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.