Energy & Natural Resources
The Kiev team of CMS Cameron McKenna has been boosted by a variety of prominent energy mandates on the Ukrainian market. The team is a highly regarded counsel among the professional community. Among the recent deal history are advice to a subsidiary of Eni SpA,an Italian oil and gas major, on its signing of a production sharing agreement (PSA) with the Government of Ukraine; representation of Shell as for the first PSA for tight gas in Ukraine, signed between Shell, Nadra Yuzivska LLC and the Ukrainian Government. The past year the office boosted with finance work, notably advising international lenders — coordinators of the group of banks ING Bank N.V. and Deutsche Bank AG respectively on extending large-scale loans to DTEK, the largest privately-owned energy company in Ukraine. The power plant and renewable projects are rather diverse and comprehensive. The office worked together with PricewaterhouseCoopers to provide legal support to Donbasenergo on a project for the construction of the Slavyanskaya thermal power plant. Competition-related matters, real estate and construction, regulatory and contractual advice, as well as energy disputes formed vast expertise of the team. Vestas, EKOTECHNIK Czech s.r.o., Strabag, CNBM (China New Building Materials) International Corporation are among its clients. Vitaliy Radchenko, who coordinates the energy and projects practice at the Kiev office, was promoted to the partnership. He retained his top position on the market and was endorsed by peers for consistent presence in the major energy related projects of past couple of years. The practice benefits from involvement of experienced partners Olexander Martinenko and Daniel Bilak. Sergiy Gryshko (disputes), Olga Belyakova (corporate), as well as Volodymyr Kolvakh and Anna Antipova cover energy related advice.
Asters retained its strong market position in the sector and demonstrated involvement in landmark energy projects in the country. The team acted for Nadra Yuzivska LLC on the signing of the first production sharing agreement for hydrocarbons between the State of Ukraine, Shell Exploration and Production Ukraine Investments (IV) B.V. and Nadra Yuzivska LLC; and represented Nadra Oleska LLC on the PSA with the State of Ukraine and Chevron Ukraine B.V. Moreover, among the recent on-going projects is representation of State Company Nadra Ukrayny in connection with negotiation of the PSA with ExxonMobil, Shell, OMV Petrom for hydrocarbons to be produced at the Skifska block. Given its strong corporate and M&A practice, Asters is a vivid participant of corporate transactions in the sector, including acquisitions and joint ventures establishment, as well as regulatory work covering oil and gas, electricity, renewable energy. Energy disputes are also within the firm’s remit. Known as one of the strongest finance teams on the market, the project finance boosted with recent mandates, especially from EBRD and IFC. For example, the firm advised the EBRD in a number of projects within the frameworks of the EBRD’s program to support Ukrainian renewable energy sector. Partners Armen Khachaturyan and Tamara Lukanina, as well as Yaroslav Petrov, associate, are the leaders of the energy practice.
With the extensive international network of offices after the global merger, the Kiev team of Dentons (former Salans)strengthened its market positions. Several notable assignments were received from CUB Energy Inc., especially the short term prospectus USD 12.5 million offering at the TSX Venture Exchange (Canada) and the acquisition of a private Ukrainian oil and gas exploration company called Technogasindustria. It is worth noting that the firm advises TVEL Nuclear Fuel Company, one of the world’s leaders in nuclear fuel production and technology, in connection with construction of a nuclear fuel production plant in Ukraine. Energy practice in Kiev combines the expertise of partners from different practices groups: Oleg Batyuk (head of the corporate practice group), Igor Davidenko (corporate, tax), Myron Rabij (real estate, oil and gas), Markian Silecky (corporate, real estate), Ihor Mehedynyuk (corporate, real estate).
With its formidable clientele, Clifford Chance enjoys a high reputation and cross-border capacities. Among the clients are major international oil and gas companies, international financial institutions and banks. The firm is known for recent involvement in large-scale projects and finance. The Kiev finance team acted for the EBRD with respect to a EUR 48 million loan to LLC Novoazovskiy Wind Park. Yevhen Deyneko and Andriy Moskalyk are led by counsel Dmytro Fedoruk.
