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2
August
2017

Suspending the performance of reciprocal obligations

When signing a contract, both parties expect each other to fulfill the terms of the agreement that, as a rule, define how they gain mutual benefit (this refers to transactions whose subject matter involves mutual obligations and satisfaction for both parties). But, unfortunately, reciprocal performance on the part of both parties does not always take place. The law provides for mechanisms to protect the interests of the scrupulous party in the transaction, and to encourage each counterparty to fulfill its obligations. Let's analyze how they are implemented in practice

EZH-Yurist
21
July
2017

The financial resources to remedy the consequences of an industrial accident

During work with hazardous production facilities, including hydraulic engineering facilities, there is potential risk in the form of accidents and other emergencies. Currently, there is no unified approach – either in terms of legislation or judicial practice – to how the process of remedying the consequences of industrial accidents is financed, or to how the list of people accountable for remedying these consequences is determined.

Industrial and environmental safety, labor protection
13
July
2017

The complications involved with making a choice

Legislation provides for parties being able to choose which arbitration court of original jurisdiction will review a dispute between them – however, along with that the Russian Federation Arbitration Procedural Code explicitly bans exclusive jurisdiction. It would seem that choosing a court is exceptionally simple. If the parties have agreed to transfer their dispute into the jurisdiction of a particular court, and this agreement does not violate the principle of exclusive jurisdiction, then the plaintiff petitions the court that has been agreed upon. However, this obvious conclusion has not, in practice, been agreed to by the courts for a long time. Russian Federation Supreme Court Ruling No. 305-ES16-20255, dated May 25th, 2017, helped turn the tide.

EZH-Yurist
7
July
2017

On the tax-related problems faced by companies with foreign participation

The government’s strategy to "impose order" in the field of international tax planning occupies an increasingly important place, both in the field of rulemaking and in the field of law enforcement. If tax policy has been fundamentally focused on restricting the use of foreign tax benefit schemes, at least on paper, since 2010 – and a slew of targeted regulations, in particular on thin capitalization, has existed since 2002 – then real progress in this direction has started to become apparent only in the last few years. This, however, is in complete accordance with world practice and with the stages entailed in developing and applying a BEPS plan.

Yuriy Ivanov, Head of Tax practice
Joint Stock Company
6
July
2017

Overview of changes in the energy legislation sphere in June 2017

In June the Russian government adopted a number of important regulations affecting the energy industry. Our latest update looks at these changes

Yuriy Tatarinov, Head of Energy practice
BigpowerNews
21
June
2017

A new way to remedy errors, or a new mechanism to collect taxes?

On March 24th, 2017, the Russian Federation Constitutional Court adopted Resolution No. 9-P, which ratified the possibility of collecting tax debt as unjust enrichment.

EZH-Yurist
19
June
2017

The fight with cartels reaches a new level

Medicinal products and medical equipment, according to data from the Federal Antimonopoly Service, occupy one of the leading positions in the list of commodities markets that are most affected by cartel collusion. Andrey Tenishev, Director of the Anti-Cartel Department at the Federal Antimonopoly Service, points out that the level of cartelization in public procurement for medicinal products might be around 50%. Recently, antimonopoly authorities presented a multivariable system to identify cartels during electronic bids. By using this program, it is possible to remotely identify and prove cartel collusion during electronic bids in any region or across any industry. A certain amount of time needs to pass before the effectiveness of this solution can be evaluated. However, even now it is evident that fighting cartels requires new, improved approaches.

Pharmaceutical Bulletin
14
June
2017

The problem of debt accumulation for management companies – reasons and solutions

With the intensification of crisis-related manifestations in the economy, the problem of debts in the electricity market has been exacerbated.For example, according to the Russian Energy Ministry, arrears for electricity consumers on the retail market increased by 21% in 2016 (up to 143.8 billion rubles), for heat supply by about 15% (up to 138 billion rubles), and for gas by 23% (up to 161 billion rubles). According to the current data from the NP Market Council Association, debts for all categories of consumers (including the general public) are growing compared to 2016. The reasons for this growth in debt for many groups of consumers are trivial, and represent the results of crisis-related occurrences. However, reasons exist for the accumulation of debts that are caused by imperfect regulatory controls. In particular, the issue will be about the legal regulation of how the cost for utility services that have been delivered to management companies is calculated, as well as for services delivered by management companies to the general public.

Energy Market
8
June
2017

Creditor-debtor relationships

Recently, legal practice concerning the enforcement of conditions that stipulate obtaining a guarantee has generally proceeded along the path of satisfying plaintiffs' claims to oblige the transfer of these guarantees, and of paying penalties in the event the contractual terms are not fulfilled. However, lately in the Moscow municipal district the opposite practice has been taking shape. The Russian Federation Supreme Court included one of these kinds of cases in its Review of legal practice (No. 2, 2017). We believe that the fact the uniformity of past legal precedent is being violated caused the Supreme Court to focus special attention on this issue.

EZH-Yurist
6
June
2017

Overview of changes in the energy legislation sphere in May 2017

In May the Russian government adopted a number of important regulations affecting the energy industry. Our latest update looks at these changes

Yuriy Tatarinov, Head of Energy practice
BigpowerNews
21
July
2017

Compensation for failure to enforce a court order. Which questions the Supreme Court failed to answer

What factors do the courts take into consideration when determining the size of penalties? Is it possible to apply the amount of a court-sanctioned penalty to a refinancing rate? Will it be possible to reduce the size of a penalty because it is disproportionate to the losses incurred by the plaintiff.

