The Legal 500

RELATION TO APPLYING INSOVENCY (BANKRUPTCY) LEGISLATION FOR QUARTER I OF 2012

Specifics of enforcing the consequences of the invalidity of a transaction whereby a pledgeholder leaves pledged property in its ownership.

Sergey Pepeliaev, Managing Partner of Pepeliaev Group, PhD in Law

On 15 March 2012, the Presidium of the Russian Supreme Arbitration Court (SAC) heard the ‘Aelita Software Corporation’ case, in which the corporation, having won a case against the tax authorities, sought to recover RUB 2.89 million from those authorities in legal costs for its representatives’ fees. 

Commercial arbitration proceedings play an important role in settling commercial disputes in the modern business environment despite the high costs and possible complications with having the arbitral awards enforced (note that here and below we mean commercial arbitration).

Legal Update No. 317

Goltsblat BLP advises of publication of Supreme Arbitration Court Resolution No. 3844/11 dated 25 October 2011 on the case of OOO Tulatsement. The Resolution confirms the possibility to recover input VAT on repairs to another person’s property, even if the taxpayer has no right to such property and other people or entities may also use such repair results. 

Legal Update No. 290

Goltsblat BLP advises of publication of Resolution No. 443/11 of the Presidium of the Supreme Arbitration Court (SAC) dated 13 September 2011 clarifying pricing of shares to be sold pursuant to article 84.8 of the Federal Law “On Joint-Stock Companies”.

Legal Update No. 283.

Goltsblat BLP advises that Federal Law No. 289-FZ of 21 October 2011 “On Amendments to the Federal Law on the Procedure for Publishing and Enacting Federal Constitutional Laws, Federal Laws, and Acts of Chambers of the Federal Assembly” (the Federal Law) came into effect on 10 November 2011.

Legal Update No. 282.

Goltsblat BLP advises that Resolution No. 1795/11 of 13 September 2011 of the Presidium of the Supreme Arbitration Court of the Russian Federation (the Resolution) has been published on a case brought by Stena RoRo AB (Sweden) for supervisory review of judicial acts following a lawsuit by Baltiysky Zavod shareholders against the Plant and Stena RoRo AB seeking to invalidate obviously detrimental transactions concluded by the Plant.

Through Decision No. 19, dated 27 November 2009, of the Inter-State Council of the Eurasian Economic Community (the Customs Union’s supreme authority), from 1 January 2010 the Member States of the Customs Union, Russia, Belarus and Kazakhstan, transferred to a supranational body (the Commission of the Customs Union) the power to adopt measures arising from national interests and concerning the external trading of goods. As a general rule, therefore, such measures may no longer be enacted by way of national legislation.  

On 1 February 2010, the Federal Law "On the Principles of State Regulation of Trading Activity in the Russian Federation" (the "Law") comes into force, which will substantially change the rules applicable to trade activities.

An amended version of the draft Federal Law "On Circulation of Medicines"  was placed on the website of the Russian Ministry of Healthcare and Social Development on December 3, 2009. The initial Draft Law was published on the same website on July 8, 2009, attracting much attention and criticism. Many suggestions were made to improve the initial Draft Law so as to ensure the effective functioning of the Russian pharmaceutical market. 

Federal Law on Amendment of Certain Legislative Acts of the Russian Federation No. 205-FZ, adopted on July 19, 2009, has introduced changes in the laws and regulations on legal entities. The changes form the so-called “anti-raiding package” that will be broadened by further new amendments of legislation in the nearest future. The main provisions of the Law will come into force 90 days upon its promulgation.

Numerous changes to Russian competition legislation came into effect in August 2009.The changes significantly expand the application of the Law and clarify the competence of the Russian Federal Antimonopoly Service (the "FAS"), alter the dominant position rules, the concept of "monopolistically high" and "monopolistically low" prices, introduce significant changes to the provisions dealing with vertical agreements, raise the thresholds that trigger the requirement for clearance of acquisition transactions through FAS, set the period for institution and consideration of cases on violation of antimonopoly legislation, and also otherwise augment and clarify various legislative acts in the area of antimonopoly regulation.

The latest amendments to the Federal Law “On Joint Stock Companies”  which came into effect on June 10, 2009 permitting shareholders agreements, are expected to give shareholders greater flexibility in regulating their relations, and to put an end to the practice of Russian courts invalidating shareholders agreements, including those governed by foreign law.

Any phenomenon tends to appear at a particular time and place given the appropriate pre-requisites and favourable environment giving rise to it. This is truly applicable to Securities Litigation. The phenomenon sprouted in Russia at the turn of 2008/2009, and is expected to boom within the several years to come.