Dechert LLP (JD Supra Russia)

In an effort to reduce bureaucratic procedures and address deficiencies in Russian law with regard to strategic investments by foreign entities in Russia, amendments to Federal Law No. 57-FZ “On Procedures for Foreign Investments in Business Entities of Strategic Importance for Russian National Defense and State Security”, dated April 29, 2008 (as amended) (the “Strategic Sectors Law”) were...

In January 2021, Federal Law No. 259-FZ “On Digital Finance Assets, Digital Currency and on Introduction of Changes to Separate Legal Acts of the Russian Federation” (the “Digital Law”) came into force becoming one of the first regulations in Russia to address the issuance, recording and circulation of digital financial assets (“DFAs”) and the circulation of digital currency in Russia. 

President Vladimir Putin signed a bill on June 8, 2020 designed to provide legal recourse, in certain cases, to Russian (and foreign) persons who have been sanctioned by foreign states.

As of May 12, 2020, the period of so-called "non-working days" established by Presidential Decrees No. 206, dated March 25, No. 239, dated April 2, and No. 294, dated April 28 in Russia officially ended. Although most of the COVID-19 protective measures still apply at the regional level, Russian federal and regional authorities are expected to issue further regulations and guidance regarding the...

On April 21, 2020, the Presidium of the Supreme Court of the Russian Federation issued an “Overview of selected issues of judicial practice, related to the application of legislation and measures to stop the spread of the coronavirus infection (COVID-19) on the territory of the Russian Federation No. 1” (the “Overview”).

On April 2, 2020, President Putin issued an order (Order “On Measures to Ensure Sanitary and Epidemiological Safety of the Population”) which extended the period of non-working days until April 30, 2020 in an effort to combat the spread of Coronavirus (the Presidential Order).1 The Presidential Order also grants power to regional authorities to determine which organizations are exempt from the...

The upper house of the Russian Parliament, the Federation Council, approved a draft law on counter-sanctions (the “Counter-Sanctions Law”) on May 30, 2018, which appears to be identical to the version adopted by the Duma last week (the approved text was unavailable at the time of distribution). The draft law now goes to President Putin for signature. Given the current language of the draft law...

Second Draft Somewhat Softens Previous Provisions Widely Reported In Media - In response to the most recent round of U.S. sanctions against Russian entities and individuals, which were arguably the most profound in terms of their impact, the lower house of the Russian Parliament, the Duma, this week initiated deliberations on two laws which, if adopted, would provide additional instruments for...

Russian President Vladimir Putin has recently signed into law certain amendments to Federal Law No.149-FZ on Information, Information Technologies and Protection of Information (the “IT Law”). The measures introduced by Law on Amendments to IT Law No.276-FZ, dated July 29, 2017 (the “Law on Amendments”) grant significant powers to Russian regulatory authorities to potentially pursue persons/entiti

- Recent amendments to Russia’s data processing rules require that databases used to process personal information of Russian citizens be located in the Russian Federation, even if the data is maintained by foreign corporations - LinkedIn is the first international operator to be banned for violation of this localization requirement by the blocking of its services in Russia - There is a...

A number of significant amendments to Russian labor legislation entered into force on October 3, 2016. The amendments were introduced by Federal Law No.272-FZ “On Introducing Amendments to Certain Legislative Acts of the Russian Federation on the Issue of Increasing Employers’ Liability for Violating Labor Legislation with Regard to Payment of Labor”, signed into law on July 3, 2016 (the “Amendmen

Is Russian employment law a codification of rules? Yes. Is Russian employment law protective of employees? Yes. Is Russian employment law complex? Certainly. However, we would like to note that Russian employment law is similar to that of other countries in many ways. Although relatively well-developed, Russian employment law has not yet been fully adapted to the constantly evolving...

A new version of the Russian Competition Law amended by the so-called ‘fourth antimonopoly package’ (the “275 Law”) came into effect on January 5, 2016 (except for certain minor provisions with an earlier effective date). The 275 Law includes long-expected changes to the Competition Law, the Natural Monopolies Law and the Administrative Code, which will significantly affect M&A and joint venture...

A new version of the Russian Competition Law amended by the so-called ‘fourth antimonopoly package’ (the “275 Law”) came into effect on January 5, 2016 (except for certain provisions). The 275 Law includes long-expected changes to the Competition Law, the Natural Monopolies Law3 and the Administrative Code, which, inter alia, will significantly affect M&A and joint venture transactions in Russia.