ANTIKA Law Firm has been one of the fast-growing Ukrainian counsels involved in major events in the energy sector over the past year. The firm is known for being a consistent choice for Nadra Ukrayny. Thus, the team of managing partner Alexey Kot and senior associate Ivan Zievakov advised Nadra Ukrayny in connection with the participation of Nadra Yuzivska LLC in the PSA and the Joint Operating Agreement relating to the PSA with Shell Exploration; and in connection with the participation of Nadra Oleska LLC in the PSA signed between the Government of Ukraine, Chevron Ukraine B.V. and Nadra Oleska LLC. The team of partner Alexander Burtovoy and Alexander Tretiakov, senior associate,is a steady counsel for energy saving and efficiency projects and energy performance contracting. For example, the team acted as a senior legal expert of Consortium worked on the EBRD Energy Performance Contracting Project Implementation Unit for the City of Dnepropetrovsk project. Finally, the dispute team of Andrey Kuznietsov and Maxim Korchagin boosted by representations regarding debt recovery under lease, sublease agreements, sale and purchase agreements as well as disputes regarding license agreements in the sector of oil and gas exploration and production.
Representation of energy companies on corporate queries, financing and capital markets transactions, as well as busy mining regulatory advice featured the practice of Baker & McKenzie. The firm enjoys solid clientele from both international and local industrial heavyweights. The team, as guided by partner Oksana Simonova, acted as Ukrainian law counsel in a brokered private placement of shares of EastCoal Inc., a Canada-based mineral development company with assets in Ukraine, with the admission at the Alternative Investment Market of the London Stock Exchange. The Kiev office has been involved in landmark representations in the renewable sector. It advised holding DTEK with respect to the acquisition and installation of thirty wind turbines and equipment from Vestas Deutschland, a German division of the Danish Vestas Wind Systems AS for construction of the biggest wind power plant in Ukraine. The firm has experience of energy efficiency issues, environmental liability advice, PPP and dispute resolution. The Kiev practice of natural resources is headed by a co-managing partner SerhiyPiontkovsky. Olyana Gordiyenko received endorsements from peers.
Sayenko Kharenko continues to play a prominent role in the sector and traditionally advises on projects involving the largest industry companies. In its client representation in 2013 the firm advised on corporate issues, leases and production sharing agreements, competition law matters, structured financing, public and private placements of debt and equity, international arbitrations. The key highlight was acting on USD 189 million financing for the second construction stage of the Botiyevo wind power plant by DTEK. The firm also advised on Ukrainian competition law matters related to the acquisition of S&B Industrial Minerals, a global provider of industrial solutions based on natural resources, by a private equity fund Rhône. The arbitration team led by partner Tatyana Slipachuk represented the Russian subsidiary of one of the world’s leading energy solutions companies in arbitration against the Ukrainian buyer of energy equipment before the International Commercial Arbitration Court at the Ukrainian Chamber of Commerce and Industry; represented a Swiss oil trading company in FOSFA arbitration. The firm continues to advise on improvement to regulations governing energy performance contracting (EnPC) for public buildings in Ukraine to assist the creation of an enabling legal framework for ESCO projects in Ukraine. Partners Vladimir Sayenko, Andrei Liakhov, Nazar Chernyavsky, and counsel Konstantin Gribov were at the forefront of the majority of energy projects handled by the firm in 2013.
Arzinger’s energy practice encompasses power plants projects, energy supply, electricity regulation and renewable practice, as well as corporate and competition related matters. The practice team became a legal counsel to Rusatom on energy supply regulation, price formation, construction of electric power lines; advised Mercuria Energy on transit and export of electricity through and from Ukraine, on the purchase of emissions certificates. Notably, the firm continued to strengthen its renewable practice with particular attention to solar projects. Alter Energy Group instructed the firm for handling due diligence of target solar power plants in Vinnitsa and Zaporizhzhya Regions, as well as elaborating cooperation structure of Swiss renewable resource development and finance company and municipal authorities regarding concession. The division of partners competences within practice remains as follows: Wolfram Rehbock heads renewable projects, and Maksym Cherkasenko is responsible for the traditional energy workload.
