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Anton Subbot

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Anton Subbot heads the Antitrust & Competition Practice Group in Baker McKenzie's Moscow office. Prior to joining Baker McKenzie, he worked as a legal adviser in a Russian firm. Mr. Subbot has been ranked by Chambers Europe and recognized in Global Competition Review’s GCR 100 for his work on antitrust matters.

Russia’s Supreme Court confirmed that a company can be liable under Article 19.28 of the Administrative Procedure Code (“Illegal remuneration on behalf of a legal entity”) for the actions of third parties with whom that company has no formal contractual, employment, or other legal relationship.1

The court clarified that a company may be held liable if its officers either knew about such actions, or approved or instructed the respective third parties with regard to such actions. Another requirement for prosecution is that the company must have an “economic or other material interest (for example, a reputational one)” in the performance of such actions.

In light of this clarification, companies now face increased risk under Article 19.28 for the illegal actions of persons such as employees of their dealers, distributors and other counterparties.

The Russian Ministry of Labour (“the Ministry”) issued three new sets of anti-corruption guidelines for companies: “Measures for Preventing Corruption at Organizations”1 “Memorandum on Establishing the Duties of Employees for Preventing Corruption, Employee Liability, and Incentive Programs”2 “Recommendations on the Procedure for Assessing Corruption Risks at Organizations”3 The new guidelines…