A Milestone Year
“2009 was a milestone year for the development of alternative energy industry in Ukraine, Maksym Sysoiev, associate of the Paritet Law Firm, thinks. First of all, the Ukrainian Parliament established minimum fixed rates for a 'green tariff' till 2030 for electricity produced from certain types of renewables. The 'green tariff' has already been approved for more than 50 electricity producers. Parliament also established numerous tax, customs duty, and other exemptions and preferences for producers of biofuel, mostly from the beginning of 2010. Finally, since the beginning of 2009 Ukrainian companies can carry out joint implementation projects under the national procedure (Track 1) which made the procedure on JI projects faster as well as less complicated and expensive in Ukraine. These legislative changes caused significant interest on the part of foreign and local investors in the field of alternative energy. However, many of them remain hesitant about launching large-scale projects in this field because of the absence of necessary regulations and political instability”. As for the electricity market, the commentator stressed that electricity consumption has fallen due to the financial crisis, which caused the need to export electricity.
CMS Cameron McKenna is regarded among the strongest legal practices in energy and natural resources. Its diverse portfolio of such projects in 2009 included advising on construction of a wind park consisting of 180 wind turbines in Southern Ukraine; a Japanese industrial corporation on the Ukrainian electricity market’s structure; a Kuwaiti company on its acquisition of a Ukrainian oil and gas company; a leading developer and carbon broker of JI Projects in Ukraine, Russia and Bulgaria on the structuring of contracts for resale of ERUs at the European carbon trading platforms; sales of limestone and others. Partners Christina Maciw and Olexander Martinenko are named by peers.
In 2009 the energy and natural resources practice of Vasil Kisil & Partners advised clients on various matters involving all aspects of the oil, gas, mining industries, as well as subsoil use, including regulatory, transactional and environmental matters. It acted as a local counsel to Petrosibir with regard to its merger with Shelton Canada Corp.; to big Ukrainian industrial group, Kontinium, for acquisition of retail fuel stations in various parts of Ukraine. Its energy and natural resources practice successfully handled a number of projects related to exploration and production, licenses and concessions, energy facility development, environmental compliance, privatizations of enterprises in the energy sector, including tender process, investments, mining, oil and gas, electricity and emission trading. Oleg Alyoshin, a partner, Polina Zagnitko and Mykhailo Shchitka, senior associates, are the firm’s recommended practitioners in energy and natural resources.
Serving many clients of the energy and natural resources sectors, DLA Piper in Ukraine recently advised Gazprom, a Russian gas monopoly, on all aspects of the restructuring of a multimillion debt relating to supply of gas to Ukraine. TNK-BP, an international oil and gas company, was also supported by DLA Piper in a number of projects related to acquisition of gas filling stations networks in Ukraine. The team also handled several projects related to Kyoto Protocol — in particular, they advised several large industrial companies and carbon funds. Oleksandr Kurdydyk, a partner, had a key role in the practice. Dmytro Derkach and Yulia Logunova cover various issues related to projects.
Respected by the market due to its many years of expertise in the practice, the team at Magisters protected Energoatom’s interests in an ongoing case against VVD and advised client NJSC Naftogaz of Ukraine on its external debt restructuring.
Valentyn Zagariya, Andrey Reun and Oleksandra Fedotova represent the sector in the corresponding practice of Spenser & Kauffmann. Conducted works include assignment of rights of demand by the Gazprom group of companies to Rosukrenergo in favor of Naftogaz of Ukraine and due diligence of permits on use of subsoil, issued by the Ministry of Environmental Protection of Ukraine, within a deal on acquisition of an exploration field of subsoil.
Konnov & Sozanovsky has been heavily involved in regulatory work. The team focused on advising Schlumberger Oilfield Eastern Ltd on licensing issues to perform works on search/exploration for mineral deposits, on obtaining permits to purchase and use explosive substances and sources of ionizing emission. The recent highlight also included advising Papernia quartz sand quarry on different day-today issues arising in commercial activity. Yevgeniya Derbal and Helen Yaremchuk are recommended experts.
Sayenko Kharenko offers extensive experience and superb quality of legal support to companies engaged in energy and natural resources sectors. In 2009 the firm advised US and UK corporations on proposed joint ventures for exploration and production of natural gas in Ukraine; on obtaining over 20 merger clearances for the acquisition of a major chain of gas-filling stations in Ukraine; on a wide range of legal and regulatory issues related to the acquisition of a company involved in the construction of the largest wind electricity generating station. The practice of the team, which includes partners Vladimir Sayenko and Michael Kharenko, also covered financial restructurings in the energy and natural resources sector.