Dechert lawyers representing a major international bank in court proceedings in a number of regions in southern Russia with respect to claims to recover a total of about US$300 million in loan funds from the guarantors of a Russian and Ukrainian agricultural holding company, prevailed on procedural grounds when the Fifteenth State Arbitrazh (Commercial) Appellate Court (Rostov-on-Don) ruled in...

The procedure for the accreditation of branches/representative offices of foreign companies (“Branches/ROs”) in Russia, as well as for obtaining the personal accreditation of foreign employees of such Branches/ROs, was effectively changed by Federal Law No. 106-FZ “On Amendments to Certain Legislative Acts of the Russian Federation”, which was signed by President Putin on May 5, 2014 and entered...

As of August 4, 2014, citizens with dual citizenship have to inform Migration Services of their second citizenship. Criminal liability for non-compliance with the requirements is fee from RUB 200,000 or compulsory community service for 400 hours.

Special assessment of workplaces - In an effort to improve worksite safety conditions, a new procedure for assessing labor conditions has been established by the Federal Law No. 426-FZ "On Special Assessment of Workplace Conditions," dated December 28, 2013, which became effective on January 1, 2014.

The RF Central Bank reconsidered the remuneration system of bank employees such that their remunerations will depend on the financial results of the bank’s activity. The RF Central Bank instruction No. 154-? (the "Instruction"), issued on June 17, 2014, is aimed at further securing the financial stability of Russian banks.

The RF Labor Code was amended to address certain issues regarding compensation, including with respect to golden parachutes for state companies' employees, which are now subject to various limits.

Prior to 2014, secondment arrangements had not been clearly regulated by either Russian labor or civil law, with many Russian companies operating under the pretense that as long as it is not forbidden, it might as well be considered legal. However, this thinking caused many problems because the Russian state bodies generally do not recognize secondment agreements as valid documents (except in a...

By October 2, 2014, all Russian joint stock companies (both open joint stock companies and closed joint stock companies) that maintain their own shareholder registers must transfer their registers to professional registrars.

In response to the recent round of sanctions and export restrictions imposed on Russia, Russian Federation President Putin signed a decree on 6 August 20141 (the “Decree”) effectively banning or limiting for a period of one year (beginning from 7 August 2014) the import of selected agricultural and food products from countries who have sanctioned Russia, specifically the U.S., the countries...

The Plenum of the Supreme Arbitrazh Court at the end of August 2013 published Resolution No. 62 (the "Resolution"), dated 30 July 2013, which provides a number of clarifications with respect to the liability of officers of Russian companies.

Despite having been amended twenty times to date, Federal Law No. 135-FZ: "On Protection of Competition" dated July 26, 2006 (the "Competition Law"), passed in July 2006 with the aim of effectively regulating monopolistic activity and eliminating unfair competition, still contains a number of excessive administrative barriers that confuse and sometimes unnecessarily burden companies operating in...

Beginning January 1, 2014, the regulatory framework for the payment of dividends in Russia will change considerably, which should result in more efficient and transparent distributions of dividends from Russian companies.

In defending their property rights in the Russian Federation (the “RF”), plaintiffs sometimes fail to either establish the appropriate legal means to pursue a claim in court or correctly identify the defendant. In an attempt to clarify the process by which property rights are defended in court, the Supreme Arbitrazh (Commercial) Court of the Russian Federation (the “SAC”) on March 12, 2013...

Significant New Amendments to the Russian Labor Code - During the first half of 2013, a number of amendments were introduced into the Russian Labor Code. These amendments relate to remote employment, production councils (described below), and certain categories of employees of the state, non-budgetary funds, and public institutions.

In keeping with the commitments it made prior to joining the World Trade Organization (WTO) to remove inconsistencies in legislation regulating the Russian banking sector, the Russian Government passed the Federal Law “On Amendment of Certain Legislative Acts” (the “Amendments”), which entered into force on March 26, 2013 and officially bans foreign banks from opening branches in the Russian...

On July 1, 2013, the Federal Service for Financial Markets (“FSFM”) announced that it had opened its first investigation into a potential violation of the Insider Trading Law, which had entered into force in June 2010. However, on July 25, 2013, President of the Russian Federation Vladimir Putin signed the Order "On Dismissing of FSFM", effectively transferring all of the authorities of the FSFM,