Ukraine

Ukraine

Here’s a selection of our energy sector credentials in Ukraine:

Ukrainian Gas Transmission System Unbundling - Advising JSC Main Gas Pipelines as well as international development partners, including the Energy Community Secretariat, on unbundling of the former gas transmission system operator . Our team has been involved in a landmark project in Ukrainian energy sector aimed at establishment of a certifiable gas transmission system operator. Establishment of a new independent and trusted gas transmission system operator is a cornerstone for creation of a transparent and efficient gas market in the country and procurement of new contract with Gazprom, and respectively for uninterrupted gas supply to Europe.

An international company operating at energy market - Providing legal support to client in recognition and enforcement of the Award of Arbitration Institute of the Stockholm Chamber of Commerce regarding collection of 20 m euro fine and penalty according to the natural gas supply agreement from NJSC Naftogaz (major Ukrainian state-owned oil and gas company).

A Lithuanian company active in renewable energy sector - Advising the client on development of solar photovoltaic plant projects in Ukraine with 45 thousand MWh annual capacity entailing investment in the amount of EUR 30 mln.

World Bank - Advising the client in connection with elaboration and implementation of best practice review of different unbundling models for natural gas Transmission System Operator (TSO) in Ukraine. The legal advice covers corporate, regulatory, commercial law matters, arbitration issues, and includes, inter alia, revision of a set of documents required for implementation of TSO unbundling, preparation of a presentation on the unbundling models in Ukraine, and support to the World Bank team at meetings with international development partners, representatives of gas industry and the Government of Ukraine.

Globally active service providers in the renewable energy sector - Advising and supporting the client in connection with market entry in Ukraine and provision of EPC and O&M services in renewable energy sector in Ukraine, including advice on relevant corporate, construction, employment, tax, financing and regulatory matters applicable to renewables in Ukraine. Advising on legal and regulatory aspects of provision of EPC and O&M services to photovoltaic parks in Ukraine. Drafting and negotiation of the EPC contract.

Scatec Solar ASA| Providing assistance in acquisition of a stake in solar projects portfolio from Rengy Development, one of the largest developers and independent solar power producers in Ukraine, with the aim to build solar power plants with the total capacity of 47 MW in the Mykolaiv region of Ukraine. Acquisition of two solar projects in the Cherkassy region of Ukraine, with a capacity of 33 MW and 50 MW. Acquisition of the 148 MW Progressovka solar power project in the Mykolaiv region. Due diligence, acquisition and restructuring of 2 solar projects (100 MW) in preparation for EBRD financing. Acquisition of a solar power project with the capacity of 50 MW in the Kherson region of Ukraine. Winding up of amendments to Progressovka Project Agreements.

EuroCape New Energy Limited - Advising on real estate, construction, regulatory, corporate and energy law issues with regard to the construction of a 500 MW wind power plant in Ukraine; we advised the client on a variety of matters including on: due diligence of the project for the purposes of attracting financing from equity investors and IFIs (including corporate, regulatory, land, environmental, interconnection issues and preparation of the overview of electricity market in Ukraine).

  • regulatory: licensing and permitting regime for wind farms in Ukraine, as well as peculiarities of “green” tariff application
  • PPA: assistance in negotiating the power purchase agreement with the state power off-taker adaptation of the standard power purchase agreement in line with requirements of the financial institutions
  • grid connection issues: connecting to the national power grid of Ukraine;  re-negotiating technical conditions and interconnection agreement with the grid owner; transmission of electricity, including transmission through high voltage networks and title to the 330 kV electricity lines; third parties’ rights of connection to a privately owned high voltage power line; legal aspects of the technical upgrade and modernisation of the power substation; legal requirements for financing of the interconnection works
  • taxation and import/customs regime for a wind farm/equipment
  • land issues: land allocation and rezoning issues in relation to a start-up wind farm project; establishment of servitudes and safety zones for electricity lines and wind turbines
  • construction: project design and approval process, EPC contracts & construction
  • financing of the project by international financiers, including IFIs, including the senior debt of USD 150 million financing provided by the Overseas Private Investment Corporation (“OPIC”), the U.S. Government's development finance institution for the 1st phase of the project (98 MW) (VLC Renewables, a renewable energy investment fund formed through a partnership between Vitol and Low Carbon, has co-invested with LongWing Energy SCA in the Project, while GE Energy Financial Services has made a minority equity investment), including advice on  (i) types of possible governmental support of the financing project, including state guarantee, (ii) governmental bodies’ capacity and authority for providing such support and entering into relevant agreements and legal procedures for that; (iii)  preparation and negotiation of bankable draft of the power purchase agreement in cooperation with the loan providers and energy regulator.

Acciona Energy - Due diligence of a wind power project with the proposed capacity of 76.5 MW in Ukraine.  Establishment of a joint venture with UDP Renewables, a leading investment and development company in the Ukrainian renewable energy industry, in relation to three solar power plants with a total capacity of 33.3 MW in the Odesa region of Ukraine. Full assistance for the client in contract negotiations in relation to its activities in Ukraine. Due diligence and further acquisition of several solar projects in central Ukraine and providing legal support regarding their operational maintenance.

AKUO Energy - Advising on financing of 110 MW project in Ukraine by EBRD, Proparco, DEG and other financial institutions.

Air Products PLC - Advising on its contemplated establishment of a joint venture in Ukraine with Arcelor Mittal, the world’s leading steel and mining company, in connection with contemplated construction of a large air separation unit. Advising on joint business venture with a Ukrainian producer of rare gases.

Key contacts

Contact
Picture of Vitaliy Radchenko
Vitaliy Radchenko
Partner
Head of Energy & Projects, CMS Cameron McKenna Nabarro Olswang
Maria-Orlyk-CMS-UA
Maria Orlyk
Partner