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AVELLUM Advises Ukrzaliznytsia on USD1
Billion Collaboration with General Electric
AVELLUM acted as the
Ukrainian legal counsel to Public Joint Stock Company “Ukrainian Railway” (“Ukrzaliznytsia”)
on a USD1 billion collaboration with General Electric Company (“GE”).
The project aims at renovating and modernising the locomotive fleet of
Ukrzaliznytsia through a long-term joint collaboration for the supply of up to
225 new locomotives and modernisation of 75 currently operating locomotives. In
2018-2019, GE is expected to supply 30 new locomotives to Ukrzaliznytsia
through a financial lease agreement with Joint Stock Company “The State
Export-Import Bank of Ukraine”.
AVELLUM advised
Ukrzaliznytsia on the framework agreement and financial lease agreement covering
30 locomotives.
This transaction signifies an
important step towards modernisation of Ukraine’s railway transport
infrastructure. Moreover, due to the localisation requirement, Ukraine will
account for 10% of production and supplementing parts with further increase of
up to 40% over a 10-year period.
Ukrzaliznytsia is a Public
Joint Stock Company with an operational network of railways in Ukraine reaching
about 22,000 km.
GE is a global technology
leader and supplier of equipment, services, and solutions to the rail, mining,
marine, stationary power, and drilling industries.
The AVELLUM team was led by counsel Maksym Maksymenko, with
support from senior associate Anna Melnychuk, under the general supervision of
managing partner Mykola Stetsenko and senior partner Glib Bondar.