CEE Legal Matters

Category: Ukraine

  • Simmons & Simmons and Integrites Advises NBT on EPC Contracts for Europe’s Largest Onshore Wind Farm

    Simmons & Simmons and Integrites Advises NBT on EPC Contracts for Europe’s Largest Onshore Wind Farm

    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).

    Once completed, together with the 42.5 MW first stage, the Zophia Wind Park will become the largest onshore wind farm in Europe, with a total capacity of 792.5 MW – and will generate enough electricity to power the needs of approximately 340,000 households.

    Simmons also advised NBT on its Preliminary Financing Arrangement Agreement, under which NBT and CET set out their intentions for financing for Zophia II and Zophia III. According to Simmons & Simmons, “NBT plans to tap Chinese banks including Industrial Commercial Bank of China, the Export-Import Bank of China, and China Construction Bank for EUR 500 million of senior debt and arrange an additional EUR 250 million from international banks.” According to Simmons & Simmons, “this promises to be a landmark Belt and Road project in respect of its combined international and Chinese financing.”

    With a focus on emerging markets, NBT was the first company to close a limited-recourse financing in the fledgling wind power market in China in 2010 and earlier this year NBT, together with its equity partner Total Eren, closed the first limited-recourse financing of a wind farm in Ukraine with the 245.7 MW Syvash project (as reported by CEE Legal Matters on February 11, 2019).

    Simmons & Simmons’ London-based team was led by Partner Alex Blomfield and included Associates Louise Mackenzie and Elizabeth Ormesher.

    The Integrites team was led by Managing Partner Oleksiy Feliv and included Partner Viktoriya Fomenko, Counsel Gennadiy Roschepii, Senior Associate Dmytro Kiselyov, and Associates Olena Zhydenko and Alina Trofimova. 

  • Golaw Successfully Defends Vita-Solar in Ukrainian Criminal Proceedings

    Golaw Successfully Defends Vita-Solar in Ukrainian Criminal Proceedings

    Golaw has successfully represented Vita Solar LLC, a Ukrainian subsidiary of TIU Canada, in criminal proceedings.

    According to Golaw, the criminal proceedings related to VAT reimbursements granted to Vita Solar in 2018 -2019 by officials of the Directorate-General of State Fiscal Service of Ukraine in the Mykolaiv Region. According to the firm, the prosecutor alleged that the reimbursements were made to “obtain an unlawful benefit for the Directorate-General of State Fiscal Service of Ukraine,” which was acting “on a prior conspiracy with the employees of the affiliated enterprises, Vita Solar and its counter-parties.”

    As a result of the criminal charges, all funds of Vita Solar held in its bank accounts and in the State Treasury of Ukraine were seized, blocking the company’s ability to do business.

    Ultimately, according to Golaw, the criminal proceedings were “closed due to the absence of any offense,” and Vita Solar’s assets were released. 

    The Golaw team consisted of Senior Partner Sergiy Oberkovych, Partners Igor Glushko and Angelika Moiseeva, and Senior Associate Kristina Kolchynska. 

  • Vasil Kisil & Partners Launch Anticorruption Practice

    Vasil Kisil & Partners Launch Anticorruption Practice

    Vasil Kisil & Partners has launched a new Anticorruption practice to, as the firm explains, “respond to the current challenges and growing demand among clients.”

    The new practice will be led by Associate Anatoliy Pashynskyi who, according to VKP, “has for several years been developing this area at the firm.”

    “Vasil Kisil & Partners has considerable experience in dealing with anti-corruption issues and has been successfully providing services related thereto since the time when the Law of Ukraine on Preventing Corruption was enacted in 2015,” Pashynskyi explained. 

  • Integrites Successful for Dunapack in Court of Appeal on Transfer Pricing Dispute

    Integrites Successful for Dunapack in Court of Appeal on Transfer Pricing Dispute

    Integrites has successfully defended the interests of corrugated packaging manufacturer Dunapack in Ukraine’s Fifth Administrative Court of Appeal in Odessa.

    According to Integrites, the Court of Appeal upheld the previous decision of the Kherson District Administrative Court, which had cancelled liabilities and fines of almost UAH 16 million levied against Dunapack by Ukraine’s State Fiscal Service, after finding that the transfer pricing method applied by Dunapack was legitimate.

    The Integrites team consisted of Partner Viktoriya Fomenko and Associate Kostyantyn Kharchenko. 

  • Olena Sukmanova Joins Sayenko Kharenko as Head of Litigation

    Olena Sukmanova Joins Sayenko Kharenko as Head of Litigation

    Olena Sukmanova has joined Sayenko Kharenko as Partner and Head of Litigation.

