Analytics Legal analytics

Infographic "Anti-crisis measures. Limits set on foreign exchange transactions"

Experts from VEGAS LEX have visualised foreign exchange restrictions that are regularly introduced since the end of February of this year as special economic measures. Bird’s-eye view at the entire system of restrictions will reduce the business’s regulatory risks. It is especially useful when the requirements for foreign exchange transactions are changing almost daily.

SPIC 1.0. Investors are given back the proven mechanism and the right to extend contracts due to the sanctions

On 14 March 2022, a law came into force reviving the SPIC 1.0 mechanism for new investment projects, and allowing extending the terms of contracts already concluded due to foreign sanctions. The amendments were developed by the Government as part of a package of anti-crisis measures.

As part of the development of this law, the Government has also clarified the rules for concluding SPIC 1.0. The updated rules came into effect on 1 April 2022.

Recognition And Enforcement Of Foreign Arbitral Awards In Russia – Remarkable Cases Of 2019-2020

Despite a large number of disputes involving Russian entities that are complicated by the presence of a foreign party, the practice of recognizing and enforcing international commercial arbitration decisions in Russia is not always consistent. This is especially true for cases where the other party (against whom a decision is rendered) alleges that the enforcement of the decision is in contradiction to public policy. This argument is the most common defence strategy, although the least predictable in terms of the court’s findings.

Readers are offered an overview of a number of interesting court cases for 2019–2020, which contain conclusions that are significant for practice formation.

Russia to initiate termination of double tax treaty with Cyprus

In early April, Russia sent a letter offering to amend the text of the agreement on avoidance of double taxation (DTT) by increasing tax rates in terms of taxable dividends and interest payments to Cyprus. However, after almost four months of negotiations, the parties failed to reach a consensus.

According to the information published by the Russian Ministry of Finance, with due regard to close economic and historical ties between the two states, the Russian party formulated options for a compromise and offered to swiftly hold (the ongoing week) face-to-face negotiations in Cyprus but received a refusal. Consequently, Russia’s Ministry of Finance announced that it would initiate denunciation of the DTT.

Antitrust Compliance Law Adopted

On March 1, 2020, the President of the Russian Federation signed a law amending the Law on the Protection of Competition and at the level of federal legislation defines the concept of antitrust compliance and the basic requirements for it.

Analysis of competitive situation on digital markets: legislative initiatives and Russian experience

In the “fifth antimonopoly package”, Federal Antimonopoly Service of Russia provides for the possibility to treat, in certain circumstances, the business entity, which owns infrastructure (platform) that is intended to organize and ensure cooperation of business entities and (or) consumers and which holds a commodities market share of less than 35 %, as occupying a dominant position. Specifically, it refers to the cases where network effects give such entity an opportunity to exercise a dominant influence on the general conditions of circulation of commodities and (or) remove other entities from the market and (or) impede access to the respective commodities market by other business entities.

Protection of business reputation on the Internet will become more efficient

According to the statistics of the Supreme Court of the Russian Federation, the number of arbitration cases involving claims for protection of business reputation is increasing year by year. Specifically, in 2017, the number of satisfied claims under such cases increased almost double as compared to 2016. Increasingly, the data posted on the Internet becomes the reason for lodging a claim for protection of business reputation. At the same time, judicial defence in such cases becomes more complicated because of the lack of the efficient mechanism of enforcement of court judgments concerning the removal of damaging information. The recent legislative changes regarding enforcement proceedings and information are focused on creation of such mechanism.

From equivalence to interchangeability and vice versa

Interchangeability of medicines has always been of concern to pharma market participants. However, year by year, this issue brings up more questions than answers. From January 2018 the information on interchangeability of medicines will be subject to inclusion into the state register of medicines.

Typical disputes under contracts that involve developing and implementing software 2016-2017

This overview has put together examples of court cases that illustrate the types of disputes that are often encountered arising from the performance of contracts to develop and implement software (PO). Every dispute focuses on one or two legal issues, and permits certain practical conclusions to be drawn that can be beneficial for specialists who work in this area.

Failure of the courts to use statutory instruments when resolving disputes – interpretations from the Russian Federation Constitutional Court

By virtue of Section 2, Article 13 in the Russian Federation Arbitration Procedural Code, an arbitration court that has, while reviewing a court case, established that there is a discrepancy between one statutory instrument and another statutory instrument that possesses greater legal validity, including by publishing it and exceeding the scope of authority, adopts the court order that corresponds to the statutory instrument that possesses greater legal validity. This discretionary authority on the part of the arbitration court is aimed toward protecting the interests of the parties involved in litigation, including in those instances where contesting the statutory instrument is impossible under the rules of the administrative proceedings because it was rescinded, either in accordance with judicial or administrative procedures, or because it has expired.