative project will support one of the leading agriculture producers in Ukraine, fostering economic activity and securing jobs in our country," commented Asters Partner Oleksiy Khomyakov, who led the firm's team on the deal. "We are happy to be a part of the project aimed at the further strengthening of the economic development of Ukraine."
Khomyakov was assisted by Associate Oksana Legka.