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16
February
2015

The mere fact that the contractor has performed the work, does not lead to the emergence of a customer’s obligation to pay for their results (Supreme Court of RF reviewed the latest dispute involving a state contract)

In accordance with Paragraph 1 of Article 702 of the Civil Code of the Russian Federation (hereinafter – the Civil Code), under a contractor agreement, one party (the contractor) undertakes to perform, on the instructions of another party (the customer), some work and deliver the result to the customer, and the customer is obliged to accept the result of the work and pay for it. Similarly defined is the object of a building construction contract and the contract for the performance of contractual work for state or municipal needs. (This legal update is available only in Russian)
Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
6
February
2015

The loss of privileges by Oboronenergosbyt OJSC

Draft Resolution of the Government of the Russian Federation “On approval of the changes being made to certain acts of the Government of the Russian Federation on changing areas of activity of last resort suppliers” further regulates the procedure for replacing last resort suppliers (LRS) for consumers of the Defence Ministry of Russian Federation. To date, the Draft Resolution has passed the Regulatory Impact Assessment procedure, and is waiting to be signed by the Chairman of the Russian Government. (This legal update is available only in Russian)
Alexander Sitnikov, Managing partner
Evgeniy Rodin, Partner, Head of "Resources. Industry. Restructuring"
2
February
2015

Regulatory developments in pharmaceutical sector in Russia: February 2015

According to MoH, starting on 1 March 2015, it is prohibited to sell medicines included into the EDL for 2015, if the drug manufacturers fail to register the maximum sale prices for such medicines. Further to the Federal Law “On Drug Circulation”, this prohibition applies to drug manufacturers, wholesalers and pharmacies. It also means, that such essential drugs (with no price registered) will not be admitted to state tenders subject to the direct provisions of the Federal Law “On Contractual System for State Procurement”.
Alexander Sitnikov, Managing partner
20
January
2015

Bankruptcy under the new rules

Starting from 29 January 2015, the rules of the Federal Law “On insolvency (bankruptcy)” shall be applied to the bankruptcy procedures as amended by the Federal Law of 29 December 2014 No. 482-FZ.
3
December
2014

The international exchange of tax information in 2014

International cooperation on the exchange of tax information is moving into an active phase of collection and transmission of information. It is not surprising that the prevention of tax evasion is a priority for OECD countries. (This legal update is available only in Russian)
Yuriy Ivanov, Head of Tax practice
10
November
2014

Tax monitoring will reduce tax risks

On 04 November 2014, signed was Federal Law No. 348-FZ “On Amendments to the Tax Code of the Russian Federation”. The law provides for the possibility of applying tax monitoring, which is carried out at the location of the tax authority, in relation to taxpayer organizations (payers of fees and tax agents). (This legal update is available only in Russian)
Yuriy Ivanov, Head of Tax practice
27
October
2014

The new procedure for launching criminal cases involving tax crimes. Comprehensive analysis

On 22 October 2014, Federal Law No. 308 “On Amendments to the Criminal Procedure Code of the Russian Federation” was signed and entered into force, which amended the procedure for launching criminal cases involving tax crimes under Articles 198-199.2 of the Criminal Code of the Russian Federation. (This legal update is available only in Russian)
Yuriy Ivanov, Head of Tax practice
15
October
2014

The Constitutional Court of the Russian Federation on the procedure for compulsory purchase of a property located on the territory of integrated development

One of the directions for the development of land and urban planning legislation of the Russian Federation is to move from point construction to integrated development of territories. (This legal update is available only in Russian)
Alexander Sitnikov, Managing partner
7
October
2014

Corporate fraud: mechanisms for recovering assets taken out of the country

Russia has stepped up development of mechanisms aiming at the return from abroad of capital lost as a result of economic crimes. The need for doing this was announced by the chairman of the Investigative Committee of Russia at the end of September 2014. A month earlier, the Russian General Prosecutor proposed to foreign colleagues the conclusion of agreements on the return of confiscated property. On this wave, on 23 September 2014, the State Duma passed during first reading the anti-corruption legislation proposed by the President of Russia. The amendments give the general prosecutor’s office the right to claim, in arbitration courts, the return of illegally acquired state and municipal property. However, the protection of private assets, taken abroad as a result of criminal acts, for now remains without proper regulation. (This legal update is available only in Russian)
Ilya Shengeliya, Compliance Counsel
1
October
2014