Asters lawyers, as headed by partners Vadym Samoilenko and Roman Kostenko, handled complex projects in energy and natural resources law, including oil and gas exploration, environmental law, including JI projects under Kyoto Protocol, and waste management. In 2009 Asters advised a major Central European energy company on various issues of corporate and securities law in connection with a share issue by its Ukrainian subsidiary; PhosAgro, a major Russian producer of chemical fertilizers, on Ukrainian energy law related to its subsidiaries and assets in Ukraine; an international clean energy company, in connection with implementation of a coal mine methane recycling project, etc.
Volkov Koziakov & Partners has been involved in corporate and litigation work. The team included Roman Drozhanskyi, a partner, and Olga Galaka, who successfully assisted a Middle East investor with assets in the Ukrainian oil and gas industry in connection with litigation against its Ukrainian partner.
The most notable projects of Andriy Kravets & Partners in 2009 include representation of the Estron Corporation Limited in a pre-judicial dispute regarding intentions of Odessaoblenergo to stop supplying electricity to a plant owned by Estron; Cadogan Petroleum Plc in connection with drafting an agreement on division of income from emissions trading under the Kyoto Protocol, and Glencore International AG, one of the world’s largest suppliers of raw materials, coal, and natural gas, on structuring the company’s business in Ukraine. Andriy Kravets and Vladyslav Lyaskovskiy are named among the firm’s leading experts on handling energy law issues.
In 2009 the Gvozdiy & Oberkovych team headed by Sergiy Oberkovych, was involved in a number of significant transactions, including a EUR 130 million pilot project on development of a bio electricity facility by Irish company Donegal FRS; EUR 40 million project on development and construction of an electricity plant in Eastern Ukraine; an EUR 25 million project on development and construction of co-generation facilities in Western Ukraine; an EUR 15 million project on construction of an electricity power plant financed by Ceskoslovenska obchodni banka.
Recent projects of Deloitte include advising on transit of energy resources through the territory of Ukraine, an oil transport company on establishing a bank and providing legal support for the audit of a gas transport company, including an analysis of licensing issues relevant to supplying gas. Dmytro Pavlenko, Sergiy Rabenko are named as Deloitte’s experts in this sphere.
Within the framework of INTEGRITES energy practice, the reputable team of lawyers consisting of Ruslan Bernatsky and Anna Tyshchenko focuses on providing comprehensive legal advice in projects related to the power and oil business. In 2009 INTEGRITES supported investment deals between the Nordic Environment Finance Corporation for several Ukrainian counterparties aimed at increasing energy efficiency within the framework of a green production program. This year the firm was also engaged as a legal advisor for the French construction company Novarka in a USD 560 million project to build a shelter over the radioactive remains of the Chernobyl nuclear power station.
The Clifford Chance team in Kiev worked on advising an international corporation in its negotiation of several joint ventures for oil and gas exploration and development with Nadra Ukrayiny, IUGAS in its dispute with Naftogaz of Ukraine and advising a leading metallurgical company in its negotiations with a Ukrainian steel mill. Nick Fletcher and Dmytro Fedoruk were key practitioners.
Yuriy Leonov of the Salkom law firm was engaged in representing a large foreign oil company in disputes with Ukrainian state bodies.
Ernst & Young provided legal due diligence for a Middle Eastern company that acquired an oil and gas company in Ukraine. Albert Sych and Iryna Kalyta handled the project.
Lexwell & Partners assisted an investor in collaboration with a state gas production company to realize an investment project involving the mining of gas. Andrei Kolupaev and Yuriy Katser were involved in providing assistance.
Borys Danevych and Maksym Sysoiev of Paritet Law Firm consult clients on various issues with regard to renewable and alternative energy sources, green tariff and biofuel projects under Kyoto Protocol action.
Legal Consulting Centre acted as legal adviser to Polskie Gornictwo Naftowe ³ Gazownictwo SA in negotiations with Naftogaz of Ukraine related to gas observation on the Polish-Ukrainian border. Artur Nonko took part in negotiations.
KPD Consulting gave advice on various issues of business activity to Kyivvodocanal.