LCF Law Group’s Energy and Projects practice has had a busy year in Ukraine, with Partner Ivan Bondarchuk highlighting major energy infrastructure mandates – from renewables and storage to gas power plants – alongside critical road and grid projects, post-war recovery initiatives, and increasing interest from international investors preparing for the post-war market.
CEELM: What’s been keeping the Infrastructure/PPP practice busy over the last 12 months?
Bondarchuk: Over the past year, we’ve been advising both international and local companies active in the energy and infrastructure sectors. Much of our work has involved researching the Ukrainian market, assessing target structures, and monitoring the final regulatory framework, alongside managing construction and licensing matters. Historically, our practice was built around energy projects, particularly in the renewables space, but over time, we’ve expanded to include energy storage, gas power plants, and broader infrastructure matters.
At the moment, around 80% of our infrastructure portfolio relates to energy infrastructure. The work goes far beyond just building energy facilities – it also covers critical infrastructure like roads and transmission grids needed to commission and operate those facilities. If we talk about specific highlights, one notable example is our involvement in one of the three power plants commissioned during the war and the sale of a 200-megawatt wind power plant by a local developer to Elementum Energy, which Forbes Ukraine recognized as one of the most significant deals in the country since the war began. We’re also advising on a 200-megawatt battery storage project, the largest of its kind, run by DTEK.
CEELM: What’s been driving that pipeline of work?
Bondarchuk: Right now, I would say the infrastructure sector is being driven by three main factors. The first is trying to recover from critical infrastructure damage caused by the war. There’s still a large number of projects coming into Ukraine, particularly in critical infrastructure. For instance, at the beginning of the war, we worked on the Ukraine Energy Support Fund – a major pro bono initiative supported by international donors. Later, I was involved in a USAID-financed infrastructure project. These types of internationally backed initiatives continue to play a big role.
The second factor is the monetary policy environment. The National Bank of Ukraine has restricted the outflow of foreign currency, which means many companies have significant cash reserves that must be invested locally. This has led to increased interest in funding domestic infrastructure projects.
The third factor is growing international interest. Many foreign companies are moving quickly to position themselves for when the war ends, as they want to be first in line for opportunities. In parallel, we’re also seeing increased focus on hydrogen, port infrastructure, and waste management, especially since the President signed new PPP legislation just last week. While some of these projects are still in the early stages, the demand is clearly building up.
CEELM: What’s the outlook for the next 12 months?
Bondarchuk: It really depends on how the war unfolds. In 2022, the sentiment was overwhelmingly pessimistic – nobody wanted to commit to anything. In 2023, there was a wave of discussions with international players in anticipation of a successful counter-offensive, which didn’t quite meet expectations, and interest dipped again. But in 2024, we’ve seen a steady rebound.
Now, strategic investors are factoring in the reality that Ukraine will exist as a country. They still weigh the risks of war, but there’s renewed appetite for long-term projects.
One of the main challenges for lawyers right now is that while developers are entering the Ukrainian market, there are still very few practical structures for large-scale foreign investment. Our task is to create investment frameworks that work under current wartime conditions and can be scaled up significantly once the conflict ends.
