Best Project Finance Lawyers in Kharkiv

1. About Project Finance Law in Kharkiv, Ukraine

Kharkiv, as a major economic center in northeastern Ukraine, increasingly uses project finance to fund large scale infrastructure, energy and industrial initiatives. In practice, project financing in Kharkiv often involves a special purpose vehicle (SPV), non-recourse debt from banks or funds, and off take agreements with municipalities or large buyers. The legal framework is national, with local compliance requiring land use, environmental permits, and grid connections in addition to contract law and corporate governance.

In Kharkiv projects, lenders require robust due diligence on counter parties, off take risk, and the enforceability of security packages such as pledges and guarantees. The typical structure includes EPC and O&M contracts, supply agreements, and long term off take arrangements to support debt service. Jurisdiction specific issues include land rights, local licensing, and compliance with Ukrainian procurement rules for public or semi public projects.

The legal environment for project finance in Kharkiv relies on Ukrainian national law and regional administration requirements. Investors and sponsors must navigate land use rights, environmental assessment procedures, and connection to the electric or gas grid. Recent trends include greater emphasis on transparent public procurement in Ukraine and enhanced lender due diligence in cross border deals.

Official sources emphasize that Ukrainian project finance structures typically rely on SPVs with robust security packages and clear off take agreements. See official Ukrainian law portals for texts and amendments. zakon.rada.gov.ua

2. Why You May Need a Lawyer

• Launching a solar or wind project in Kharkiv requires structuring an SPV, negotiating land use rights, and ensuring grid connection. A lawyer helps align the SPV, permits, and lender requirements from day one.

• Negotiating a public or municipal PPP arrangement in Kharkiv requires detailed concession terms, risk allocation and compliance with Prozorro procurement rules. Legal counsel ensures alignment with local procurement procedures and regulatory standards.

• When cross border lenders participate, you need a lawyer to coordinate Ukrainian contract law with foreign finance documents and to address currency risk, repatriation and tax considerations in the Kyiv and Kharkiv regions.

• In land intensive projects near Kharkiv, counsel is essential to verify land status, cadastre, lease rights and potential encumbrances before debt can be secured by real property or revenues.

• For engineering, procurement and construction contracts, a lawyer drafts and negotiates terms to ensure performance guarantees, change orders, and dispute resolution are enforceable under Ukrainian law.

• In cases of regulatory changes or sanctions affecting participants, counsel provides risk assessment, compliance audits and structure adjustments to protect the financing plan.

3. Local Laws Overview

• Civil Code of Ukraine governs obligations, contracts and security instruments essential to project finance, including pledge rights and collateral enforcement. It provides the foundational framework for lender protections and borrower duties. See official texts for current provisions and amendments. zakon.rada.gov.ua

• Law on Public-Private Partnership establishes the framework for private sector involvement in public infrastructure and services, including project selection, risk sharing, and regulatory oversight. Refer to the official law portal for the latest amendments and guidance. zakon.rada.gov.ua

• Law on Concessions provides mechanisms for long term concessions and related risk allocation between the state or municipalities and private sponsors. Official texts and amendments are available on the government legal portal. zakon.rada.gov.ua

• Tax Code of Ukraine regulates corporate income tax, value added tax and other tax aspects relevant to project finance structures, including tax treatment of SPVs and cross border financing. Guidance and updates are available from the State Tax Service. tax.gov.ua

4. Frequently Asked Questions

What is project finance and how does it differ from ordinary lending in Ukraine?

Project finance focuses on the project’s cash flows rather than the balance sheet of sponsors. In Ukraine, lenders rely on an SPV, off take agreements and predictable revenue streams to support debt service. Non recourse or limited recourse debt is common in large scale projects.

How do I start a project finance deal in Kharkiv, step by step?

Begin with a feasibility study and identify potential SPV structure. Then assemble a term sheet, select local and international advisers, and commence due diligence on contracts, land rights and permits. Close with financing documents and security enforcement plans.

What is an SPV and why is it used for Kharkiv projects?

An SPV is a separate legal entity created to own project assets and liabilities. It isolates project risk, aligns lenders with the project, and simplifies debt service and security arrangements. In Kharkiv, SPVs help with local permit and land processes.

How long does due diligence typically take for a Kharkiv infrastructure project?

Legal due diligence often takes 4-8 weeks, depending on land rights and permitting complexity. Technical and financial due diligence run in parallel for efficient closing timelines.

Do I need a Kharkiv based lawyer to handle local permits and land rights?

Yes. Local counsel understands regional zoning, cadastre, and municipal licensing. They coordinate with state bodies to avoid delays in land allocation and environmental approvals.

What are typical costs of hiring a project finance lawyer in Kharkiv?

Legal fees vary by project size and complexity. For mid scale projects, expect phased engagements around 5 000 to 25 000 USD upfront with success fees linked to closing milestones.

What permits are required for a Kharkiv infrastructure project and how long?

Permits cover environmental impact assessment, construction, and operating licenses. Timelines depend on the project type and locality, often extending several months for complex urban sites.

How is currency risk managed in Ukrainian project finance?

Lenders and sponsors often use dedicated hedging or currency baskets. Ukrainian regulation may require local currency revenues or specific FX compliance measures for cross border financing.

What is the difference between a PPP and a conventional loan for infrastructure in Kharkiv?

Ppp arrangements involve collaboration with the public sector, possible subsidies or guarantees and risk sharing. A conventional loan is debt secured by project assets with less public sector involvement.

Can foreign investors participate in Kharkiv project finance deals?

Foreign participation is common, but requires compliance with Ukrainian currency, tax and sanctions laws. Local counsel helps navigate compliance and cross border documentation.

Should I require collateral such as a pledge of assets in Ukraine?

Collateral enhances lender comfort and can improve financing terms. Ukrainian law recognizes pledges on movable and real property, with registration and enforcement considerations.

Do sanctions impact cross border project finance in Kharkiv?

Yes, sanctions can affect counterparties and payment flows. You should conduct ongoing sanctions screening and adapt contracts to maintain compliance.

5. Additional Resources

• Zakon Rada official portal for Ukrainian laws and amendments. Useful for texts of civil, commercial, PPP and concession statutes. https://zakon.rada.gov.ua/

• National Bank of Ukraine guidance on currency regulation, cross border payments, and financial stability relevant to project finance. https://www.bank.gov.ua/en/

• State Tax Service of Ukraine information on tax treatment for SPVs, VAT, corporate income tax and other taxes affecting project finance. https://tax.gov.ua/en/

6. Next Steps

1. Define your project scope, expected capacity, geography around Kharkiv and projected timelines. Create a high level budget and a preliminary financing plan within 1-2 weeks.

2. Identify 2-3 Kharkiv based law firms or solo practitioners with project finance experience. Schedule introductory consultations within 2-3 weeks.

3. Prepare a non disclosure agreement and gather foundational documents: feasibility studies, land rights, permits, and draft contracts. Complete this within 2-4 weeks.

4. Engage lenders early and prepare a term sheet covering capital structure, security interests, and off take terms. Target 3-6 weeks for initial lender feedback.

5. Conduct due diligence in parallel: legal, environmental, financial and technical. Allocate 4-8 weeks depending on project complexity.

6. Draft and negotiate key agreements: SPV share structure, EPC and O&M contracts, security documents, and off take contracts. Finalize within 6-12 weeks after due diligence wraps up.

7. Close the financing and implement governance procedures for ongoing compliance and reporting. Plan for post closing support over the project life.