    Sukmanova specializes in dispute resolution and has over 20 years of experience in debt collection, land dispute resolution, and anti-raiding.

    “We are pleased to welcome such a recognized expert to our team,” said Sayenko Kharenko Partner Sergey Pogrebnoy. “Olena shares our values and ambitions. Her in-depth professional experience will contribute to the further structuring and strengthening of the practice. I have no doubt that her arrival at the firm will allow us to respond more effectively to the business tasks of our clients by offering solutions providing comprehensive business protection.”

    Prior to joining Sayenko Kharenko, Sukmanova held positions in the legal departments of banks and industrial holding companies and spent two years as the Deputy and First Deputy Minister of Justice of Ukraine.

    She received her LL.M. and Ph.D in Law from the Donetsk National University in Ukraine. 

  • Maria Koval Becomes Head of IP at Redcliffe Partners

    Maria Koval Becomes Head of IP at Redcliffe Partners

    Maria Koval, former Senior Associate at Ilyashev & Partners, has joined Redcliffe Partners as Counsel and Head of IP.

    Koval has over 15 years of experience specializing in intellectual property issues and IP litigations, and Redcliffe Partners states that “Maria will considerably boost our capabilities and offerings in this sector.”

    Koval graduated from the International Solomon University and holds a Master’s degree from the Ukrainian Academy of Foreign Trade. She spent almost four years with Ilyashev & Partners, more than 11 years with Nevinpat-Ukraine, and two years with Krylova & Partners.

    “I believe that by joining this experienced and ambitious team I have a range of excellent opportunities ahead,” Koval said. “Together we will develop and reinforce our offerings in the market, and I am sure that very soon we will achieve great results.” 

    Redcliffe’s Managing Partner Olexiy Soshenko declared himself “delighted to welcome Maria aboard.” According to him, “adding Maria will boost not only our IP practice but also dispute resolution in IP matters, which is becoming much more in demand.”

  • President of Ukraine has Signed The Law which Changes The Procedure of Financial Restructuring of Debtors

    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.

    This Law amends several statutory acts, including the Laws “On Protection of Economic Competition”, “On Mortgage”, “On Securing Creditors’ Claims and Registration of Encumbrances” and “On Financial Restructuring”.

    The Law is expected to clarify, simplify and accelerate the procedure of voluntary financial restructuring of debtors.

    The main changes that will be introduced by the Law after its entrance into force are as follows:

    • The Law introduces a possibility to conduct a single procedure of financial restructuring with respect to several debtors who are related parties, provided that (a) such debtors have filed a joint application; and (b) the involved creditors-financial institutions of each debtor have agreed in writing to such procedure. The requirement for such debtors to have at least one joint creditor – financial institution has now been removed.
    • A new method of restructuring of monetary liabilities and the debtor’s economic activity has been introduced, and namely the transfer of any property of the involved creditors in favour of the debtor for renting or leasing, as well as conclusion by the parties of other contracts provided by the law.
    • It has been clarified that the creditors may, without consent of the debtor, submit a written statement tosecretariat about cancellation of restructuring negotiations due to failure to reach an agreement.
    • The Law states that so-called involved creditors may assign their respective claims towards the debtor at any time during the financial restructuring procedure, as well as pursuant to the concluded financial restructuring plan.
    • According to the amended procedure of financial restructuring set forth in Article 23 of the Law of Ukraine “On Financial Restructuring” the key procedural decisions passed upon initiation of financial restructuring (establishment of creditors’ committee, extension or lifting of moratorium etc) shall not require the signature of the debtor, but shall be signed by the creditors only – the debtor will only be informed of such decisions either by the secretariat or by the involved creditors.
    • The provisions about liability for violation of the Law of Ukraine “On Financial Restructuring” has been excluded.
    • The following provisions have been added to the Law of Ukraine “On Protection of Economic Competition”:

    ✓ The concentration shall not be considered unlawful if the bank or other financial institution acquires assets (inthe form of a single property complex (yedynyi mainovyi kompleks), participatory interests (shares, equity)) of a commercial entity, provided that such acquisition is envisaged in the restructuring plan and is being carried out by way of enforcement of pledge (mortgage) or other security encumbrance. Another precondition is that such property must be subsequently alienated within two years from the date of acquisition in favour of commercial entities which are not connected with such bank or financial institution by control relations. The absence of a concentration permit in the course of such actions shall not be considered violation of law. In addition, it is required that: (a) the acquisition of such property into ownership must be conducted against full or partial repayment of the debt owed to a bank or another financial institution, and (b) an entity whose participatory interests (shares, equity) are acquired, is not a bank or another financial institution. It should be noted, however, that the Law does not eliminate the currently existing contradictions in the definitions of “integral property complex” / “single property complex” (although the Law provides that “single property complex” is a broader term, which includes “integral property complex” as its element).