DLA Piper in Ukraine is seen across major energy projects. In 2013 it took part in the transaction of sale of a 25% stake in Ukrgazvydobyvannya to DTEK, a major player on the Ukrainian energy market. The team continues to represent Toshiba in its large-scale project to construct wind power stations in Crimea, where it advises on financing, corporate, regulatory issues. The Kiev team has recently provided legal support to the leading international electric utility company with regard to the contemplated joint activity in sphere of onshore and off-shore oil and gas exploration and production in Ukraine, covering turn-key advice on entering the Ukrainian marker, regulatory environment, taxation and other issues. Oleksandr Kurdydyk, partner, Galyna Zagorodniuk, legal director, Mykhaylo Byelostotskiy, senior associate, are the primary figures of the practice.
Vasil Kisil & Partners is known for its strong expertise, especially in handling comprehensive projects in the mining field and upstream industry. Assignments from international players featured the recent workload of the firm. One of the notable projects in the portfolio is a continuous advising China’s largest producer of electrolytic manganese Hubei Changyang Hongxin Industrial Group Co., Ltd on developing the manganese deposit in Ukraine. The team covers all regulatory and transactional matters as well as other current matters of business operation. Another representation included acting as Ukrainian law counsel to Electricity de France (EDF) in negotiating and execution of the Agreement on sharing of hydrocarbons to be produced within Abiha and Kavkazka blocks, Mayachna area and the Subbotina structure between the State of Ukraine, Eni Ukraine Shallow Waters B.V., EDF Ukraine Shallow Waters Sas, LLC Vody Ukrainy, National JSC Chornomornaftogaz. From the renewable energy side, the firm represented Fenrir Private Capital Limited in course of construction of wind power plants in Southern Ukraine in partnership with a Chinese investor China Enterprise New Cosmos International Asset Management and Investment Group. The 8-lawyer team is headed by a well-known partner, Oleg Alyoshin. Alexander Borodkin, Natalia Dotsenko-Belous, and Vladimir Igonin, produce key input.
AstapovLawyers international law group is regularly seen servicing key international and national companies. With the support of strong corporate/M&A practice, the group demonstrated an impressive roster of transaction-based work. Regulatory assignments covered advising the State Company Energorynok and Enel. Given its international trade expertise, the group represented BNK Ukraine in the course of anti-subsidy investigation concerning imports into Ukraine of several oil-refined products. The recent renewable workload includes solar and wind energy related projects. Among the group’s clients are NNEGC Energoatom,Integra Group, UFES, Filasa International, Dighton, Bunge, Soliffen a.s., Energorynok. The team is led by the firm’s partner Oleh Malskyy, with key contribution from Ivan Trofimenko and Victoria Buzhor.
Chadbourne & Parke expanded its upstream expertise and endorsed sectoral M&A dedication. The team provided legal advice to the AES Corporation on its sale of two Ukrainian regional power distribution companies — 89.12% equity interest in AES Kyivoblenergo and 84.56% equity interest in AES Rivneoblenergo, to VS Energy International, a leading energy group in Ukraine.Kiev managing partner Jaroslawa Johnson is the main figure. Adam Mycyk**, who rejoined Chadbourne as an international partner in February 2013, strengthened transactional capacities in the sector.
** In August 2014 Adam Mycyk joined the Kiev office of Dentons as a partner.
In 2013 Moris Group demonstrated solid sectoral mandates centered to energy-related investment projects and administrative proceeding to a total value exceeding USD 440 million. The group continues representation of its long-standing client AvangardCo IPL in a USD 92 million investment project of biogas complex construction. The team developed renewables practice and acted for LLC Prenecon Ukraine Ltd, a local subsidiary of the leading corporation specialized in construction and development of renewable energy projects, regarding investment project of wind power stations construction in highlands including power transmission lines and technology roads; and LLC Sunline ST, Ukrainian company specialized in construction of sun power stations, in USD 8 million investment project of sun power station. Being extremely active on the dispute resolution front, this domestic dispute team represented LUKOIL (Odessa Oil Refinery PJSC) and Karpatnaftokhim LLC, Ukraine’s major petrochemical producer, in a number of tax disputes. Taras Gerula and Oleg Parylyak were the lead partners.
