Category: Ukraine

Sayenko Kharenko has advised the Export and Investment Fund of Denmark on a EUR 3.17 million loan facility to Ristone Holdings.

The Export and Investment Fund of Denmark is a government-backed institution that supports Danish exports and international investments to foster economic growth.

Ristone Holdings is an agro-industrial holding in south-eastern Ukraine.

According to Sayenko Kharenko, “the financing was provided under EIFO’s Ukraine Facility, which was established as a loan and guarantee scheme to provide long-term loans and guarantees for Danish exports to and investments in Ukraine. The facility to Ristone Holdings will support the group’s efforts to increase its production capacity, including the purchase of equipment from Alfa Laval, a global leader in the supply of innovative solutions for separation, heat transfer, and fluid handling in food processing.”

The Sayenko Kharenko team included Partner Anton Korobeynikov, Associate Vladyslava Mitsai, and Paralegals Polina Savinska, Artem Medvetskyi, and Mykola Suprunovych. 

Kyrylo Kazak has become the new Managing Partner of KPD Consulting, taking over from Ihor Kalitventsev.

Kazak has been with KPD Consulting since 2007.

According to the firm, “Kazak, along with the overall management of the firm, will continue to lead the labor law and white-collar crime practices.” 

“Despite the wartime challenges and difficult times for the country, the KPD team will continue to work diligently to provide support to our clients,” Kazak commented.

Vasil Kisil & Partners has successfully represented Kamianske Agro, part of the Dnipro Agro Group, in a tax dispute exceeding UAH 18 million.

According to Vasil Kisil & Partners, the case revolved around both the taxation of income paid to a non-resident and the legal procedures that tax authorities must follow during inspections. The Supreme Court nullified the tax authority’s decisions, finding that the authority violated the Tax Code of Ukraine regarding the ordering and conduct of inspections. 

The Vasil Kisil & Partners team included Attorney at Law Yehor Svidlo and Associate Alina Ratushna.

The Agreement on Conformity Assessment and Acceptance of Industrial Products (“ACAA”) is an intermediary step for Ukraine to benefit from the mutual recognition of product quality between the EU and Ukraine until our country becomes a full EU Member State.

The ACAA covers 27 groups of industrial goods/technical regulations. Ukraine’s ACAA implementation plan was sequenced in priority sectors to allow a step-by-step sectoral implementation of the ACAA. The initial stage will only apply to three sectors designated as Priority I: machinery, electromagnetic compatibility and low-voltage equipment.

The ACAA implementation foresees an update of the Ukrainian (i) technical standards on the conformity of industrial goods, (ii) the vehicle of certification of such goods (Ukraine’s National Qualitive Infrastructure) and (iii) market surveillance rules in line with EU standards. Ukraine has achieved significant progress in all three directions.

By December 2024:

• The Law of Ukraine “On State Market Surveillance and Control over Non-Food Products” (“Market Surveillance Law”) was significantly updated, including provisions on (i) the increased fines for the business introducing the product on the market and (ii) inspection procedure for market surveillance and customs authorities (21 December 2024);
• The market surveillance of non-food products was fully restored after a moratorium was introduced during the full-scale invasion in 2022 (27 December 2024);
• The State Service of Ukraine on Food Safety and Consumer Protection approved a plan of sectoral inspection of imported goods for 2025 (9 December 2024).

The remaining core legislation harmonization is expected to be covered throughout 2025.

Key changes

The key changes, also applicable to Ukrainian and foreign businesses offering goods to Ukrainian consumers, are the following:

• Restored regime of inspections by market surveillance authorities for producers and market introducers (importers, dealers) focused on the designated high-risk products (e.g., toys, electric equipment and lighting devices);
• Increased cooperation between market surveillance and customs authorities; and
• Significantly increased fines for product non-compliance (up to UAH 340,000 or app. USD 8,100 for each violation).

Further anticipated changes in 2025

The ACAA track requires the Ukrainian government to adopt:The Draft Law 12221 amending the Law of Ukraine “On Accreditation of the Conformity Assessment Bodies” introducing new provisions regarding conformity assessment procedure and requirements towards the conformity assessment bodies;

• The Draft Law 12426 overhauled the Market Surveillance Law in line with the EU requirements:
  • introducing a new sector of market surveillance in E-Commerce (or other kinds of distant sales);
  • introducing the requirement to establish a local Ukrainian representative for a foreign producer to cooperate with local market surveillance authorities;
  • introducing new tools and means of cooperation between the EU and Ukrainian market surveillance authorities;
  • adjusting the inspection procedures by market surveillance and customs authorities; and
  • introducing penalties and corrective measures for online retailers (marketplace providers).

The expected updates extensively cover a large share of the remaining legislative gap for Ukraine to meet ACAA requirements. The addressed changes also already implement the newly adopted EU Regulation 2023/988 of 10 May 2023 on General Product Safety (“GPSR”).

