July 2021 – Kinstellar’s Kyiv office has acted as Ukrainian legal counsel to the European Bank for Reconstruction and Development in connection with a EUR 10 million revolving credit facility for ERU Trading LLC, a leading privately owned gas trader in Ukraine, for the financing of its working capital needs. Among other matters, Kinstellar's team has extensively advised the Bank on regulatory matters related to the storage of natural gas in Ukraine and on the creation of security over the natural gas in storage.
Matteo Patrone, Managing Director, Eastern Europe and the Caucasus (EEC) at the EBRD, comments on the signing of the loan agreement between the EBRD and ERU Trading: “By supporting a privately owned gas trader, we are supporting the further liberalisation of Ukraine’s energy market, greater competition and security of supply. Private gas trade also promotes greater utilisation and integration of Ukraine’s transportation and storage infrastructure with the EU gas market.”
Kinstellar’s team was led by Andriy Nikiforov (Counsel, Banking & Finance) and also included Olena Kuchynska (Co-Managing Partner, Energy), Anna Makedonska (Senior Associate, Banking & Finance) and Oleksandr Plachynta (Associate, Energy, Dispute Resolution).
The EBRD is the largest institutional investor in Ukraine. In the past two years alone, the Bank has committed EUR 2 billion to the economy. Investments are combined with support for policies that promote the fight against corruption, good governance of state-owned enterprises, structural reforms and a more transparent business environment.
ERU Trading is the largest private importer of natural gas to Ukraine from Hungary, Slovakia and Poland. The company secures low cost gas from the European Union during the summer season and stores gas in Ukraine for domestic sale in winter.
For more information please contact Andriy Nikiforov, Counsel, at andriy.nikiforov@kinstellar.com.
