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Avellum, Sayenko Kharenko, and Asters Advise on Billion-Dollar Deal for Ukrainian Railways Renovation

Signing of contract (General Electric - Ukrainian Railways)

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Avellum has acted as a Ukrainian legal counsel to PJSC Ukrzaliznytsia, the country’s state-owned rail transport company, on a USD 1 billion collaboration with GE Transportation, a division of the General Electric company. Asters has advised GE Transportation on Ukrainian laws. Sayenko Kharenko has represented Ukreximbank in connection with the inaugural deal.

General Electric states the framework agreement is the largest ever for the company in Ukraine. The first transaction within the framework, involving Ukreximbank, involves the supply of 30 GE Evolution Series freight locomotives to Ukrzaliznytsia.

According to Asters, the agreement envisions further delivery of additional locomotive kits over the next decade, as well as the rehabilitation of locomotives in the railway’s legacy fleet and long-term maintenance services.

The manufacture of the locomotives in the US is scheduled to start in early 2018, with the first deliveries expected for this autumn. Work on the locomotives will be partially done in Ukraine that reportedly will ensure further promotion of job creation and economic growth in the country.

Moreover, due to the localization requirement, Ukraine will account for 10% of production and supplementing parts with further increase of up to 40% over a 10-year period. Avellum describes the transaction as “an important step towards modernization of Ukraine’s railway transport infrastructure.”

The manufacture of the locomotives in the US is scheduled to start in early 2018, with the first deliveries expected for this autumn. Work on the locomotives will be partially done in Ukraine that reportedly will ensure further promotion of job creation and economic growth in the country.

Sayenko Kharenko Counsel Anton Korobeynikov, who led his firm's team on the deal, commented, “We believe this is a ground-breaking deal in all aspects – it involves major Ukrainian and international participants, [consists of] a complex combination of commercial and financial instruments, and creates a foundation for the modernization of Ukrainian railway infrastructure.”

In addition to Korobeynikov, the Sayenko Kharenko team included Associate Denys Nakonechnyi and Junior Associate Vira Pankiv.

The Avellum team was led by Counsel Maksym Maksymenko and included Senior Associate Anna Melnychuk, both working under the general supervision of Managing Partner Mykola Stetsenko and Senior Partner Glib Bondar.

The Asters' project team included Counsel Olena Radko and Associate Maksym Tereshchuk and was led by Senior Partner Armen Khachaturyan.

 

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AVELLUM is a leading Ukrainian full service law firm with a key focus on Finance, Corporate, Dispute Resolution, Tax, and Antitrust.

Our aim is to be the firm of choice for large businesses and financial institutions in respect of their most important and challenging transactions.

We build lasting relationships with our clients and make them feel secure in new uncertain economic and legal realities.

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AVELLUM is recognised as one of the leading law firms in Ukraine by various international and Ukrainian legal editions (Chambers, The Legal500, IFLR1000, The Ukrainian Law Firms, and others).

Firm's website: www.avellum.com

 

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