Ashurst advises on landmark first UK Export Finance-guaranteed Ukraine reconstruction facility
21 June 2023
Global law firm Ashurst has advised Citibank, N.A. and UK Export Finance (UKEF) on the first UKEF-guaranteed Ukraine reconstruction facility, to finance the urgent rehabilitation of six bridges and supply routes in the Kyiv region damaged or destroyed by the Russian military - the first ever UKEF-guaranteed financing in Ukraine and one of the first commercial bank financings delivered to support the reconstruction of Ukraine.
Officially announced at the Ukraine Recovery Conference on 21 June 2023, and in an unprecedented transaction from any export credit agency, UKEF has agreed to issue a buyer credit loan guarantee that allows the Ukrainian government to access financing from Citi, unlocking crucial funds for Kyiv Oblast’s Road Service.
The reconstruction of the bridges and supply routes ranges from those hit by shrapnel, to those which have been completely destroyed, and will ensure that the people and Government of Ukraine can once more use critical transport links around the capital.
Ashurst's Projects & Energy Transition Group deployed a multi-office team led by Paris partner Tom Longmuir, assisted by senior associate William Keen, associate Samia Khennous and supported by trainee solicitors Rohan Last, Katherine Borg and Elizabeth Hoyle. The leading Ukrainian firm Sayenko Kharenko acted alongside Ashurst as Ukrainian legal advisers, led by partner Anton Korobeynikov and assisted by associate Oles Trachuk.
Nusrat Ghani, Minister of State at the Department for Business and Trade, said:
“It is vital that we help Ukraine repel Putin’s invasion and return as a more prosperous, more resilient economy. Export credit is one part of over £4.7bn in non-military assistance which the UK has provided to Ukraine, and the backing of UK Export Finance is another step towards recovery.”
Commenting Tom Longmuir said:
"We are delighted to have advised Citi and UKEF on this landmark reconstruction financing. The transaction is highly innovative and deploys a number of unique features to ensure that commercial bank funding continues to be committed to Ukraine, despite the impacts of the war. This strategically important project will restore vital trade links for facilitating Ukraine's national recovery. The transaction will also lead the way for future UKEF-guaranteed and other ECA-backed financings to Ukraine as part of the reconstruction effort."
This role follows Ashurst's role in advising UKEF on the first UKEF direct facilities to the Ukraine Ministry of Finance in January 2022, for the supply of covid-19 testing kits.