Recommendations

Our recommendations for the business producing/disseminating non-food products in or importing to Ukraine are as follows:

• Reassess and update your internal product assessment procedures, product labelling, representation in Ukraine and compliance with EU technical standards.
• Liaise with your import supply chain partners (e.g., importers, distributors, online retailers) and establish a new internal process that is compliant with the current and forthcoming changes.
• Update your procedures for internal communication strategies and consumer/authority response teams to meet requirements for a speedy reaction to incident reports, customer complaints and requests and orders from EU/Ukrainian market surveillance authorities.

By Ario Dehghani​, Counsel, and Volodymyr Stetsenko, Associate, Baker McKenzie

Dentons has advised Guris on the connection of its solar power plant to the connection grid of its wind farm in Ukraine.

According to Dentons, Guris is a Turkiye-based group of companies with more than 40 affiliates and 8000 employees worldwide, including in Ukraine. “In Ukraine, it has developed, built, and been operating Ovid Wind Power Plant, the first wind plant in the Odessa region with nine 3.6 megawatt turbines.”

The Dentons team in Kyiv was led by Partner Maksym Sysoiev.

Avellum has advised Ukrnafta on obtaining approval from the Antimonopoly Committee of Ukraine for the acquisition of Shell’s Ukrainian business – a network of petrol stations.

Ukrnafta is a Ukrainian oil producer.

Shell is an energy company known for its extensive network of petrol stations. It operates over 47,000 stations in more than 80 countries, serving more than 33 million retail customers daily. According to Avellum, in Ukraine, Shell operates a network of 118 active petrol stations, ranking among the top 10 networks by sales volume.

“The Supervisory Board of Ukrnafta approved the [transaction], as the acquisition of the business, managed for 15 years by a reputable international group, will provide Ukrnafta with an opportunity to expand its petrol station network and market share, which corresponds to the company’s development strategy,” stated Ukrnafta CEO Serhii Koretskyi.

The Avellum team included Partner Mykyta Nota, Counsel Anton Arkhypov, and Associates Veronika Humeniuk and Yuliia Bulenok.

Sayenko Kharenko has advised the Export and Investment Fund of Denmark and additional banks on a EUR 370 million project finance facility for the expansion of DTEK’s Tyligulska wind farm. 

According to Sayenko Kharenko, with DTEK financing the remaining project costs, the total investment stands at EUR 450 million, making it the largest private sector investment in Ukraine since Russia’s 2022 invasion and the biggest private investment to date in the country’s energy sector. The financing, backed by a guarantee from EIFO, will facilitate the purchase of 64 wind turbines from Vestas. DTEK plans to quadruple the wind farm’s capacity from 114 megawatts to 500 megawatts, boosting its turbines from 19 to 83. Once fully operational, Tyligulska is expected to generate 1.7 terawatt-hours of electricity annually – sufficient to power 900,000 Ukrainian households.

In 2021, Sayenko Kharenko advised DTEK Renewables on the construction of the Tiligulska Wind Park (as reported by CEE Legal Matters on March 18, 2021).

The Sayenko Kharenko team included Partners Anton Korobeynikov and Igor Lozenko, Counsel Tymur Enkhbaiar, Senior Associates Oles Trachuk, Natalia Hutarevych, and Taras Bondarenko, Associates Vladyslava Mitsai, Natalia Khmelovska, and Yevgen Koval, and Junior Associates Victoria Chorna and Maksym Kysil.

Sayenko Kharenko could not provide additional information on the matter.

Integrites has advised German-French defense contractor KNDS on a joint venture with a Ukrainian partner to maintain, refurbish, and overhaul Gepard self-propelled air defense systems.

According to Integrites, the venture will establish service facilities on Ukrainian territory – crucial for reducing logistics costs and turn-around time, thereby rapidly returning serviced Gepards to active use by Ukraine’s Armed Forces.

KNDS established its presence in Ukraine in 2024 (as reported by CEE Legal Matters on October 7, 2024).

The Integrites team included Senior Partners Julian Ries, Illya Tkachuk, and Vyacheslav Korchev, Partner Viktoriya Fomenko, Counsels Nataliya Kovalyova and Vasyl Yurmanovych, and Junior Associate Diana Kostina.

Integrites could not provide additional information on the matter.

Sayenko Kharenko has provided pro bono support for a cultural initiative that aims to set war-time poems, written by Ukrainian defenders, to music. 

The Sayenko Kharenko team is led by Partner Bohdan Nazarenko who, according to the firm, is a National Guard serviceman and poet who has published two collections of poems penned by himself and fellow soldiers, many of whom have either fallen or been severely affected by the conflict. 

The Sayenko Kharenko team also included Partner Oleg Klymchuk and Associates Anastasia Finko and Ihor Korohod.

