Press Release
| February 27, 2008
Dewey & LeBoeuf Advises Fortum on Russia's Largest- Ever Trade of Co2 Emission Reduction Units
(London - February 27, 2008) - Dewey & LeBoeuf has advised Fortum on its agreement with the Russian Territorial Generating Company No. 1 (TGC-1) and ECF Project Ltd to purchase approximately 5 million tonnes of emission reduction units (ERU) from TGC-1 for approximately €70 million.
The ERUs will come from joint implementation projects conducted at TGC-1's production facilities during the Kyoto Period (2008-2012) of the European Emissions Trading Scheme. The deal is the largest ever trade of CO2 emission reduction units in Russia.
The transaction was led by Moscow corporate partner Vasilisa Strizh and London environmental partner Nicholas Rock. Moscow counsel Ilia Miniaev and London environmental associate Tim Baines assisted.
John C. LaMaster, the firm's relationship partner for Fortum, commented: "This kind of deal will become increasingly important to clients in many sectors. It is a landmark transaction for the Russian market".
The ERUs purchased cover approximately half of Fortum's annual CO2 emissions and their value is approximately €70 million based on the current market price of Certified Emission Reductions originating from developing countries.
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