The current primary focus of the Czech government is to help Ukrainian refugees and deal with the various issues surrounding sanctions against Russia, according to Kinstellar Partner Jan Juroska.
"The current Czech government only recently assumed office," explains Juroska. "Their primary focus at the moment is to address the Ukrainian refugees situation as well as implementing sanctions against Russia." In terms of refugees, he says, that the government is in the process of adopting and changing the relevant regulatory framework, in order to provide refugees with the necessary protections, access to medical care, education, social insurance benefits, and the right to enter the employment market. He adds that, while "no major reforms are expected this year, there is some new legislation to be approved such as new legislation governing whistleblowing as well as legislation to regulate crowdfunding. In addition, certain EU directives need to be transposed into Czech law, but obviously, right now all eyes are on Ukraine."
Juroska points out that the Czech Bar Association is actively issuing guidelines to help Czech lawyers volunteer to support Ukrainian refugees with paperwork and administrative matters. To that end, he adds, various state-run and non-state-run websites have recently been translated into Ukrainian so as to offer easy access to those in need. "The overall atmosphere in the country is highly sympathetic and supportive towards the tens of thousands of refugees fleeing from the east," says Juroska. The country, he adds, has "truly opened up [its] hearts, homes, and wallets in every respect."
In terms of what the current conflict means for the business environment, Juroska says that these are undoubtedly unprecedented and very challenging times. "During the past few weeks, a number of cross-border M&A deals have been put on hold. Local deals, on the other hand, are still going forward. But it remains to be seen how the conflict will affect the market and, in particular, how banks will price in the current uncertainties and associated risks and whether they will even continue to finance certain projects."
Juroska predicts that the overall economy will slow down as a result of supply chain issues, increased commodity prices, and high inflation (all three are already an issue post-COVID-19). "Some of our commercial clients have already suspended or reduced production as imports from Ukraine have been disrupted, or as a result of significant increases to commodity prices."
