Presently the energy sector of Ukrainian industry is under reform targeted at the further development of wholesale marketing of electric power and privatization of power stations, power providers and suppliers. The Ukrainian energy market is scattered, and power stations and power providers act quite independently.

As for the present moment, certain shares of all energy companies have been privatized. The percentage of private participation in these companies varies from 14.23% to 24% in electric power producing companies, and from 24% to 100% - in power providers and suppliers.

The lack of stability and transparency prevents the major foreign investors from strategic investments to the Ukrainian energy and power sector. However, the low cost of labor, coal deposits and developed nuclear power industry make the Ukrainian energy market potentially interesting to a foreign investor.

Konnov & Sozanovsky's lawyers have experience and possess the required knowledge of peculiarities of the energy and power sector and advise clients on many aspects of oil, gas, energy business, including servicing share purchase transactions, privatization, obtaining authorizations for mining operations, interrelations with controlling and competition authorities, dispute resolution. We advise on the following energy and power industry related issues: legal framework of the energy business; purchase of assets, mergers & acquisitions, reorganization and restructuring of companies; authorizations for natural deposits production; agreements servicing mining operations and sales of treasures of the soil; privatization of companies; pre-acquisition due diligence for the foreign investor; tax optimization; tenders; environmental regulations; dispute resolution.

Renewal of the Russian power industry started as far back as in 2003 and continues to the present.

Reconstruction of the power industry has occurred primarily through the reorganization of open joint-stock companies, Russian joint-stock companies “Russian European Economic Community” – a monopolist in this branch whose 52% of shares belong to the state. The main purpose of the Russian power industry reconstruction is a rise of the efficiency of branch enterprises, arrangement of conditions for its development on the basis of provision of incentives for capital investment, and achieving a reliable and uninterrupted power supply for consumers. In the view of aforesaid, radical changes are in the works: the state system governing the branch is being changed, the competitive market of the power industry is being formed, and new companies are being established. In the course of reform the branch structure is changing. The division of the naturally monopolistic (transmission of the electric power, operating and dispatching management) and potentially competitive functions (production and sale of electric power, maintenance and service) takes place, and instead of former vertically-integrated companies performing all these functions, the formations are being established, specializing in separate kinds of activities.

The instability and insufficient transparency of the Russian power industry sector impedes foreign strategic capital investments. Nevertheless, the low cost of the work-force, coal stocks, and nuclear infrastructure transformed Russia into an interesting variant for further development.

Possessing the required knowledge of peculiarities of the power industry and natural resources sector, Konnov & Sozanovsky’s lawyers provide legal services on many aspects of oil, gas, energy industry, including support in the transactions, connected with assets, privatization, financing, acquisition of licenses for exploitation and mining of mineral resources, collaboration with the regulatory and antimonopoly bodies, settlement of disputes. Our experts provide miscellaneous legal services for clients in the power industry sector, including consulting on subjects of legal regulation of commercial activity, support in the transactions on assets’ acquisitions, mergers and takeovers, reorganization and restructuring of the companies, consulting in matters of license acquisitions for exploitation and extraction, contract conclusion upon concessions, preparation of all and any agreements upon exploitation, extraction and trade of mineral wealth, support in the privatization of the enterprises of the power sector, legal presales due diligence of the enterprises in favor of the potential overseas investor, design of schemes of the companies activities’ taxation optimization, advising on and support in matters of tender and contest participation, consulting on issues of liability in the realm of ecology law, representation of clients’ interests in court disputes.

Great Britain

Cyprus