EY has unique credentials for being a consistent advisor in the energy sector. The Kiev team recently handled tax, customs and legal advisory and deal support for several of the world’s leading oil and gas companies with respect to their PSA with the State of Ukraine. Furthermore, the team has been providing pre-deal legal and tax advice to a large Middle East oil and gas company eyeing potential acquisitions in Ukraine and rendered advice to one of the largest Ukrainian oil and gas companies regarding its restructuring so as to comply with European Energy directives. Senior managers Iryna Kalyta and Borys Lobovyk are led by partner and law leader in Ukraine, Albert Sych.
The domestic legal practice FCLEX presented a solid roster of large scale projects with vivid focus on complex engineering, procurement construction issues and administrative proceedings. The reported value of sector-wise client mandates throughout 2013 is about USD 1 billion. The firm advised on development of Eristovo mine plot’s infrastructure as well as overhaul repairs of the Bilotserkivska CHP plant hydraulic and boiler equipment. The team, as led by senior partner Victor Barsuk, advised Raw & Refined Commodities AG, one of the world leading suppliers of raw materials and ferroalloys, on its USD 80 million distribution operations. The litigation team represented Turbogaz (Uzhgorod) in a dispute with the Ministry of Economy over the failure to surrender foreign exchange proceeds. In 2013 the tax practice headed by partners Victor Barsuk and Sergey Chuev carried out sectoral representation in a total of 23 tax litigation cases. The clientele includes Ferrexpo, VA Intertrading, Ukrzakordongeologia.
Given its corporate finance dedication, throughout 2013 Avellum Partners handled acquisition and finance work. The firm acted for PTO Consolidated on the due diligence and potential acquisition of certain oil and gas assets in Ukraine. The finance team, as headed by Glib Bondar, acted as legal counsel to DTEK Group (the biggest corporate borrower in 2013) on its Eurobond issues and advised the EBRD on providing finance from the Clean Technology Fund to EcoProd. Kostiantyn Likarchuk, partner, who is in charge of arbitration practice, advised Invar International Inc., a group of private American investors, in a multijurisdictional shareholders dispute involving two private power plants under construction, including arbitration under the Swiss Rules of International Arbitration.
The new brand name of Marchenko Danevych law firm, established as a result of merger of Danevych Law Firm and Ulysses in December 2013, accumulated expertise from both teams. From the latest renewable workload is advising COGIPOWER, Rentechno LLC, Afelio on their solar power plants projects in Ukraine. It is noteworthy that the team acted for the International Finance Corporation as for the analysis of “green” tariff legislation in Ukraine for IFC’s Cleaner Production program. The team obtains diverse assignments on the regulatory, contractual and corporate issues in the electricity market as well as experience for implementation of projects in power industry and bioenergy field. Among others, the representative client list of the amalgamated firm include Deutsche Bank, LeA Consulting LLC, Eugroil LLC, Vireo Energy AB, Danosha LLC, Zakarpattyasolar LLC, Natural Stones CZ, Gess Construction LLC, Farm Omelyanenko. The head of the energy team, Maksym Sysoiev, counsel, received endorsements from peers.
The tax and legal department of KPMG Ukraine is well placed for handling comprehensive projects. The broad taxation expertise performed by Sergey Popov, Oleg Chayka and Maksym Zavalnyy is highlighted with advising a large European hydrocarbon producer on the tax aspects of the contemplated execution of a PSA with the Ukrainian government. The team of Tatiana Zamorska, Oksana Olekhova and Yuriy Katser continued advising Martifer, international PV plant constructor and operator, on three PV plant projects in Ukraine based on EPC project delivery strategy. In terms of maintaining its renewable projects, the team delivered comprehensive tax and legal support on various ad-hoc matters related to the supply of equipment and structuring of operations in Ukraine.