    ✓ Acquisition of the relevant assets into ownership or use (management, rent, leasing, concession, etc.) will notbe considered concentration if such actions are envisaged in the restructuring plan. The absence of a concentration permit in the course of such actions shall not be considered violation of law as well.

    • The period has been extended during which the encumbrancers are entitled to satisfy all their claims in case of insufficient value of the collateral. Now, this period shall not be limited by the time of carrying out the “financial restructuring procedure”, but also shall extend to the period of “implementation of the restructuring plan”.

    By Igor Krasovskiy, Partner Integrites

  • Everlegal Advises UDP Renewables on Port-Solar SES Project

    Everlegal Advises UDP Renewables on Port-Solar SES Project

    Everlegal has advised real estate developer UDP Renewables on the implementation of the Port-Solar SES project in the Odessa region of Ukraine.

    The total capacity of the solar power station is 8.6 megawatts.

    Everlegal reports that the Port-Solar SES is expected to produce nearly 11,830 megawatts hour per year and to provide power to 3,200 homes in Ukraine.

    Previously, Everlegal advised UDP Renewables on its sale of solar power plants under development in the Kyiv region to Acciona Energy (as reported by CEE Legal Matters on July 4, 2018) and on the implementation of the Scythia-Solar SES project and commissioning of its second phase (as reported on August 1, 2019).

    The Everlegal team was led by Partner Andriy Olenyuk, assisted by Managing Partner Yevheniy Deyneko, Senior Associate Yuliia Kylchynska, Associate Alina Zhuk, and Junior Associates Vladyslav Lazarevych and Kyryll Kostyria..

  • Integrites Helps Turkish Investors Confront Raider Attack

    Integrites Helps Turkish Investors Confront Raider Attack

    Integrites successfully helped Turkish investors Lutfu Turkkan, Mujakhit Turkkan, and Ahmet Penich recover their 58% share in IK Aktiv LLC and confront what the firm called a “raider attack on the company by a Ukrainian partner.”

    IK Aktiv LLC is the owner of the property on which the Kryvyi Rih oil extraction plant operates. Intrgrites describes the plant as “one of the leading players in the oil and fat market of Ukraine.”

    According to Integrites, the Turkish investors “had been illegitimately excluded from the State Register of Legal Entities, Individual Entrepreneurs and Public Formations. At the same time, as a result of illegitimate changes made to the Register, the Ukrainian partner of the Turkish investors, Ruslan Yevstafyev, had appointed himself the director of the company.”

    To protect their property rights, Integrites’ clients filed a complaint with the State Registration Complaints Commission at the Ministry of Justice of Ukraine.

    Integrites reported that “the Ambassador Extraordinary and Plenipotentiary of Turkey to Ukraine Yagmur Ahmet Guldere, Ukrainian Chamber of Commerce and Industry and its President Gennadiy Chizhikov, the Ukrainian-Turkish Business Council headed by its Chairman Rasim Bekmezji, and the Union of Industrialists and Businessmen of Ukraine and Turkey publicly spoke in defense of the Turkish entrepreneurs. The case received widespread coverage in the Ukrainian media.”

    The Integrites team included Senior Associate Kristina Shyposha and Associate Marta Grunska from the firm’s Cross-Border Litigation practice (supervised by Partner Dmytro Marchukov), as well as Senior Associate Serhii Rymar from the firm’s Domestic Litigation practice (supervised by Partner Oleksandr Onishchenko).

    “To solve the problem of raiding, which foreign investors have been still facing in Ukraine, the Government, legal and business communities should combine their efforts,” explained Dmytro Marchukov. “The business climate and the volume of foreign investments coming to Ukraine both in the short term and long run will depend on how well-coordinated these efforts are.”

  • PwC Promotes Vadym Romaniuk to Head of Banking and Finance

    PwC Promotes Vadym Romaniuk to Head of Banking and Finance

    PwC Legal Ukraine has promoted Vadym Romaniuk to Manager of the firm’s Banking and Finance practice.

    Romaniuk, who has over seven years of experience, focuses on Corporate and M&A, Banking and Finance, Compliance, and Alternative Energy. He first joined PwC Legal in Kyiv in 2012 as a Legal Consultant and became Senior Associate in 2015.

    He received his both Master’s and Bachelor’s degrees in Law from the Taras Shevchenko National University of Kyiv in Ukraine.