2019 was an outstanding year for Ukrainian gas sector, as the country managed to complete the most critical parts of the unbundling of the gas transmission system in a timely manner. The year was also remarkable because, in twelve months, we saw three different unbundling models proposed by the Government, forcing the participants of the unbundling process and the key stakeholders to quickly adapt to the new rules and scenarios. For most of the year the country planned to implement an ownership unbundling model. However, in September 2019, before the third round of trilateral Ukraine-Russia-EU talks on gas transit, the unbundling plan took a U-turn, when the newly appointed Ukrainian Government, in its Resolution 840 (the “New Unbundling Resolution”), decided to switch to the independent system operator (ISO) model.
Changes Expected by Joint Stock Companies in Ukraine
Since 2008 joint stock companies in Ukraine have functioned under a special corporate governance law (the “JSC Law”), which has improved through the course of its existence. Year after year, with the help of the SEC and the business community, Ukrainian legislators have introduced profound amendments to the law to bring corporate governance in JSCs in Ukraine closer to European standards, to attract foreign investments, and to insure adequate protection of rights of various stakeholders (minority shareholders, creditors, etc.) As a result, Ukraine has moved up in the World Bank’s Doing Business ranking, and in 2020 the country ranks 64th in the ease of doing business and 45th in the minority shareholders protection component.
Expat on the Market: Interview with Daniel Bilak of Kinstellar
Daniel Bilak is the former Managing Partner at CMS Kyiv, Chairman of UkraineInvest, and new Senior Counsel at Kinstellar, on his diverse background and fascinating career.
Marketing Law Firm Marketing: Childhood Dreams
We decided to lighten the mood this time around by asking our Law Firm Marketing experts from across the region a non-law-firm related question: “What did you most want to be when you were little?”
The Big Deal: Interview with CMS’s Eva Talmacsi About OTP/Societe Generale Acquisitions
Over the past few years CMS advised the OTP Bank Group on an extensive series of acquisitions across Bulgaria, Moldova, and former Yugoslavia. This series of separate deals was shortlisted for CEE Legal Matters’ CEE Deal of the Year in each of the countries involved, actually winning the 2018 Deal of the Year for Bulgaria and the 2019 Deal of the Year Award for Montenegro. We reached out to Eva Talmacsi, who led CMS’s multi-jurisdictional team, to learn more about the firm’s impressive work on OTP’s behalf.
Raising The Bar: Hungary’s New CLE Requirements for Lawyers
On January 1st, 2020, the Hungarian government adopted new legislation making continuing professional education compulsory for lawyers, post-qualification, along the lines of post-certification training and education that tax advisors and accountants had been forced to obtain for many years.
Russia Adopts Law on Financial Marketplaces
On 20 July 2020, laws governing the activities of financial marketplaces came into force, namely, Federal Law* No. 211-FZ “On Concluding Financial Transactions Using a Financial Platform” dated 20 July 2020 and Federal Law* No. 212-FZ “On Amendments to Certain Legislative Acts of the Russian Federation Concerning the Conclusion of Financial Transactions Using a Financial Platform” dated 20 July 2020 (the “Laws”).
Eurolex Bulgaria and CMS Advise Plovdiv Railway Project Consortium on Public Procurement Tender in Bulgaria
Eurolex Bulgaria and CMS have advised Trace Group Holding and Balkantel — both members of the Plovdiv Railway Project Consortium — on their successful participation in a tender for a EUR 45 million railway public procurement project in Bulgaria.
Russia Remains Set on Import Substitution for State-Procured Goods
The existing ban on the state procurement of foreign industrial goods has been generalised under a Russian Government Decree* which came into force on 1 May 2020.
Katya Todorova Joins CMS Sofia as Head of Capital Markets
Former Dimitrov, Tchompalov & Todorova partner Katya Todorova has joined CMS Sofia as Head of Capital Markets.
Will Rates in Double Taxation Treaties Increase in the near Future?
There are currently multiple initiatives regarding the increase in rates for taxes retained at source under double taxation treaties (“DTTs”) between the Russian Federation and some foreign jurisdictions. The Ministry of Finance confirmed that it favours such increases. At the same time, the Russian State Duma reportedly favours maintaining reduced tax rates in DTTs for intragroup payments in order to mitigate any eventual adverse tax consequences by these new tax measures for foreign investors.
CMS Advises EBRD on Renewable Energy Investment in Ukraine
CMS has advised the European Bank for Reconstruction and Development on a loan of approximately USD 13.9 million to Ukraine's Irshanska SES LLC.
Turunc and YBK Advise on Acquisition of Majority Stake in Turkish Online Travel Agency
The Turunc Law Firm has advised a group of private investors led by Cetin Yilmaz on their acquisition of MCI's majority stake in online travel agency Tatilbudur from Polish private equity fund MCI. The Yalcin Babalioglu Kemahli Attorney Partnership advised MCI on the deal, while Akol Law advised shareholder Is Girisim. Tatilbudur was reportedly advised by Yondem Yigit Uclertopragi.
CMS Successful for GE Healthcare in Challenge to Russia's Healthcare Regulatory Authority
CMS Moscow has successfully represented the interests of GE Healthcare in several court proceedings against the Russian healthcare regulatory authority Roszdravnadzor.
Russian Supreme Court Rules Against Formalistic Approach to Assessment of VAT Offset Grounds
On 14 May 2020, the Russian Supreme Court issued a decision* in favour of a Russian taxpayer (the “Decision”), which contains detailed guidelines on how to assess the good-faith conduct of Russian taxpayers claiming VAT offset.
CMS Helps MoneyGram Register as Operator of Foreign Payment Systems in Russia
CMS has helped money transfer provider MoneyGram register as an operator of a foreign payment system with the Central Bank of the Russian Federation.
Experimental AI Regime to Be Introduced in Moscow
From 1 July 2020, an experimental legal regime is being introduced in Moscow for a five-year period. The Law is aimed at creating the necessary conditions for the development and introduction of artificial intelligence technologies, and the subsequent use of the results of their application.
Bank of Russia Simplifies Procedures for Issuing Securities and Disclosing Information
On 11 May 2020, a new Bank of Russia Regulation* “On Standards for the Issuance of Securities” (the “Regulation on Issuance Standards”) came into force. The regulator updated this Regulation in line with amendments* to the Federal Law “On the Securities Market”, which came into force on 1 January 2020.