Category: Estonia

Ellex has advised state-owned Estonian Air Navigation Services on a EUR 13 million loan from the Nordic Investment Bank to improve the efficiency of air navigation services.

Estonian Air Navigation Services is a state-owned public limited company under the supervision of the Ministry of Economic Affairs and Communications. EANS provides safe and efficient air navigation services together with air traffic management for both manned and unmanned air vehicles.

According to Ellex, this “financial arrangement will support EANS’ investment program spanning from 2022 to 2025. The program includes upgrades to air traffic management systems, IT development, remote air control towers, communication systems, and other advancements to improve the efficiency of air navigation services.”

“The past two years have been challenging,” EANS CEO Ivar Vark commented. “To meet the demand for providing air navigation services in the most efficient, safe, and sustainable way, we need capital and smart investments towards the future.”

“Investments in air navigation systems are essential for safe and efficient transportation,” NIB Vice-President and COO Gunnar Okk added. “As the number of flights is expected to grow, merging the airspace between Estonia and Finland not only helps to accommodate the demand but can also reduce the burden on the environment.”

The Ellex team in Estonia included Partner Ermo Kosk and Counsel Toomas Kasesalu.

Lextal has advised digital asset platform Blocktrade on the launch of its new BTEX token which raised over EUR 5 million to date.

According to the firm, “Blocktrade is widely recognized in the digital asset industry for its transparency, security, and user-friendly approach. Recently, the platform introduced its own token to offer enhanced value and benefits to both existing and future users.”

Over 1,400 community members in 42 countries participated in the token’s sale round, Blocktrade announced. “We are grateful for the overwhelming response and participation by Blocktrade VIP members to this exclusive token sale round,” Blocktrade CEO Christian Niedermueller commented. “This show of enthusiasm points to the appetite amongst crypto users today for an accessible and engaging digital asset trading platform. We now look forward to continuing to enhance the experience on offer to Blocktrade’s ever-growing community.”

The Lextal team was led by Attorney-at-law Henri Ratnik and included Partners Rauno Kinkar and Margus Reiland and Attorney Dan-Erik Roosve.

Did You Know that, of the 30 lawyers who have worked on Estonian client matters reported by CEE Legal Matters so far this year, only seven have worked on more than one? The 2023 Estonian leaderboard is currently led by Sorainen Partner Toomas Prangli, who has worked on four reported client matters so far this year.

According to the Activity Rankings function of the CEELMDirect website, Pohla & Hallmagi Partner Toivo Viilup has worked on three, and Ellex Partner Antti Perli, TGS Baltic Partner Kadri Kallas, Cobalt Partner Martin Simovart, and Sorainen Partners Karin Madisson and Katlin Krisak have all worked on two.

An additional 23 partners have worked on one reported Estonian client matter so far this year.

Want to see which client matters these lawyers worked on? Visit CEELMDirect.com, the world’s only truly dynamic legal directory, and find out for yourself!

TGS Baltic has advised Estonian national postal service provider Eesti Post (Omniva) on its acquisition of assets – including a network of smart mailboxes and the related IP rights – from Parcelsea.

Parcelsea is an Estonian start-up concentrating on developing delivery solutions.

Back in 2022, TGS Baltic had also advised Eesti Post on its acquisition of Express Post (as reported by CEE Legal Matters on April 4, 2022).

The TGS Baltic team included Managing Partner Sander Karson, Partners Linda Strause and Triin Kaurov, Associate Partner Triinu Jarviste, and Senior Associates Mari-Liis Orav, Maris Alt, Silvia Urgas, and Liisa Levandi.

TGS Baltic could not provide additional information on the matter.

Cobalt has advised Change Ventures on launching its EUR 20 million Fund III.

Change Ventures is a capital fund in the Baltic region that specializes in early-stage investments.

“In 2017 Change Ventures started investing in the Baltic states, establishing the first truly pan-Baltic seed/pre-seed fund,” Change Ventures press release stated. “Since then we have backed over 33 startups, which keeps demonstrating an ability to generate outsize startup success stories relative to the population and size of the regional economy. The ‘next startup nations’ is a clear analogy to the world’s pre-eminent startup economy success to date  –  Israel –  as we believe that Estonia, Latvia, and Lithuania can repeat that level of success in this region over the next 10–20 years. Our third fund continues our focus on founders from the Baltic states or Baltic diaspora.”

“With our EUR 20 million target size Fund III, we are doubling down on pre-seed investing,” Change Ventures added. “Almost half of our total initial investments to date have been at the pre-seed stage. It is where we are most excited to join a startup’s journey, the stage when almost everything depends on the founding team’s ability to navigate the circuitous path to achieve product-market fit and then scale a business.”

Cobalt previously advised Change Ventures on leading the USD 2 million pre-seed financing round for influencer marketing software start-up Modash (as reported by CEE Legal Matters on November 30, 2022).

The Cobalt team included Partners Kristel Raidla-Talur and Monika Koolmeister, Specialist Counsel Greete-Kristiine Kuru, Senior Associate Kaarel Eller, and Associate Johanna Lumiste.

Triniti has advised the Tallinn water company AS Tallinna Vesi on a EUR 91 million syndicated loan agreement with AS SEB Pank.

In addition to AS SEB Pank, the syndicate also includes Swedbank AS and the Estonian branch of OP Corporate Bank plc.

According to Triniti, the funds “will refinance existing loan commitments and finance AS Tallinna Vesi’s investments in the period 2023-2025.”

Earlier this year Triniti advised Utilitas, Estonia’s largest district heating company, on a joint venture to establish a district heating company with the City of Tallinn (as reported by CEE Legal Matters on May 24, 2023).

