Focus Topics
Restructuring Ukraine
Supporting growth and investment
in a developing landscape
Ukraine remains at the epicentre of global attention as the war continues to impact the nation's infrastructure, economy, environment and the lives of its people. The challenges are significant, but so too are the resilience of the people and of the local and international businesses operating in Ukraine, as well as the opportunities for the country's reconstruction, modernisation and future growth.
Wolf Theiss, with its on the ground team in Kyiv and deep expertise in Central and Eastern Europe, is well-positioned to assist clients in navigating the complexities of Ukraine's evolving business environment. Our long-standing presence in the region, including our dedicated office in Ukraine, allows us to provide informed, practical and effective guidance. Having successfully supported emerging countries across Central and Eastern Europe through their transitions following the Cold War, we bring valuable experience to clients seeking to invest in Ukraine or restructure their existing operations.
As Ukraine embarks on a new chapter of development and further European integration, with the aim of ultimately joining the European Union, Wolf Theiss is prepared to help clients actively contribute to and benefit from the country's rebuilding efforts.
Current corporate landscape
Ukraine's corporate landscape is undergoing significant transformation amid ongoing war and the early stages of reconstruction. This dynamic environment presents both challenges and opportunities for businesses. Navigating the complexities of this market requires expert legal guidance and a deep understanding of the local regulatory framework.
Investment
outlook
Ukraine stands at a pivotal moment, presenting unique investment opportunities amidst the ongoing conflict and in the forthcoming reconstruction phase. As the nation embarks on rebuilding its infrastructure, economy and communities, there are significant prospects for investors who are willing to contribute to and benefit from Ukraine's resurgence.
Path to
reconstruction
The outlook in terms of Ukraine's reconstruction is both hopeful and complex. Massive efforts are required to rebuild the infrastructure, including housing, roads, schools and hospitals. Beyond physical reconstruction, there is also a critical need to restore economic stability, strengthen governance and ensure the well-being of all of Ukraine's citizens.
Current corporate landscape
Full-scale war in Ukraine effectively brought the domestic M&A market to a halt, resulting in the cancellation of several important deals beginning in late 2021. However, in 2023, Ukraine's M&A market exhibited a significant resurgence, mainly within the IT industry and agricultural sectors. The ongoing regulatory reforms aimed at enhancing business transparency and efficiency continue to transform the corporate landscape of Ukraine. Wolf Theiss, with its extensive regional expertise and multidisciplinary team, is uniquely positioned to support clients navigating this evolving market. Our services in corporate M&A are particularly valuable, offering comprehensive legal guidance on complex transactions, due diligence and compliance with local and international regulations. By leveraging our deep understanding of the Ukrainian business environment, Wolf Theiss can help clients identify strategic opportunities, mitigate risks and achieve successful deal outcomes.
Wolf Theiss Guide to Diversification of Ukrainian Businesses
The war in Ukraine, in addition to untold humanitarian costs, has caused immense damage to Ukrainian businesses and entrepreneurs. Both Ukrainian domestic and international businesses have been affected. These businesses have been considering various measures aimed at (i) securing the continuation of their operations, (ii) continuing transactions with their counterparties in Ukraine and abroad, (iii) supporting their employees and (iv) ensuring that business can generally move forward as much as is possible.
Ukraine: Currency control relaxation
To address the challenges stemming from the full-scale war in Ukraine, the National Bank of Ukraine (the “NBU”) introduced various measures and currency control restrictions in February 2022 to prevent capital outflow from the country.
Further insights
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This investment by KKR into HFE, which will also include Ukrainian assets and operations, is evidence of the fact that Ukraine can benefit from globalisation. Not only is the transaction good news for Ukraine and the country’s energy sector, coming in the middle of the challenges of war, but it also emphasises the trust of global institutional investors, such as KKR, in the future of Ukraine. We were delighted to assist with making the Ukrainian part of the transaction happen.
-Taras Dumych, Partner, Ukraine
Investment outlook
Ukraine's investment outlook is increasingly promising, driven by a robust reform agenda, burgeoning technology sector and strategic geographic location as a gateway between Europe and Asia. Despite geopolitical challenges, the country offers attractive opportunities in sectors such as agriculture, IT, renewable energy and manufacturing. Wolf Theiss stands out as a key partner for investors looking to capitalise on these opportunities. With our ample expertise in the local market and a strong track record in guiding international investments, we provide invaluable support in identifying viable investment prospects, conducting thorough due diligence, navigating regulatory landscapes and structuring transactions to maximise returns. By offering tailored legal and strategic advice, Wolf Theiss ensures that clients can confidently invest in Ukraine’s burgeoning economy.
Driving Ukraine’s recovery: New investment opportunities with support of EBRD
Ukraine’s financial sector has received a significant boost with the European Bank for Reconstruction and Development (EBRD) announcing €690 million supporting new lending. This development presents considerable opportunities for investors and businesses eager to engage in the country’s rebuilding efforts.
Antitrust Reform in Ukraine: The stage is set
In September 2023, the President of Ukraine signed the Law “On Amendments to Certain Legislative Acts of Ukraine on Improving Legislation on Protection of Economic Competition and Activities of the Antimonopoly Committee of Ukraine” (the “Law”). The Law launches the reform of Ukrainian antitrust legislation which had been blocked by the Ukrainian Parliament for a long time. The main purpose of this reform is to bring Ukrainian competition regulations in line with EU legislation, which has become even more important considering the recently approved decision by the EU Commission to begin negotiations with Ukraine on its joining the EU.
Wolf Theiss assists KKR with Ukrainian part of its USD 450 million multinational investment in Hero Future Energies
On 10 March 2023, KKR and Hero Future Energies (“HFE”), the renewable energy arm of the Hero Group, closed a transaction under which KKR invested USD 450 million in HFE to enable the company to expand its renewable energy capacity and capabilities across technologies such as solar, wind, battery storage and green hydrogen. The investment also aims to support HFE with its expansion into new markets over time.
Related matters
Our experts
Investment in Ukraine's post-war future offers tremendous opportunities, particularly in key sectors such as infrastructure, energy, manufacturing and agriculture. Wolf Theiss' extensive experience in real estate and construction is essential in managing the complexities of these investments and ensuring safe and compliant project delivery. The importance of legal expertise in overcoming the challenges of raising capital and fostering a stable investment environment cannot be overstated as Ukraine rebuilds its war-torn economy.
-Olga Ivanova, Associate, Ukraine
Path to reconstruction
Ukraine's path to reconstruction is a multifaceted endeavour focused on rebuilding critical infrastructure, restructuring legal frameworks and revitalising the economy. This extensive reconstruction effort aims to not only repair physical damages but also to modernise and enhance the country’s overall resilience and growth prospects. Wolf Theiss is well-equipped to support clients in this ambitious process, offering a comprehensive range of legal and strategic services. Our expertise in infrastructure projects ensures efficient handling of complex construction contracts, public-private partnerships and compliance with regulatory requirements. Additionally, our proficiency in legal framework restructuring aids in navigating new legislation, fostering a transparent and stable business environment. By providing in-depth economic insights and tailored legal solutions, Wolf Theiss helps clients contribute to and benefit from Ukraine's transformative rebuilding journey.
Register for war damage claims opened
The “Register of Damage Caused by the Aggression of the Russian Federation against Ukraine” (“Register of Damage”) has opened for the first category of war damage claims; losses or injuries to residential property. In the near future, the Register of Damage plans to expand registration to include additional categories of damages, with a focus on the destruction of Ukraine’s critical infrastructure, individual claims as well as business and other economic losses.
