Vasil Kisil & Partners' counsellor Natalia Dotsenko-Belous advised Green Gas Ukraine Holdings B.V. on the development, coordination and structuring of the transactions for the sale of emission reduction units using forward contracts.

A public auction for the sale of emission reduction units public belonging to the public joint-stock company “Krasnodonugol", one of the largest coal companies in Ukraine engaged in mining and processing of coking coal and part of Metinvest Group's mining division, took place on November 16 on the Commodity Exchange "Perspective-commodity".   At the close of trading between the seller and the buyer entered into a forward contract for the delivery of emission reductions that have been issued by the State Environmental Investment Agency of Ukraine for the reduction of greenhouse gas emissions.

“The use of forward contracts in the structuring of the sale of emission reduction units opens up new opportunities for all parties involved in this transaction; it allows us to validate the regular (market) price of the transaction, it creates conditions for trading contracts with third parties (which is an operation that is not subject to VAT), and it also allows hedging. As of recently, forward contracts are becoming a widely used tool in many areas, from home sales prior to the sale of lease services," - comments Natalia Dotsenko-Belous.