Renowned for its energy and infrastructure projects in the CEE region, Wolf Theiss became a rather vivid player in Ukraine in 2013. The firm advised Ithuba and its subsidiaries and affiliates in Ukraine and Austria on the development of upstream natural gas projects in Ukraine. Another recent highlight saw representation of LUKOIL International GmbH on a complex cross-border M&A transaction for the sale of its Odessa Oil Refinery Plant. The practice is headed by Kiev managing partner Taras Dumych, and includes Olena Vardamatska and Oksana Volynets.
Schoenherr demonstrates involvement in power plants projects. The Kiev team, as led by partner Denys Sytnyk, continuously advises Andritz Hydro, a global supplier of electro-mechanical systems and services or hydropower plants, on various regulatory issues, including construction licensing, corporate law and state procurement issues in connection with participation in tenders for Ukrainian hydro power projects.
Until recently a major Ukrainian owner of a chain of petrol stations and petroleum refinery, has instructed VB PARTNERS, a mid-sized domestic player, on a landmark sectoral acquisition. The firm represented the group in the course of its acquisition of the Odessa Oil Refinery Plant from LUKOIL. Aleksandr Lukyanenko and Denys Bugay worked on the project.
Given its strong dedication to the taxation area, the International Legal Center EUCON under the guidance of its managing partner Yaroslav Romanchuk, and the head of the litigation practice, Yevgen Petrenko, handled representation of JV Kerscher in court proceedings regarding cancelation of the decision of the Kiev State Ecology Inspection on a temporary injunction on petrol station activity.
Grischenko & Partners, one of the most experienced and recognized local practices in international investment arbitration, is led by Sergei Voitovich. Last year the firm, together with King & Spalding, represented the state of Ukraine in USD 1 billion international arbitration with JSC Tatneft (Russia) and represented the State Company Energorynok in submitting an investment claim against the Republic of Moldova.
Gramatskiy & Partners continued to strengthen its practice around core expertise in electricity production and distribution, facilities and energy saving technologies transfer. The team delivers day-to-day advice to OJSC Teploenergomontazh and Teploengineering Ltd in the course of their comprehensive state and municipal infrastructural projects. Among recent notable representations are a number of due diligences of upstream companies with legal work on their pre-merger preparations. Clients regularly seek advice on legal support of engineering and technological solutions enforcement as well as importers, distributors of energy technologies and related products and services. Yuriy Zabiyaka and Mykhailo Soroka are the key figures.
In 2013 ENGARDE focused on regulatory advisory and was instructed by Energo Produkt, Regal Petroleum Plc, Ukrgazvydobuvannya LLC. The team represented foreign investors in the acquisition of Ukrainian oil and gas company Ukrgazvydobuvannia LLC. Andriy Vyshenvsky and Roman Ognevyuk are active throughout the sectoral mandates.
The Ukrainian office of Peterka & Partners demonstrates an impressive renewable projects portfolio and enjoys a variety of Czech clientele. The Kiev team advised a Czech renewable projects developer, Fotovoltaicky Servis s.r.o., in connection with solar power plant projects in Ukraine; NWT a.s., one of the most important technological and innovation companies in the Czech Republic, on acquiring a solar project in Ukraine. Another notable experience included comprehensive legal support to Bigadan A/S on the construction of a biogas plant. Among other representative clients are Filcon A/S, Bigadan A/S, Tricin, s.r.o., Larive RF B.V. Nina Sydorenko and Tetyana Kistynyuk are the main practitioners.
The compact Kiev law firm Misechko & Partners is visible across litigation cases. In 2013 the team, as led by founding partner Volodymyr Misechko, successfully represented the interests of Olimp-S with LUKOIL Ukraine in a debt collection dispute.
Lexwell & Partners is known for its consistent advising large industrial groups. The firm acted for VS Energy in the acquisition of Kyivoblenergo and Rivneoblenergo from AES Group. Another standout representation is advising CRH Group on the sale of emission reduction units resulting from joint implementation under the Kyoto Protocol within the Group. Andriy Kolupaev, Igor Nagai and Irina Mospanjuk are the core team members.
