The real estate market is booming in Poland and other CEE countries, as it has been for the last several years. New investments are being made to develop commercial centers, office buildings, residential properties, and logistic centers.
Prospects of Capital Control Liberalization in Ukraine
Currency regulations in Ukraine have always been among the most significant impediments to foreign investments and access of Ukrainian businesses to foreign markets. In 2014, substantial external imbalances, capital flight risks, and panic in the foreign exchange market prompted the National Bank of Ukraine (NBU) to adopt tight capital controls, a number of which remain in effect. Notwithstanding the alleged soundness of such temporary measures, both foreign investors and Ukrainian businesses have long called for clearer and more predictable currency regulations, as well as safeguards to protect their interests. In July 2018, Ukraine finally adopted the long-awaited “On Currency and Currency Transactions” law (the “Currency Law”) which is intended to replace the archaic currency control legislation. The effectiveness of the new legal framework, however, can only be assessed once the NBU lays out detailed rules in its regulations.
PSD2 – Will the New Regulation Disrupt the Established Banking Industry in Slovakia?
Alongside blockchain and crypto currencies, the Payment Services Directive 2 (PSD2) has become a much talked-about buzzword in the FinTech world - sparking discussions about a revolution in banking and financial services. One may argue that disruption to established practices may only result from technological advancement and not from (yet another) massive bundle of regulatory rules. However, through PSD2, the shift towards open banking is being fostered by the European legislator to support innovation and improve competition in the payment services area.
Tokenized Assets in Lithuania’s Legal Environment
In recent years, blockchain technology has offered the business world a variety of new and innovative ways to improve and grow. Starting with initial coin offerings, blockchain technology has found its way into the financial services industry and many other fields of business in Lithuania. The trend of “asset tokenization” has recently become popular among companies seeking to adopt innovative modern technologies and create novel ways to apply blockchain technology when doing business. However, as convenient and simple as it may seem, asset tokenization is an extremely complicated business model, challenging not only the traditional approaches to the sale and purchase of assets, but also raising questions about the relevance of applicable laws and regulations currently in effect.
Digitalization: On the Road to Regulation
During the last decade, customary business processes have been disrupted by new financial technologies such as blockchain, cryptocurrencies, blockchain tokens, and smart contracts. The appropriate regulation is on its way in Russia, as Russian regulators have recently shifted their focus from imposing a ban on cryptocurrencies to looking for ways to regulate the new relationships. As a result of prolonged discussion about the legal nature of tokens and cryptocurrencies, the authorities have come up with two bills designed to set a cornerstone for Russian regulation of the digital economy.
Syndicated Facilities Under Russian Law – Developments and New Challenges
Below we highlight key developments and challenges related to the new Russian law on syndicated facilities.
Legal Regulation of Virtual Currencies in the Czech Republic
The legal regulation of transactions with virtual currencies and Initial Coin Offerings / Initial Token Offerings is a topic of ever more frequent discussion in the Czech Republic. The ano-nymity of cryptocurrency transactions has been reduced by the introduction of Anti-Money Laundering (AML) rules, while the Czech regulator’s approach to the regulation of trading with virtual currencies is very liberal.
Russian Anti-Sanctions Measures
In June of this year Russia adopted a law giving the Russian President broad authorization to retaliate for foreign sanctions. The Russian parliament is also currently considering a bill that would criminalize compliance with U.S. and other foreign sanctions against Russian parties. While the practical impact of the additional authorization for the President is unclear, criminalization of compliance with foreign sanctions may have serious negative repercussions for U.S. and European businesses operating in Russia or having other Russian exposure.
A Blessing and a Curse: Sanctions a Mixed Bag for Foreign and Domestic Law Firms in Russia
Why are domestic firms in Russia doing so well, when their international counterparts continue to struggle?
Guest Editorial: Russia – As Unpredictable As Ever
Throughout my career, the only predictable feature of the Russian market has been its unpredictability. Given what has happened in Russia in the first months of 2018, it would appear that foretelling the future is not about to get any easier.
Guest Editorial: Work to “International Standards” vs. Local Reality
Ever since the CEE market opened for private practice CEE lawyers have sought to work on international mandates in collaboration with international lead counsels. Apart from the obvious (we take an oath to serve justice, but it is no secret that we also in fact work for money), the benefits of this cooperation also include the opportunity to draw on the international counsel’s expertise, particularly in transactional work. Such cooperation has greatly influenced the work of local counsel. Those who seized the opportunity had a steep learning curve and developed their practices to a level that is generally referred to, mostly in lawyers’ own pitches, as reaching an “international standard.”
Tackling Turkey’s Credit Gap with Gender Bonds
In the summer of 2018, CEE Legal Matters reported that Turkey’s Garanti Bank had issued its first-ever Gender Bonds. The bonds, valued at USD 75 million and issued in partnership with the Women Entrepreneurs Opportunity Facility launched by the IFC through its Banking on Women Program, and Goldman Sachs 10,000 Women initiative, are meant to finance small enterprises and companies owned or managed by women in Turkey.
Corporate M&A in Slovakia
After undergoing healthy levels of Corporate/M&A activity in recent times, as we move towards 2019 we expect the Slovak market to remain stable. A notable exception, however, is in the logistics asset class, where we project inbound investment to soar.
Regulation on Addressing Unjustified Geo-blocking and Other Forms of Discrimination
Internet traders, who have not yet managed to recover fully from the effects of the GPDR on their activities, are already facing another regulation likely to have a significant impact on technical solutions used in the operation of Internet businesses. In March 2018, Regulation (EU) 2018/302 (the “Regulation”) was adopted, the purpose of which is to solve so-called “unjustified geo-blocking” by removing certain obstacles to the operation of the internal market and by preventing discrimination based on nationality, place of residence, or place of establishment in cross-border online transactions.
Changes in Real Estate Due Diligence on the Horizon?
When acquiring a company owning real estate or an independent property, a check of the seller’s title to the real estate is an integral part of the due diligence process. The scope of the due diligence that is necessary is about to be narrowed.
Guest Editorial: A Quarter Century in the Czech Legal Market
I started my legal career back in 1993 as a student clerk, and over the past 25 years I have literally grown up with the firm. I’ve had the pleasure of advising clients during some of the most exciting periods in Czech history – from the “Wild Wild East” of the nineties, to EU accession, through the global financial crisis and recovery.
Take the Stage: Legal Tech Fallacies and the Structural Transformation of the Legal Profession
It was in early 2009, within a London Business School program, when I was first faced with a clearly articulated and empirically supported argument about the advent of legal technology and the structural transformations in the legal services market that were likely to ensue.
CEE Real Estate Landscape – The Market at a Glance
The widespread perception remains that the real estate market in CEE is undervalued and continues to offer exciting opportunities for investors. It would seem this is with good reason and early signs suggest that this year we may approach record levels of activity in the sector.