Structured Asset Finance in Ukraine
Structured finance techniques used in international transactions — including SPVs, asset-backed structures, and complex security packages — are not always directly transferable into the Ukrainian legal system. The key challenge is not how to design a financing structure, but how to adapt and implement it in a jurisdiction where many of these mechanisms are not expressly regulated or are applied differently in practice.
As Ukrainian Local Counsel, we work alongside international law firms, lenders, and investors to ensure that global financing structures are properly translated into Ukrainian law and remain enforceable in practice. These structures are frequently used in aviation projects, including aircraft leasing (→ Aircraft Leasing & Acquisition in Ukraine) and airport development (→ Aviation Regulatory & Compliance in Ukraine).
Role of Local Counsel in structured finance transactions
In structured finance transactions involving Ukraine, the primary structuring is typically led by international counsel. Our role is to ensure that the proposed structure can be implemented, recognized, and enforced under Ukrainian law. This includes:
- identifying which elements of the international structure have no direct equivalents under Ukrainian law
- developing legally workable alternatives or adaptations
- aligning security, control, and cash flow mechanisms with local legal constraints
- ensuring that documentation reflects Ukrainian enforceability requirements
- bridging gaps between international structuring concepts and local legal reality
We do not replicate global structuring work — we ensure that it works in Ukraine. Structured asset finance is a key tool for investments in Ukraine, particularly in infrastructure, aviation, and capital-intensive sectors. Many international structures require careful adaptation before they can be implemented locally.
Scope of services
We support structured finance transactions with a focus on asset-backed and project-based financing.
Adaptation of international financing structures
- Translating SPV-based structures into workable Ukrainian frameworks
- Adapting cash flow and repayment models
- Ensuring compatibility of contractual structures with local law
- Identifying limitations in applying international techniques
- Proposing legally enforceable alternatives
Security package & risk allocation
- How security concepts are recognized in Ukraine
- Limitations of local security instruments
- Security over assets and contractual rights
- Assignment of receivables
- Step-in rights and control mechanisms
- Allocation of risks between sponsors, lenders, and operators
Cross-border financing & legal integration
- Integration of Ukrainian elements into international financing structures
- Coordination with foreign counsel
- Analysis of enforceability under Ukrainian law
- Adaptation of documentation for local requirements
Aviation & infrastructure financing models
- Aircraft-related financing models
- Airport and aviation infrastructure projects
- Concession and PPP-based structures
- Revenue-based financing models
Implementation & enforceability
- Analysis of enforcement mechanisms under Ukrainian law
- Interaction with regulatory constraints
- Structuring for dispute scenarios
- Alignment with practical enforcement realities
Work algorithm
We support the implementation of financing structures to ensure that they are workable and enforceable in Ukraine.
Step 1 — Project & asset analysis. We assess the asset, revenue model, and investment structure.
Step 2 — Review of financing structure. We define the appropriate financing structure (SPV, debt, hybrid) and verify compatibility with Ukrainian law.
Step 3 — Assessment of risk allocation. We structure relationships between investors, lenders, and operators.
Step 4 — Review of security package. We design security packages and control mechanisms.
Step 5 — Legal integration. We align the structure with Ukrainian law and regulatory requirements.
Step 6 — Documentation & coordination. We support drafting and coordination with international teams.
Step 7 — Implementation & monitoring. We assist with execution and address issues throughout the project lifecycle.
Who we work with
We act for participants in structured finance and investment projects.
Our clients include:
- Investors and funds
- Banks and financial institutions
- Project sponsors
- International law firms
- Infrastructure and aviation stakeholders
Typical situations we handle:
- Financing infrastructure projects in Ukraine — structuring and local law adaptation
- Structuring aviation-related investments — aircraft, airports, operators
- Cross-border asset financing — integration of Ukrainian legal element
- Risk restructuring in existing projects — adapting structures to changed circumstances
Key experts
FAQ: Structured Asset Finance in Ukraine
What is the main risk in structured finance projects in Ukraine?
The main risk is not the lack of access to funding, but whether the financing structure will be enforceable and will function as intended under Ukrainian law.
Can foreign lenders finance projects in Ukraine?
Yes, but structures must be adapted to Ukrainian legal and regulatory requirements. Many mechanisms used in international markets lack direct equivalents in Ukraine.
What security mechanisms are typically used?
Security may include asset-based security, assignment of receivables, and contractual control mechanisms. Their effectiveness depends on correct structuring from the outset.
Are SPV structures commonly used?
Yes, particularly in cross-border and infrastructure-related projects. However, they require careful adaptation to ensure compatibility with Ukrainian law.
How are risks allocated in structured finance transactions?
Through contractual arrangements between sponsors, lenders, and operators — including security and control rights. We ensure that these mechanisms are enforceable in the Ukrainian legal system.
What makes a financing structure workable in Ukraine?
Its compatibility with local law, regulatory practice, and enforcement mechanisms — combined with proper documentation and early local counsel involvement.
Do international structured finance techniques work in Ukraine without modification?
In most cases, no. Many techniques used in international markets lack direct legal equivalents in Ukraine and require adaptation to ensure enforceability and practical implementation.
Related practices
Ready to structure your project?
This work forms part of our Aviation & Asset Finance practice. We will ensure that your financing structure is properly adapted and enforceable in Ukraine.