A new law that will significantly improve the grid connection of renewables was approved by the Ukraine’s parliament, the Verkhovna Rada, on January 14, 2025.

The Law on Amendments to Certain Laws of Ukraine in the Field of Energy and in the Field of Heat Supply to Clarify Provisions Related to the Martial Law in Ukraine (the “Law”) on the basis of draft law No. 9381 dated June 13, 2023 also changes certain regulatory aspects related to the renewables projects. On January 17, 2025 the Law was signed by the chairman of Verkhovna Rada and submitted for the president’s signature. Unless vetoed by the president, the majority of the Law’s provisions will enter into force on the date following its official publication by the president.

Once the Law takes effect the necessary secondary legislation must be adopted within the following timeframes:

• By the Cabinet of Ministers of Ukraine – four months from the Law’s date of entry into force.
• By the National Energy and Utilities Regulatory Commission (the “Regulator”) – six months from the date taking effect by the Law.

Please find below an overview of the key changes introduced by the Law:

1. Extension of the term of the grid connection agreement and technical conditions

1. Technical conditions for the grid connection of power facilities to the distribution and transmission grids are valid for the term necessary to construct the power facilities but not more than three years from the date of its issuance. Please note that until the Law enters into force under the current rules, the term of the grid connection conditions for solar power plants are two years and for other renewable energy power plants – three years.If the design documentation for connection is approved (if required by the grid connection agreement), the grid connection fee is paid and the documents necessary to carry out construction works are obtained, the term of the technical conditions is extended for as much as six years from the date of the grid connection agreement.
2. If the approved design is absent or the grid connection fee is not paid during the term of the technical conditions, the respective grid connection agreement is deemed terminated.

2. New rules for payment of the grid connection for connecting to the transmission system

1. When an applicant for the technical conditions to the transmission grid obtains the technical conditions, it is obliged to pay the grid connection fee in an amount of UAH equivalent to €10 for each kW of the requested capacity for connection. It is paid as follows:
   1. 50 percent within 30 days after obtaining the technical conditions
   2. 50 percent within 12 months after obtaining the technical conditions unless otherwise determined by the grid connection agreement or earlier termination of the agreement by the connecting company
2. The company entitled to connect its facilities under the grid connection agreement (the “Connecting Company”) is entitled to request return of the paid grid connection fee if it initiates the grid connection agreement termination within six months after obtaining the technical conditions.
3. The Connecting Company must prepare the design documentation for grid connection and have it approved by transmission system operator within 12 months after obtaining the technical conditions. If it fails to do so, the grid connection agreement is deemed terminated and the paid grid connection fee is retained by the transmission system operator.
4. Connecting Companies that currently hold technical conditions for connecting to the transmission system must bring their grid connection agreements in line with the rules discussed above within three months after the Law has taken effect and pay the grid connection fee indicated above as follows:
   1. 50 percent within 30 days after obtaining the invoice that is issued by the transmission system operator (the “TSO”) not later than 100 days after the Law has taken effect
   2. 50 percent within six months after making the first payment
5. If Connecting Companies with current technical conditions make the above payments, they are obliged to prepare the design for the grid connection and have it approved within nine months after the Law takes effect or initiate the termination of the grid connection agreement (and request already paid fees). Otherwise, the grid connection agreement is deemed terminated.

3. Special rules for extending existing grid connection agreements for RES Producers

If RES Producers entered into grid connection agreements (either TSO or DSO) before the entry into force by the Law, the grid connection agreement and technical conditions are deemed extended for three years from the date when the Law takes effect if the following conditions are satisfied:

• The grid connection agreement was valid as of the date of the Martial Law introduction (24 February 2022)
• On the date of entry into force by the Law the RES Producer:
  • Prepared the design for the grid connection and have it approved by the respective operator
  • Handed over such design documentation to the respective operator
  • Paid the grid connection fee in accordance with the grid connection agreement

4. The electricity producers connected to the transmission grid will be entitled to connect other electricity producers to their grid according to the conditions in the transmission system code; before the Law this was not possible

5. Cable pooling rules

1. The RES Producer and another electricity producer are entitled to connect in one connection point generational installations producing electricity from any energy source which was not possible before the Law.
2. Installed capacity of such installations may exceed the amount of the allowed (contractual) capacity but the capacity of output to the grid must not exceed the allowed (contractual) capacity.
3. The RES Producers and other electricity producers may connect installations of other producers to their grid as per the procedure to be established by the Regulator subject to the satisfaction of the following conditions:
   1. The total installed capacity of installations for production of electricity may exceed the amount of the allowed (contractual) capacity but the capacity of output to the grid must not exceed the allowed (contractual) capacity.
   2. Separate metering of electricity by installations owned by different producers.