Given the primary dispute resolution focus of LCF Law Group, it is prominent across contentious matters. A long standing client of the group, Kuwait Energy Ukraine, entrusted it for representation in disputes with NJSC Naftogaz of Ukraine and with Corporation UkrBud and Ukrtransgas on collecting of natural gas, oil and gas condensate stocks. This domestic team is led by managing partner Anna Ogrenchuk and includes Olena Volianska and Yuriy Didenko.
Integrites has been primarily seen in the corporate area and has shown remarkable dispute resolution performance. The corporate practice, as led by Yaroslav Abramov, counsel, advised Okyanus, a major subcontractor engaged in the New Safe Confinement project at the Chernobyl Nuclear Power Plant, on matters related to renewal of its corporate presence in Ukraine, including settling of relevant corporate and regulatory matters both in Ukraine and at the level of parent company. Under the guidance of its senior partner, Vyacheslav Korchev, the team acted for Air Liquide Engineering and Services as for the recognition and enforcement of an ICAC Ukraine arbitral award on the territory of Ukraine.
Ilyashev & Partners, one of the top regarded litigation domestic firms, regularly represents large industrial energy consuming clients like Sumykhimprom and ArcelorMittal. Its managing partner, Mikhail Ilyashev, is the primary contact.
In 2013 Beiten Burkhardt maintained energy-related assignments in Ukraine. The Kiev team advised WKN Windkraft Nord AG on wind farm development. It also acted for centrotherm photovoltaics AG for the delivery and construction of a silicon production plant in Ukraine. The office was led by Kiev partners Julian Ries (wind and solar; natural resources), Oleksiy Feliv (wind and solar), Oleh Zahnitko (project finance, power market). At the end of 2013 the office of Beiten Burkhardtin Kievwas closed, and the teamjoinedthe Kiev office of Gide Loyrette Nouel.
Gide Loyrette Nouel was engaged in corporate and M&A projects involving several jurisdictions. The Kiev office took part in the overall restructuring of Sibelco Group’s Ukrainian business and advised the Belgium Group on the sale of Donbas Ceramic Bodies, its Ukrainian subsidiary specializing in processing of clays bodies. Senior Lawyer Illya Tkachuk acted on the deal overseen by partner Bertrand Barrier.
Irina Paliashvili, president of RULG — Ukrainian Legal Group, is a recognized professional in Ukrainian and international legal circles. The team of Legal Alliance Company, as guided by partner Oleksii Bezhevets, handled representation of the international intergovernmental organization, the Joint Institute for Nuclear Research, in negotiations with the State of Ukraine. Jurimex Law Firm with its broad-based land law expertise led by Oleksandr Shyshkanov, acted for LLC Kiev Yug Plus in getting regulatory approvals for subsoil use and land lease. The team of Gryphon Investment Consulting Group, as led by Vasyl Marchenko, advised on a wide scope of energy taxation issues. Lavrynovych & Partners was instructed by VS Energy International on a variety of issues. Attorneys’ Association Gestors is engaged in high profile infrastructure projects.
Regional Desks of International Law Firms
Energy transactions are one of the core competences of the Ukrainian regional desk at Morgan Lewis & Bockius. The desk consists of 10 legal practitioners and is led by US and English-qualified partner Carter Brod. In 2013 the firm has been involved in major energy projects in Ukraine. The international powerhouse team advised Ukrainian state-controlled gas company Nadra Yuzivska on a recently signed production sharing agreement advancing its high-profile gas drilling joint venture with multinational oil and gas company Royal Dutch Shell. Morgan Lewis & Bockius acted as a Russian law counsel and was led by Moscow-based partner Jon Hines, and supported by associates Alexander Marchenko and Ksenia Lopatkina; assisted by partner David Asmus and associate Jennifer Mosley from Houston, and partner Nicholas Greenwood (London). Another standout representation is acting as a general international law counsel to Nadra Oleska on certain aspects of the recently announced shale gas exploration and PSA deal between energy giant Chevron and the Ukrainian government to develop the Oleska field. The team was led by Jon Hines and includes Alexander Marchenko, Ksenia Lopatkina and Jennifer Mosley.