An arrangement for converting direct voltage into alternating voltage and conversely has a Voltage Source Converter with at least one phase leg connected to opposite poles (5, 6) of a direct voltage side of the converter and a series connection of switching cells arranged between said poles. Each half (8, 9) of this series connection is connected to a mid point forming a phase output by a phase reactor. The phase reactors of a said phase leg are built in a transformer (30) configured to connect said phase output to an alternating voltage phase line (28) by forming a primary winding each of the transformer arranged to interact with a secondary winding thereof connected to the alternating voltage phase line.