Arbitration practice
20
July
2017

The Supreme Court took a good look at government contracts

On June 28h, 2017, the Russian Federation Supreme Court Presidium sanctioned the Review of judicial practice for the application of Russian Federation legislation in the area of procuring goods, work, and services related to satisfying government and municipal needs. The legal positions taken by the Russian Federation Supreme Court are outlined in the Review regarding a considerable range of issues involving the application of Federal Law 44-FZ, dated April 5th, 2013, called “On the contractual system in the area of procuring goods, work, and services related to satisfying government and municipal needs.” In the publication, we will look at the more interesting legal positions held by the Russian Federation Supreme Court concerning signing, introducing changes to, or terminating government contracts, as well as the process of delivering goods where there is no government contract.

EZH-Yurist
11
July
2017

Questions & Answers

Could you please tell me where it is possible to request a copy of non-residential building design specifications (for research institutes, etc.) if the owner has lost them. Can this be done online?

Zdanie.info
7
July
2017

On the reasons for licensing activity involving the supply of energy

The Russian Federation government introduced a bill to the State Duma that proposes introducing licensing requirements for those supplying energy.

Energy Market
4
July
2017

Such different kinds of interchangeability

Interchangeability regarding medicinal products contains many facets. Today, we will look at one concerning procurement not for inpatient treatment, but for providing people with preferential outpatient treatment (outside the hospital).

Сollective of authors, VEGAS LEX
Medicinskiy vestnik (Medical bulletin)
19
June
2017

Who will answer for negligence by the tax inspectorate?

Tax inspectors confirmed the right to property allowances, and returned personal income tax to taxpayers. However, later on it turned out that people received the allowance unlawfully. This did not occur by any fault of theirs, but because of mistakes made by tax revenue officer. Officials demanded that the taxes be returned, so people appealed to the Supreme Court. The court declared the personal income tax, which taxpayers received due to negligence on the part of revenue officers, unjust enrichment. In this case, revenue officers have the right to demand that the personal income tax be returned to the budget. The deadline is three years from the time that the decision to grant an allowance was made. The Constitutional Court ruled that collecting taxes that were returned due to an allowance being mistakenly granted is permissible on the basis of provisions contained in the Russian Federation Civil Code concerning unjust enrichment (Supreme Court Resolution No. 9-P dated March 27, 2017).

Tax disputes
14
June
2017

The Russian Federation Supreme Court on easements. In the interests of uniformity

On April 26th, 2017 the Russian Federation Supreme Court Presidium approved the Review of judicial practice in cases involving establishing an easement on a land plot. This document consists of 13 clauses, and contains both clarification concerning positions that have already been taken by the courts and answers to certain questions on establishing easements that previously lacked uniformity in the bounds of judicial practice. In particular, criteria for the jurisdiction of disputes concerning the establishment of easement have been specified, as well as changes in the conditions for easements and terminating them. As the supreme judicial authority explained, when deciding which court should review a dispute – a court of general sessions or an arbitration court - it is necessary to consider both the subject matter involving the parties in the dispute as a criterion to proceed from and the nature of their legal relationship as a whole. As a topic for this issue, read about the positions taken by the Russian Federation Supreme Court that are the most interesting in terms of regulatory enforcement.

EZH-Yurist
9
June
2017

The peculiarities of contesting regulated prices (tariffs) during judicial and extrajudicial proceedings

According to Federal Law No. 190-FZ, entitled "On Heat Supply" and dated July 27, 2010, regulating prices in the area of heat supply is aimed at providing access to thermal energy (power) and heat transfer fluids for consumers, as well as ensuring economic justification for the costs incurred by heat suppliers and district heating organizations for the production, transfer, and sale of heat energy (power capacity) and heat transfer fluids.

Yuriy Tatarinov, Head of Energy practice
Heat supply news
8
June
2017

Alexander Sitnikov forgives his employees everything except for being toxic

Creating a team that its colleagues around the world will recognize, working with only the best, and not being afraid to give them complete freedom are the secret ingredients in the "soup" served up by Alexander Sitnikov, the managing partner at Vegas Lex. But the road to his team is closed for toxic people.

Alexander Sitnikov, Managing partner
Сorporate lawyer
30
May
2017

Overview of legislative changes from March – May 2017

In the new review, we would like to draw your attention to some important legislative changes that occurred in the spring of this year in the field of construction, antimonopoly regulation, labor law, and tax law. The Russian Ministry of Construction issued decrees that ratified the methods to be used to determine cost estimates for construction materials. Substantial changes have been introduced into Article 14.32 in the Russian Federation Administrative Offenses Code that establish the liability for signing anti-competitive agreements and implementing impermissible concerted actions. On March 28th, 2017 the Russian Federation State Duma introduced a bill for a federal law that would significantly restrict employers from demanding work days with irregular work hours. Another bill is going through public debate that obliges legal entities to gain knowledge of any beneficial owners that might exist, to take steps to identify them, and also to present information about them to the Russian Federal Service for Financial Monitoring and the Federal Tax Service upon request. to help combat both the legalization (laundering) of funds that have been acquired by illegal means and the financing of terrorism.

Alexander Sitnikov, Managing partner
Business of Russia
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