News

New compensation procedure for damage done to Russia and the Russian Central Bank by US actions

On 23 May 2024, President Putin signed Decree No. 442 “On the Special Procedure to Compensate for Damage Caused to the Russian Federation and the Central Bank of the Russian Federation as a Result of Unfriendly Actions by the United States of America.”

Tax exemption extended for receipt of assets from CFCs for 2024

The State Duma of the Russian Federation passed a law extending to the end of 2024 the tax reliefs providing for (1) an exemption of individuals who are tax residents of the Russian Federation from personal income tax when receiving income (property rights and property, except cash) from Controlled Foreign Companies (“CFCs”); and (2) a tax deduction for the subsequent sale of property (or property rights) received from a CFC. Read further in our legal update.

New procedure for the acquisition of exclusive rights owned by certain rightholders

Presidential Decree No. 430 of 20 May 2024 on the temporary procedure for the acquisition of exclusive rights owned by certain rightholders and the performance of monetary obligations owed to certain foreign creditors and persons controlled by them has been published.

EU directive on criminal liability for EU sanctions violations enters into force

Directive (EU) 2024/1226 of the European Parliament and of the Council of 24 April 2024 “On the Definition of Criminal Offences and Penalties for the Violation of Union Restrictive Measures” entered into force on 19 May 2024. The Directive is designed to ensure consistent and effective compliance with EU sanctions and makes important requirements of EU member states in terms of criminalising violations and setting minimum penalties.

HKIAC releases updated 2024 Rules

On 3 May 2024, the Hong Kong International Arbitration Centre released the updated 2024 Administered Arbitration Rules, which will take effect on 1 June 2024.

Appeals court partially supports the declarer in a dispute on the inclusion of dividends in customs value

On 25 April 2024, the Twelfth Arbitration Appeals Court issued a ruling partially upholding the importer’s petition to annul decisions of the Astrakhan Customs House that served as a basis for including dividends in customs value and charging additional customs payments.

Direct ban imposed on setoff of obligations owed to creditors and company shareholders from “unfriendly” states

State Duma adopts draft law on indexation of the thresholds for large and especially large damage for certain economic offences

Russian investors allowed to receive funds payable in respect of securities from Type C accounts

On 19 March 2024, the President of the Russian Federation signed Decree No. 198 “On additional temporary measures of economic nature related to the performance of obligations under certain securities”. Decree 198 establishes the procedure for receiving securities related payments owed to certain categories of holders from funds blocked in Type C accounts.

Disputes continue regarding the application of anti-suit injunctions and force majeure due to sanctions

Russian courts continue to consider disputes related to sanctions restrictions imposed by foreign states. In March 2024, further rulings were adopted which developed the existing practice of applying the provisions of article 248.1 of the Arbitrazh Procedure Code of the Russian Federation (exclusive jurisdiction of Russian courts), article 248.2 of the Arbitrazh Procedure Code of the Russian Federation (anti-suit injunction) and article 401 of the Civil Code of the Russian Federation (force majeure) in connection with the imposition of sanctions. Read further in our legal update.

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