Asters Advises China Development Bank on the Long-Term Strategic Partnership with Ukrtelecom

Asters acts as a legal counsel to China Development Bank (CDB) in connection with a number of agreements on the long-term strategic partnership with Ukrtelecom (a leading Ukrainian national telecommunications operator) and Huawei Technologies (one of the largest Chinese networking and telecommunications equipment and services companies).

Under these agreements, Ukrtelecom will receive the financial support from CDB and the technological support from Huawei to modernize its telecommunications network in Ukraine. At the first stage of the long-term partnership Ukrtelecom expects to receive credit from CDB amounting to USD 50 million, with repayment of loans to be completed by the end 2022.

"CDB's financing will support one of the leading telecommunications operators in Ukraine, assisting a viable economic activity and securing jobs in our country. We are happy to be a part of the project aimed at the further strengthening of the economic development of Ukraine", – Iryna Pokanay, partner at Asters law firm, comments.

“With this agreement Ukrtelecom has opened the gates for huge investments into the fixed telecom infrastructure of Ukraine”, - Yuriy Kurmaz, CEO of Ukrtelecom, says. - “Using these resources efficiently, Ukrtelecom will become one of the most modern telecom companies providing its customers with classic and innovative services”.

"Huawei is willing to share its international expertise and to supply the modern equipment to Ukrtelecom. Our equipment has proved its efficiency in a number of pilot projects during the test period in Ukrtelecom», - Miao Xiaoyang, Director of Huawei Ukraine, highlights.

Asters' banking and finance team advising on the project consisted of partner Iryna Pokanay, counsel Gabriel Aslanian and associate Inna Bondarenko.

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China Development Bank is a state-owned financial institution with a focus on the development of international business, and remains in the top position among Chinese banks with respect to international investment and financing.

Ukrtelecom JSC is the largest fixed line operator in Ukraine, the leader among Internet providers. Ukrtelecom is the sole founder and member of TriMob LLC, 3G/UMTS mobile operator. Today Ukrtelecom provides fixed telephony service to almost 7.2 mln. subscribers, and broadband Internet to over 1.6 mln. customers.

Huawei is a global leader of ICT solutions. Huawei's telecom network equipment, IT products and solutions, and smart devices are used in 170 countries. Huawei is ranked on the Global Fortune 500. In 2014, the company’s revenue reached approximately USD 46.5 billion.

Asters is a full-service independent national law firm that has maintained a strong presence in Ukraine since 1995. Asters is a two-time winner of the Law Firm of the Year: Ukraine and the CIS award (The Lawyer European Awards 2014 and 2015), Law Firm of the Year (Ukraine) award (Who's Who Legal Awards 2014), Law Firm of the Year award (Ukrainian Legal Awards 2014) and is also named No.1 law firm in Ukraine according to the 2011, 2012, 2013, 2014 and 2015 Top 50 Law Firms Annual National Ranking.