As the country entered the 21st century, Ukraine’s Soviet-era judicial system was widely condemned as corrupt, incompetent, and inefficient. Committed to rectifying the situation, in 2015 the Ukrainian government introduced plans to reform the entire system. That transformation, which was the focus of an August 2017 CEE Legal Matters Round Table, continues today. We reached out to several of the Ukrainian dispute resolution specialists we spoke to several years ago for an update.
In February 2019 CEE Legal Matters reported that Integrites and K&L Gates had advised Norwegian utility-scale wind power developer NBT and Paris-based renewable energy independent power producer Total Eren on their entrance into a framework agreement with a syndicate of foreign lenders, including the EBRD and the Nordic Environment Finance Corporation, for the construction of the Syvash wind farm – one of the largest in Europe. Redcliffe Partners and Clifford Chance advised the lenders and J.P. Morgan Securities Plc as debt coordinator.
Simmons & Simmons and Integrites have advised NBT, a Norwegian wind power developer and the largest foreign investor in Ukraine, on its successful negotiations for Engineering, Procurement and Construction contracts with China Electric Power Equipment and Technology Co, Ltd. for the 300 MW second stage and 450 MW third stage of the Zophia Wind Park in Ukraine (“Zophia II” and “Zophia III” respectively).
On September 19th, 2019 Verkhovna Rada of Ukraine has adopted the Law No. 1070 “On Amendments to Certain Laws of Ukraine on Improving the Procedure of Financial Restructuring” (the “Law”), which extends legal force of the Law of Ukraine “On Financial Restructuring” for another three years. The Law has been supported in the second readingby 300 deputies and on 23rd of September it has been signed by the President.
Redcliffe Partners and Clifford Chance Amsterdam have advised the Netherlands Development Finance Company, the Green for Growth Fund, and the Norwegian Guarantee Institute for Export Credits on EUR 37.8 million financing to Scatec Solar for the construction of a 54 MWp solar PV plant in the community of Bohuslav, in the Kyiv region of Ukraine. Integrites and Trinity advised Scatec Solar on the transaction, which closed in July 2019.
Recent developments in the Ukrainian energy sector open up new opportunities for strategic international investors. First is “green” auctions – starting 2020, new projects in power generation for renewable sources will develop under the price formed through an open auction system. The new law on auctions adopted in 2019 will allow investors to make long-term plans in the sector and attract project financing. Second is the launch of the open electricity market on July 1, 2019.
Integrites has advised Flooring Industries Ltd Sarl on Ukrainian law elements of three cases against a Ukrainian debtor heard by German courts, helped with the collection of evidence for those cases, and then successfully represented Flooring Industries in recognition and enforcement proceedings of the German verdict in Ukrainian court.
Avellum has acted as Ukrainian legal counsel to the EBRD and Nederlandse Financierings – Maatschappij voor Ontwikkelingslanden N.V. in connection to a EUR 24.5 million senior secured loan granted to LLC Chysta Enerhiia-2011, with 50% from each. Integrites reportedly advised Chysta Enerhiia-2011 on the deal.