To prevent foreign investors from abusing their rights in relation to Russian strategic companies, the prior-clearance rules have changed to qualify transactions for a stake in this type of company. The change was made to protect strategic companies from undisclosed foreign interference and has resulted in a more transparent foreign investment environment in Russia.

Oliver Werner has made Partner at and become Managing Partner of CMS Bratislava, and new Partner Sona Hankova has joined the firm from EY Law.

Indir Osmic has made Local Partner at CMS Sarajevo.

Partly due to the Covid-19 pandemic, Russia’s legislative process has slowed down, says CMS Moscow Partner Anton Bankovskiy. “However,” he says, “the ‘regulatory guillotine,’ – the ongoing process of amending or eliminating the many laws remaining from the country’s Soviet past – has picked up pace.” In addition, he says, “the State Duma recently passed new laws introducing the ‘regulatory sandbox’ framework, which enables companies and entrepreneurs to implement innovative technologies, unrestricted by the current legal limits related to those technologies.” 

On 8 September 2020, Russian and Cypriot authorities signed* a Protocol amending the applicable double taxation treaty (DTT).

Schoenherr’s Budapest and Prague offices have advised Covivio on its lease of the Carlo IV hotel in Prague and the New York Palace and New York Residence hotels in Budapest to the NH Hotel Group. CMS advised the NH Hotel Group on the deal. 

CMS has advised ACWA Power, Blackrock, and Crescent Capital on their sale of ACWA Power CF Karad PV Park and NOMAC Bulgaria, which operate the 60 MWp Karadzhalovo photovoltaic plant in Bulgaria, to Enery Development GmbH. Schoenherr advised the buyer on the deal.

“This year was not chaotic just due to Covid-19 or the earthquake that struck Zagreb,“ says CMS Partner Marija Zrno Prosic, “but also because of the parliamentary elections that were held in July.“ 

Starting from 1 January 2019, Russia has been implementing a programme of “waste reform” to radically change its municipal waste-management system across the country. Many of the scheduled preparation and organisational arrangements have already been implemented or are in the pipeline.

For our Checking In feature, we reach out to partners and heads of practice across CEE to learn how specific practice areas are faring in their jurisdictions. This time around we asked firm Energy experts: What, in your view, is the most effective scheme currently in place in your jurisdiction to attract investments in renewable energy? If you had to pick one, what additional step from the regulators do you believe would have the most positive impact?

On 31 July 2020, the Russian President signed Federal Law No. 265-FZ* (the “Law”) enacting a tax manoeuvre for the Russian IT industry. How will this manoeuvre affect domestic and foreign market players in this field?

The Warsaw office of Wolf Theiss has advised the European Investment Bank on a EUR 10 million financing to Scope Fluidics S.A., a Polish medical technology company that designs diagnostic systems. CMS advised Scope Fluidics on the deal.

CMS has advised Aareal Bank on the EUR 153 million refinancing of Accolade Group’s industry parks portfolio, which includes locations in the Polish communities of Szczecin, Bydgoszcz, Lublin, Legnica, Bialystok, and Zielona Gora.

On 8 July 2020, the Presidium of the Russian Supreme Court approved a Review* on specific issues of judicial practice related to the adoption of measures by the courts to counter illegal financial transactions.

CMS has advised AFI Europe, a property investment and development group in Romania, on its share acquisition of six companies owning four Class A office projects in Romania from NEPI Rockcastle. Herbert Smith Freehills and Reff & Associates – the Romanian member firm of Deloitte Legal – advised NEPI.

Former Dentons Partner Marcell Clark has joined CMS in Vienna.

On 6 August 2020, the Federal Tax Service of Russia (FTS) issued a Letter of long-awaited clarifications* on the taxation of services rendered to Russian taxpayers by interdependent foreign organisations that are part of the same international group of companies.

As Europe begins a tentative re-opening following several difficult months of quarantining, social distancing, and working-from-home, we spoke to CMS’s Warsaw-based Employment Partner Katarzyna Dulewicz and Vienna-based Dispute Resolution Partner Daniela Karollus-Bruner for their perspective on the process.