Trinit’s team included Managing Partner Ergo Blumfeldt and Senior Associate Katri Tomson.

TGS Baltic has successfully represented the interests of Jetoil before Estonian courts in a dispute related to supplied fuel quality.

According to TGS Baltic, the dispute related to “the performance of fuel quality control and the courts agreed that the fuel supplied by Jetoil met quality requirements. The court case demonstrates that the validity of special agreements between parties largely depends on the area of activity in which they operate. In the transport sector, it is permissible for parties to agree on shorter notice periods for raising claims to ensure the normal functioning of the sector. It is also important to carefully review the general terms and conditions applicable to the contractual relationship when entering into a contract, as technical matters may include detailed instructions for the parties to follow.”

TGS Baltic’s team included Senior Associates Martti Peetsalu and Maris Vutt.

Triniti has advised Utilitas on the joint venture to establish a district heating company with the City of Tallinn. Sorainen reportedly advised the City of Tallinn.

According to Triniti, Utilitas is Estonia’s largest district heating company and producer of renewable energy. “The company supplies heat to 386,000 households in nearly 5,500 buildings in eight Estonian cities and provides district cooling services.”

According to the same firm, Utilitas and the City of Tallinn agreed on “a timeframe and action plan for the establishment of a joint district heating company […] which will be 33.34% owned by the City of Tallinn and 66.66% by Utilitas. The joint venture will be a holding company managing district heating investments in the Tallinn district heating area. Entry into force of the transaction is subject to the approval of the Tallinn City Council and the completion of the transaction is subject to a merger control clearance from the Competition Authority.”

“The new joint venture shall continue the upgrading of the district heating network and investing in new renewable energy sources such as wastewater and seawater heat pumps,” Triniti reported. “The business plan of AS Utilitas Tallinna Soojus aims to achieve a carbon-neutral district heating and cooling supply by 2030 at the latest, including a reduction of the share of natural gas in district heating to below 10% by 2027 at the latest, which will allow a reduction of fossil fuel consumption by more than 500,000 megawatt-hours. The aim is also to extend the district heating and cooling network, to allow easy connection and, depending on technical possibilities, to bring the network to urban areas that today mainly use fossil heating sources.”

In 2021, Triniti also advised both Utilitas and the City of Tallinn on their EUR 100.2 million acquisition of a 35.3% stake in AS Tallinna Vesi from United Utilities (as reported by CEE Legal Matters on February 10, 2021).

The Triniti team included Managing Partner Ergo Blumfeldt, Partner Tanel Kalaus, and Senior Associates Ain Kalme, Sandor Elias, and Mikk Pold.

Cobalt has successfully represented the Republic of Estonia during the judicial proceedings in the VEB Fund case, with the fund having been established 30 years ago to address the issue of banking funds blocked in the Russian Federation.

According to Cobalt, “Parnu Kalur Holding (bankrupt), Akke (in liquidation), Tartu Lihakombinaat (bankrupt), Volta, Latvias Kugnieciba, Saare Kalur, and Kreenholmi Valduse Aktsiaselts filed an action against the Republic of Estonia for the determination of fair compensation in relation to the activities of the Republic of Estonia upon the foundation of VEB Fund, and compensation for the certificates issued on the basis thereof.”

According to the firm, “the dispute dates back to almost 30 years ago and has received a lot of attention in Estonia ever since. In December 1992, the Central Bank of Russia advised the Bank of Estonia that, until the Republic of Estonia and the Russian Federation reached an agreement regarding the participation of Estonia in the payment of the external debt of the USSR, Pohja-Eesti Aktsiapank (North Estonian Bank) and UBB would not be able to freely use their money held in VEB Bank. By autumn 1992, both banks whose money was blocked in VEB Bank were insolvent and facing bankruptcy.”

“In order to ensure the sustainability of banking in Estonia,” the firm reported “the Riigikogu passed a resolution in January 1993, accounts of Estonian banks frozen in the Bank of Foreign Trade of the USSR, whereby the VEB Fund was established. The main function, according to the resolution of the Fund, was to find solutions for satisfying the claims of Estonian banks and other legal and natural persons regarding the accounts frozen in the former Bank of Foreign Trade of the USSR.”

Finally, Cobalt announced that “the Republic of Estonia [contends] the action in full, considering that the actions have been filed in violation of due term, and are also unreasoned as to the merits of the matter. The court agreed […] that the complaint was filed with great delay and repeatedly against one of the complainants, which is not allowed.”

Cobalt’s team included Specialist Counsel Kadri Matteus and Counsel Indrek Koolmeister.

Former Associate Partner Ksenia Kravtsenko has been promoted to a Partner position at Lextal in Estonia.

Specializing in litigation and disputes, Kravtsenko joined Lextal in 2021 as an Associate Partner, where she has also been the Head of the firm’s International Private Law group. Before joining the firm, she was an Attorney-at-Law with KPMG Baltics, from 2018 to 2021, and with Law Firm Turnstone from 2017 to 2018. Earlier still, Kravtsenko spent time as an Attorney-at-Law at Mullari & Koch, from 2015 to 2018, a Partner with Vares & Partnerid, from 2010 to 2014, and an Attorney-at-Law with Seppik & Sirel from 2005 to 2010.

“Ksenia is competent and can provide legal assistance in Estonian, English, and Russian,” Lextal Managing Partner Marge Manniko commented. “She is a prime example of how hard work pays off. Her strong suit undoubtedly lies in her exceptional social skills. She is a great asset to our team, and I am extremely pleased that her presence has enriched our circle of partners.”