The Legal 500

Russia > Energy and natural resources > Energy and natural resources

Akin Gump Strauss Hauer & Feld LLP retains its close ties to Russian oil giant Lukoil, recently advising on its €1.347bn acquisition of a 49% stake in a joint venture with ERG. The practice is led by office managing partner Rich Wilkie and Natalia Baratiants, with Alexander Danilov also receiving praise for his ‘in-depth knowledge’ and ‘tireless workrate’. Jonathan Socolow and Brian Konradi have left the firm to join DLA Piper.

In ‘seasoned veteran’ Jon Hines, Dewey & LeBoeuf LLP has one of the country’s finest oil and gas specialists. The practice spans oil and gas, power and mining, with recent highlights including advice to CNPC on its development of gas fields in the Amu-Darya Basin area of Turkmenistan; StatoilHydro on its participation in the $12bn Shtokman gas project; and two oil majors as shareholders in the Kashagan consortium exploration and production project in Kazakhstan on a range of issues including the restructuring and transport of oil, gas and LPG throughout the region. Clients ‘can’t praise them highly enough’.

So enamoured was one client with Freshfields Bruckhaus Deringer’s practice that they declared it to be ‘the best law firm for projects work in Russia’. Led by Jacky Baudon, the ‘consistantly reliable and helpful’ team advised Gazprom Neft on its potential acquisition of a 51% stake in Serbian national petroleum company Naftna Industria Srbije; IFD Kapital on $1.26bn issue of mandatory DECS over ADRs of Lukoil to finance the acquisition of equity in TGK-8; and E.On on the acquisition of a 70% stake in OGK-4. The team is praised for its ‘impressive insight into the legal and practical issues of doing business in Russia’, with project finance expert Michael Schwartz also highly recommended.

Daniel Tyrer’s ‘fantastic’ team at Linklaters CIS has seen an increase in financing work on downstream petrochemical projects. 2008 saw the ‘flawless’ firm advice the banks on the $1.5bn bridge finance for Gazprom and BASF’s Yuzhno-Russkoye gas project, Total E&P on its participation in the Shtokman gas field and Shtokman LNG project, and Gazprom Export and Gazprom on Nord Stream and their asset swap with Gasunie. Denis Uvarov and senior associate Julia Voskoboinikova are highly recommended.

Marc Polonsky’s ‘absolutely first class’ team at White & Case LLC received a boost with the relocation of London-based project finance partner Evgenia Laurson in April 2008. Recent highlights include advice to the lenders on the phase two financing of the Sakhalin II LNG project, UPM on the establishment of a €1bn joint venture with Sveza Group, and TNK-BP on the establishment of a gas-to-power joint venture with OGK-1. Oil and gas specialist Jennifer Josefson is also recommended.

CMS’s oil and gas practice is headed by Natalia Kozyrenko. Its year was punctuated by two standout deals, with the firm advising Norilsk Nickel on a $6bn project to develop a 375km railroad to mineral deposits in the Chita region, and Enisseyskaya Industrial on a $7bn project to develop the 460km Kyzyl to Kuragino railroad to coal deposits in Eastern Siberia. The firm also acted for BP on the Sakhalin IV and V projects, while other clients include Rosneft.

Having recruited practice head David Griston from CMS in 2007, Clifford Chance’s team was further bolstered by the relocation of global oil and gas head Bleddyn Phillips to Moscow in May 2008. The ‘quickly growing’ practice spans upstream and downstream oil and gas, mining and electricity, with recent highlights including advice to Nizhnevartovskaya GRES on construction and financing of a third 800MW unit at the Nizhnevartvosk power plant; the lenders on the €7bn Nordstream project; and Gazprom on E.On’s acquisition of a 25% stake in Severneftegasprom. Counsel Nicholas Dingemans and Maria Oleinik – the latter having been promoted in 2008 – are also recommended.

Much of the work of Denton Wilde Sapte’s Moscow office revolves around the oil and gas sector. Led by Moscow managing partner Doran Doeh, whose ‘modest manner belies his vast experience’, the firm recently advised CNOOC subsidiary China Oilfield Services Company on its acquisition of a Russian oilfield services company, while other clients include Royal Dutch Shell, Arawak Energy and ONGC Videsh. Other recommended members of the team, which also has a solid presence in the PPP market, include associates Alexander Popov and Vladislav Talatsev.

Herbert Smith CIS LLP’s progress in the sector is reflected by the fact that it received its first energy instructions from Gazprom in 2008. Highlights include advising Sinopec on its joint venture with Rosneft for the exploration and development of the Sakhalin III field, and Jogmec on its oil field exploration and development joint venture with Irkutskaya Neftyanaya Kompaniya.

Macleod Dixon ELP advised TNK-BP on subsoil issues and De Beers on acquisition of a diamond project in Russia, while other clients include Shell, Barrick Gold and GDF Suez. Leading mining expert Levon Kocharyan ‘possesses unique knowledge of Russian subsoil legislation, as well as excellent practical experience in the industry’. Anatoly Andriash and Aydin Jebrailov are also highly recommended.

Allen & Overy Legal Services is well known for project finance work in the oil and gas and power sectors, with 2008 seeing it advise Trans-Balkan Pipeline Company on the financing of the Burgas-Alexandroupolis crude oil pipeline. Clients were impressed with the ‘excellent experience’ of the team’s junior members.