The new guidelines for pricing policies of monopolists

At the end of September 2014, the official website of FAS Russia published principles of economic analysis of pricing practices concerning their compliance with the Law on Protection of Competition. (This legal update is available only in Russian)
Alexander Sitnikov, Managing partner
12
February
2015

Landmark events 2014 in the field of IT regulation in Russia

Landmark events 2014 in the field of IT regulation in Russia
Alexandra Vasyukhnova, Partner, Head of Technology and Investment group
3
February
2015

The Supreme Court allowed restrictions to be placed on electricity supply to the military

On the electric energy supply market, over a long period of time, the Ministry of Defence accumulated significant consumer indebtedness. At the same time, based on the fact that these customers were served by their “own” last resort supplier (LSR) – Oboronenergosbyt OJSC, the main LSR in the region had virtually no opportunity to influence the debtors. (This legal update is available only in Russian)
Alexander Sitnikov, Managing partner
Evgeniy Rodin, Partner, Head of "Resources. Industry. Restructuring"
26
January
2015

The Supreme Court specified the explanation provided by the presidium of the high arbitration court with respect to the payment for the works completed with no public contract

The amount of the disputes resolved in court and related to the scope, quality, cost and terms of contracting works is permanently large. Most of them arise out of the relations associated with the works performed for public or municipal needs. In the current economic context, the amount of such disputes will only be increasing. It is not uncommon that the mater in dispute is related to the payment for works performed by the contractor for public or municipal needs with no contract made in accordance with the established practice.
Igor Chumachenko, Partner, Head of Real Estate, Land & Construction practice
12
January
2015

Law on public procurement is adapted to changing market conditions

The terms and conditions of contracts, the performance of which should be completed in 2015, may be revised by mutual agreement (Federal Law dated 31.12.2014 No. 498-FZ). (This legal update is available only in Russian)
Alexander Sitnikov, Managing partner
20
November
2014

Land use and development in Moscow, will be approved by the Government of Moscow

In accordance with the Town Planning Code of the Russian Federation (hereinafter – the TPC RF) one of the main instruments designed to ensure sustainable development of territories is zoning. As a result of zoning, a territory of the municipality is allocated territorial zones for which town planning regulations are established. (This legal update is available only in Russian)
Сollective of authors, VEGAS LEX
5
November
2014

Making VAT deductions when purchasing by electricity grid companies to compensate for losses

On 31 October 2014, the official website of the Russian Federal Tax Service published a letter from the Ministry of Finance of Russia dated 29.09.2014 No. 03-07-15/48602 on the legality of the application of deductions of value added tax in connection with the acquisition (compensation) by network organizations for electric energy losses occurring in grid facilities during transportation. (This legal update is available only in Russian)
Yuriy Ivanov, Head of Tax practice
20
October
2014

The practice of state procurement of drugs and medical devices. New rules of the game

Adoption of the Federal Law dated 05 April 2013 No. 44-FZ “On the contract system in the procurement of goods, works, and services for state and municipal needs” (hereinafter – the Law No. 44-FZ) substantially changed the procedure for holding public auctions. For more details, read this research report. (This legal update is available only in Russian)
9
October
2014

New in property taxes

On 04 October 2014, signed was the Federal Law No. 284-FZ “On Amendments to Articles 12 and 85 in the first part and the second part of the Tax Code of the Russian Federation and the annulment of the law of the Russian Federation “On taxes on the property of individuals” (hereinafter – the Law) which made a number of amendments to Russian tax legislation. (This legal update is available only in Russian)
Yuriy Ivanov, Head of Tax practice
3
October
2014

IP Immunities For Drug Manufacturers On The Russian Market

On 23 September 2014 the Court of Appeal ruled that IP immunities may not be regarded as a valid excuse for a patent holder/trademark holder in case of abuse of dominance on the drug circulation market, inter alia in those cases where a drug manufacturer refuses to enter into a supply agreement with its distributor.
Alexandra Vasyukhnova, Partner, Head of Technology and Investment group
1
October
2014

Introduction of the new market model of thermal energy

The accumulated problems in the heating supply, primarily due to the high wear and tear of fixed assets, now require major investments into equipment modernization. However, the industry has developed a system of relations that makes the heating sector unattractive to investors. This is not the first year that they have been discussing the need for the introduction of a new market model, which is discussed in more detail in an analytical review. (This legal update is available only in Russian)
Alexander Sitnikov, Managing partner
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