On 25 November 2021, the new draft bill was registered in the State Duma providing for the extension of the exclusive competence of Russian arbitrazh (commercial) courts. The future amendments will provide the right for Russian persons to file a lawsuit against a foreign person who directly or indirectly contributed to the adoption of restrictive measures.
In July 2021, Russia adopted its first ever law on reducing greenhouse gas emissions (“Core GHG Law”). The Core GHG Law establishes the framework for federal-wide mandatory carbon reporting and voluntary climate projects. It does not set a price on carbon — either as a carbon tax or as an emission trading system.
On 22 November 2021, significant changes to the Russian Labor Code came into force regarding the use of electronic documents in labor relations. Now, employers have the right to use an electronic workflow in relation with employees without duplicating personnel documents on paper. With regard to distant employees (for whom an electronic workflow was introduced on 1 January 2021), employers can either continue to use the previously introduced workflow procedure (including the exchange of documents by email) or apply the rules established by the new law.
Join us for an international conference at which Baker McKenzie experts will share the most recent developments in the areas of sanctions, export controls, anti-corruption legislation, customs and Russian trade protectionism. The Russia Trade Days event will take place from 7 – 10 December 2021.
Welcome to this issue of the Global DR Legal Update, our quarterly newsletter which aims to bring together the most important global developments in litigation and arbitration. If you have any questions, or if we can assist further, please get in touch with Ben Roe or Steve Adams.
In recent weeks, the US Government has imposed a series of additional sanctions against Russia consisting of additional measures focused on the energy pipeline sector, as well as further measures in response to the alleged poisoning of Alexy Navalny. This latest escalation of sanctions against Russia builds upon the April 2021 sanctions imposed pursuant to Executive Order 14024, “Blocking Property With Respect to Specified Harmful Foreign Activities of the Government of the Russian Federation.”
On 1 July 2021, Russia adopted a paradigm-shifting law that establishes, among other things, new physical presence requirements for major foreign technology companies doing business in the Russian Internet space. Affected technology companies are required to open either a representative office, a branch, or a subsidiary in Russia. This article provides a brief overview of this radical regulatory development and its Russian tax implications, reviews the compliance alternatives, and suggests means to mitigate the associated tax risks.
On 5 August 2021, the Office of Financial Sanctions Implementation (“OFSI“) imposed a GBP 50,000 penalty on TransferGo Limited (“TransferGo“), a UK FinTech company, for breaching UK sanctions when it issued instructions to make payments to accounts held at the Russian National Commercial Bank (“RNCB“), a designated party.
On 1 July 2021, President Putin signed one of the most significant bills of 2021 in Russia and in doing so turned Russian IT regulation on its head. The “Landing Law”, which regulates the activity of foreign IT entities in Russia, marks a new trend in the regulation of information technology in Russia.
The main development is that under the new law foreign information technology companies will be required to establish a physical presence in Russia.
From 1 March 2022, Russian business owners will be able to transfer business and personal assets worth at least RUB 100 million to new private foundations established under Russian law. As opposed to inheritance foundations, which have not caught on in Russia, private foundations can be established and tested during the lifetime of their founders.