Insights | Denuo

Overview of the new law on common property of owners of immovable property

On 24 July 2023, Federal Law No. 351-FZ was adopted. The Law supplements the Russian Civil Code with provisions on the common property of the owners of immovable property. Our colleagues have analized the law in the context of the development of legislation on this matter.

Law signed on blocking assets of foreign persons under Russian sanctions

On 4 August 2023, the President of the Russian Federation signed Federal Law No. 422-FZ “On Amending Certain Legislative Acts of the Russian Federation” that suggests blocking (freezing) the assets of foreign persons against whom Russian special economic measures (sanctions) have been introduced. It also introduces the notion of a “blocked person” and expands the list of restrictions applicable to foreign states, organisations and nationals.

Russian Ministry of Finance publishes conditions for release from obligation to issue replacement bonds

On 27 July 2023, Russia’s Ministry of Finance published an extract from the decision of the Sub-Commission of the Government Commission on Monitoring Foreign Investment in the Russian Federation No. 176/3 containing two criteria which may permit Russian legal entities with obligations under foreign bonds issued by foreign entities to avoid issuing such replacement Eurobonds.

Russian Supreme Court adopts resolution on application of rules on pledging items

The Plenum of Russia’s Supreme Court adopted Resolution No. 23 of 27 June 2023 “On the Application by Courts of Rules on the Pledge of Assets”, which is aimed at ensuring that courts consider cases relating to the application of certain provisions of the legislation on pledging items in a consistent manner.

Risks for HKIAC arbitration clauses further to the case of RusChemAlliance LLC vs Linde GmbH

On 8 June 2023, the Arbitrazh Court of St Petersburg and the Leningrad Region issued a ruling in case No. A56-129797/2022 between RusChemAlliance LLC and Linde GmbH. The Court found that it had jurisdiction, as it did not consider the Hong Kong International Arbitration Centre as sanctions-neutral. Read in more detail in our team's legal update.

Draft law adopted enabling the suspension of certain corporate rights of foreign holding companies in Russian entities

After 24 February 2022, many Russian companies whose ownership structure included companies incorporated in so-called “unfriendly jurisdictions” encountered certain difficulties related to corporate decision-taking by such foreign shareholders. Our team analyses the text of the Draft Law which may help resolve a number of the related issues.

Russian Ministry of Finance significantly expands list of offshore and non-cooperative jurisdictions for tax purposes

The Russian Ministry of Finance has revised the list of states and territories that (i) provide preferential tax treatment and/or (ii) do not disclose or provide information on financial transactions. The updated List was introduced by Order No. 86n of the Ministry of Finance dated 5 June 2023 and entered into force on 1 July this year.

Russian government introduces changes to personal trust taxation

The Government has introduced another round of sweeping changes to taxation laws (Draft Law No. 369931-8). For the time being, this draft law has been prepared for its second reading and will be further refined. However, the key positive developments connected with personal trust taxation can already be highlighted.

Updated criteria for the approval of transactions under countersanction decrees of the Russian president

The website of the Ministry of Finance of the Russian Federation published an extract from Decision No. 171/5 of the Sub-Commission of the Government Commission dated 7 July 2023, which clarifies the conditions for the performance of transactions in accordance with countersanction Decrees of the President of the Russian Federation.

Mortgage related matters in the Resolution of the Plenum of the Supreme Court of the Russian Federation on pledges

On 27 June 2023, the Plenum of the Supreme Court of the Russian Federation issued Resolution No. 23 “On the Application by Courts of Rules on the Pledge of Assets.”