6. Grid capacity booking for wind projects

1. Companies willing to connect wind farms with the installed capacity 20 MW and more (the “WPP Developers”) may enter into the capacity booking agreement with the TSO on the basis of the standard form to be approved by the Regulator and in accordance with the procedure established by the transmission system code.
2. Under the booking reservation agreement, the TSO books technical solutions for the connection scheme of the generating facilities of the WPP Developer, and the WPP Developer must submit applications for connection of electrical installations and conclude a grid connection agreement within two years from the date of the agreement.
3. Within 20 calendar days from the date of the agreement, the WPP Developer must deposit to the escrow account the capacity booking fee in an amount equivalent to €5 per 1 kW of capacity booked under the capacity reservation agreement in accordance with the official exchange rate set by the National Bank of Ukraine. If it fails to pay the capacity booking fee within the specified period, the capacity booking agreement will be terminated.
4. The connection scheme under which the capacity booking agreement is made is determined by the TSO. The WPP Developer must develop the relevant design documentation in order to determine the final scope of work required for the implementation of the capacity delivery scheme, and the TSO must prepare a technical solution based on the approved design documentation.
5. If the WPP Developer applies to the TSP within the period specified in such agreement with an application for connection of the electrical installations booked under the capacity booking agreement, the capacity booking fee paid under the capacity booking agreement is credited towards the payment for connection of such electrical installations. If it fails to do so, the funds deposited in the escrow account are transferred to the transmission system operator and the capacity booking agreement is deemed terminated.

7. More flexible rules to use battery energy storage facilities (BESS) connected to generation facilities

1. RES Producers have been expressly allowed to withdraw electricity from the grid by the BESS connected to their generation facilities if they don’t have established “green” tariff, or even if the “green” tariff has been established, but respective RES Producers have left the balancing group of the guaranteed buyer, provided that
   1. At any time, the total capacity of the electricity that is supplied from the producer’s networks to the grid or withdrawn from the grid and supplied to the electricity producer’s networks does not exceed the capacity ordered for connection, taking into account the permitted (contractual) capacity of electricity production and consumption (respectively) of the electricity producer’s installations at the place of licensed activity
   2. There is a separate commercial metering of electricity flowing to/from the BESS
2. RES Producers with an established “green” tariff and remaining in the balancing group of the guaranteed buyer may use BESS only for withdrawing electricity from the generation facilities and not from the grid (the effective rules remain unchanged for them).

8. Improvements in the CFD auctions procedure for renewables

The quota of annual support that may be distributed to the companies controlled by one ultimate beneficial owner was increased from 25 percent to 50 percent.

9. Municipalities are allowed to additionally stimulate deployment of renewables in their territories

Local self-government authorities are expressly authorized to provide additional incentives for deployment of renewables upon approval of the program to incentivize development of the distributed generation in their territories. Express rules for connecting renewable power plants to the grid of state and municipal entities

10. Lease of state and municipal lands and other property to producers of electricity from renewables (RES Producers) with the offtake by the property owner/holder

1. The Law expressly allows the leasing out of municipal and state-owned lands or other property to RES Produces to install the respective renewables installation and BESS with the obligation of the property owner or authorized holder to offtake all electricity of RES Producers produced on such lands that will simplify contractual framework and procurement procedures for relevant agreements.
2. The respective power purchase agreements are executed for the term of the lease agreement.
3. Land and property owner/holder is entitled to become a prosumer with all rights under the Law of Ukraine on Electricity Market

11. Contest procedures for the construction of new generation capacity, which among other things envisage the capacity payment support mechanism, expressly cover generation facilities with BESS

12. Settlement of the debts in the power market

1. The Law allocates the excess income from activities of the dispatch (operational and technological) department in 2023 and 2024 for the following purposes:
   1. 45 percent to repay the TSO’s debt generated in the balancing market
   2. 45 percent to cover costs and repay the TSO’s debt to the guaranteed buyer under the service agreement for increasing the share of electricity generation from alternative energy sources with the guaranteed buyer
   3. 10 percent to cover costs and repay debts of TSOs to universal service providers under service agreements to ensure an increase in the share of electricity production from alternative sources with the universal service provider for the purpose of further payment by universal service providers for electricity produced by private households’ generating facilities using alternative energy sources

13. Suspension of certain enforcement procedures

1. Temporarily, for the duration of Martial Law, enforcement actions concerning the following debts of electricity market participants arising February 24, 2022 to September 1, 2024 have been suspended this includes:
   1. The inflation index for the entire period of delay in the monetary obligation
   2. 3 percent per annum of the overdue amount of the monetary obligation or other interest rate established by contract or law
2. The list of debtors and their debts, which include the guaranteed buyer and its debts to RES Producers, with the indication of court case numbers will be published on the Regulator’s official website.

This information does not constitute legal advice and is merely the opinion of the author.

By Maksym Sysoiev, Partner, Dentons