Presently the energy sector of Ukrainian industry is under reform targeted at further development of wholesale market of electric power and privatization of power stations and power providers. The Ukrainian energy market is scattered and characterized by the diversity of market players, where the 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, the coal deposits and the presence of nuclear power industry facilities create the prerequisites for the further development of this branch in Ukraine.
Konnov & Sozanovsky's lawyers have experience and possess the required knowledge of peculiarities of the energy and natural resources sectors and advise clients on many aspects of petroleum, natural gas and power industries.
Our specialists render many-sided legal services in the sphere of power engineering, including the consulting on legal framework of business activity; support of purchase of assets transactions, mergers & acquisitions, reorganization and restructuring of companies; consulting on authorizations for natural deposits production; contract conclusion upon concessions; preparation of all types of agreements servicing mining operations and sales of treasures of soil; support of privatizations of energy sector companies; pre-acquisition due diligence of the companies of this branch; development of tax optimization schemes; consulting and support in tenders; consulting on environmental regulations; representation in court.
Reconstruction of the power industry occurs primarily through the reorganization of Open Joint-Stock Company Russian Joint-Stock Company “Unified Energy System of Russia”– 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 provision of reliable and uninterrupted power supply for consumers. In the view of aforesaid, radical changes are taking place in the power industry of Russia: 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 specializing in separate kinds of activities, are being established.
Possessing the required knowledge of peculiarities of the power industry and natural resources sectors, Konnov & Sozanovsky’s lawyers provide legal services on many aspects of petroleum, natural gas, power 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.