AVELLUM ADVISES UKRZALIZNYTSIA ON USD1 BILLION COLLABORATION WITH GENERAL ELECTRIC
Avellum, Kyiv, Ukraine,
Wed, Feb 28, 2018
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.