Press centre News

November 29, 2011, law Firm VEGAS LEX* together with law firm VOLGA LEGAL (Samara) held a conference in Samara, in the hotel "Holiday Inn Samara": Foreign Law as a Way to Protect Assets for the Russian business."

Partner, Director of Regional Development at VEGAS LEX, and Andrei Sychev, Managing Partner at VOLGA LEGAL, were the moderators of the conference. In their opening speech they urged the participants to support a dialogue and active debate to avoid the format of long and tedious reports and to get much useful, practical information. The moderators identified the main topics that the speakers were to present in their speeches: shareholders relationship and asset transactions - the "Russian option", use of the English law in the structure of deals for "Russian assets", choice of jurisdiction to establish the corporate structure and to perform transactions, tax risks in sale of assets, financial issues in structuring deals.

Expert drew  attention of the audience to the tools which should be used in transactions based on foreign law, as well as to the benefits and pitfall of using English law that should be taken into consideration while structuring the transactions; subsequently, who benefits from and who should avoid such transactions.

Yuriy Bortnikov, the Head  of International Projects Group at VEGAS LEX, acknowledged a trend towards an increase in transactions based on foreign law, in particular the English law  because of its flexibility. He provided the examples of well-known large companies using it in M&A transactions, investment and shareholder agreements, and for establishing new companies. Yuriy also spoke about the specifics of foreign jurisdictions. He specified the ones that are the most interesting for Russian companies.

Alexei Anfimov,  Head of Samara branch of JSC "Gazprombank", shared VEGAS LEX partner's position on the matter of structuring the assets and transparency of transactions. Such an approach would initially prepare a business for sale. At the stage of attracting a financial investor it is crucial not to miss such an important element as due diligence, the absence of which may entail serious risks of loss, including the loss of the business itself.

Thomas Hornby, Legal Advisor to the International Projects Group at VEGAS LEX, described in details the following financial aspects of structuring transactions: due diligence, the structure of the contract, legal protection, guarantees, complexity, potential losses, closed deal, etc.

Ekaterina Dyachenko, Head of the Administrative Practice of VOLGA LEGAL, summarized the presentations by describing tax risks of assets sale using the example of a sale of an oil company.

Throughout the meeting, Andrey Sychev gave examples from his own and regional legal practice to illustrate all stated in the program topics. It allowed the audience to perceive everything that the speakers were talking about from the regional perspactive.

The speakers were especially pleased with the audience being so active and showing interest in the event by asking questions and communicating with other guests. The participants thanked the speakers for the informative presentations and expressed their intention to meet and discuss other relevant, important and useful topics and matters. The conference participants were not only the representatives of Samara companies, but also the representatives from Togliatti, Ulyanovsk and Kazan.

VEGAS LEX provides customers with the maximum comfort while doing business in the foreign jurisdictions or supporting projects structured under foreign law.

Photo: "Kommersant Volga. Samara"