News

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.”

VAT on royalties: overview of current enforcement trends

In this legal update, our team addresses current trends in the development of court cases related to charging agency VAT additionally on the customs value of goods, and gives recommendations regarding the mitigation of the related risks.

UK prohibits legal services for certain transactions

On 30 June 2023, amendments to The Russia (Sanctions) (EU Exit) Regulations 2019 entered into force. The amendments to the Regulations prohibit UK Persons who are UK lawyers from providing legal advisory services to clients who are not UK Persons (ie, not only Russian clients), and in respect of certain financial or trade activities prohibited by UK sanctions.

EU extends ban on selling securities to Russian persons

On 23 June 2023, regulations formalising the European Union’s “Eleventh Package” of restrictive measures were published and entered into force.

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