Led by Carol Patterson, Baker & McKenzie – CIS, Limited advised West Siberian Resources on its $1.5bn merger with Alliance Oil and ArcelorMittal on its participation in an auction to acquire Elgaugol and Yakutugol shares, while other clients include Sibir Energy and Barrick Gold. Max Gutbrod has niche expertise in energy efficiency mechanism work and Alexey Frolov is also recommended.

Baker Botts L.L.P.’s practice was significantly boosted with the hire of corporate energy specialist Maxim Levinson, who joined from White & Case LLC with counsel Elena Stepanenko and Sergei Stepanov, and associate Konstantin Garmonin. The ‘upwardly mobile’ team advised Rosneft on the establishment of a joint venture with Chinese oil giant CNPC to build a 200,000 barrel-per-day refinery and 300 gas stations in China; and Gazprom on its co-operation agreement with TNK-BP and BP, and subsequent acquisition of TNK-BP’s 62.9% stake in Rusia Petroleum.

Chadbourne & Parke LLP’s ‘sheer quality’ practice is headed by oil, gas and LNG specialist Shane DeBeer. The team advised GLG Partners on its $210m acquisition of a stake in an anthracite producer in Siberia, and continues to advise Gazprom and its subsidiary Sevmoreneftegaz on the Shtokman LNG project. Office managing partner Laura Brank also has experience in the mining and metals sectors, while Konstantin Konstantinov has niche expertise in electric energy. Other clients include Norilsk Nickel, Chevron and Kinross.

Recent highlights for Debevoise & Plimpton LLP include its advice to Tobolsk Polymer on the construction and financing of the Tobolsk 
Polymer Propane Dehydrogeneration/Polypropylene Production Complex, and the OGK and TGK series of companies on a series of share issues, having advised RAO UES on the initial spin-offs as part of the reform of the Russian power sector. Other clients include Norilsk Nickel, ExxonMobil and Polyus Gold, while office chair Dmitry Nikiforov received plaudits from clients.

Led by Jane Tarassova, Salans advised Enel Spa on its consortium acquisition with Eni of $5.83bn of former Yukos gas assets, and Halliburton on its $38m acquisition of a drilling company. Other clients include Sun Mining, Shell Neft and Alrosa.

Vinson & Elkins L.L.P.’s fantastic reputation in the oil and gas sector is largely thanks to the efforts of ‘superbly talented and yet really down to earth’ Moscow co-managing partner Rob Patterson. The team, which is also active in the energy sector, recently advised Oman Oil Company on its $1.2bn acquisition of an 8% interest in MOL Hungarian Oil & Gas.

DLA Piper’s energy practice was significantly boosted by the hire of two energy-focused corporate partners from Akin Gump Strauss Hauer & Feld LLP. Jonathan Socolow and Brian Konradi. Led by Pavel Bakoulev, the team advised TNK-BP on the acquisition of over 100 petrol stations across Russia and Ukraine, and McDermott on the construction of a pipeline at the Korchagin oil field. Other clients include Gazprom and Marathon Oil.

Olga Revzina’s team at Gide Loyrette Nouel is particularly recommended for PPP work. The firm advised the bidding consortia on both the Nadex and Orlovsky Tunnel projects, and acted for the Government of Saint-Petersbug on the first phase of the Pulkovo Airport expansion project.

A highlight for Norton Rose (Central Europe) LLP’s energy practice was its advice to Archangel Diamond Corporation on its acquisition of an interest in Arkhangelskoe Geologobychnoe Predpriyatie, and subsequent agreement with Lukoil and De Beers Societe Anonyme relating to the development of the Verkhotina diamond project in northwest Arkhangelsk.

At Pepeliaev, Goltsblat & Partners, real estate head Vitaly Mozharowski and corporate head Anton Sitnikov both have niche expertise in energy.

PricewaterhouseCoopers CIS Law Offices BV’s practice spans oil and mining, gas, and power. Yana Zoloeva and Vladimir Sokolov are recommended.

Other recommended names include Nörr Stiefenhofer Lutz ooo’s Ilja Ratschkov, Russin & Vecchi LLC’s oil and gas expert Sergei Lazarev, Nana Suladze at Vegas Lex Law Firm, and YUST Law Firm’s Andrey Lisitsyn-Svetlanov. Laptev & Partners is also active in the sector.

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Legal Developments in Russia

Legal Developments and updates from the leading lawyers in each jurisdiction. To contribute, send an email request to
  • Tax Reforms Towards the Creation of an International Financial Center in Russia

    In December 2009 the Russian Parliament adopted important changes further promoting the Russian holding companies regime. Starting from January 1, 2011 Russian holding companies will no longer be required to meet the present 500 million ruble threshold for investments made into companies qualifying as “strategic investments” to receive tax benefits.
    - Baker & McKenzie
  • Rules for Tender Selection of Joint Implementation Projects under Kyoto Protocol

    On October 28, 2009, the Russian Government adopted two enactments concerning joint implementation projects under the Kyoto Protocol to the United Nations Framework Convention on Climate Change (the "Kyoto Protocol") in the Russian Federation, namely:
    - Baker & McKenzie
  • Federal Law "On the Principles of State Regulation of Trading Activity in the Russian Federation"

    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.
    - Baker & McKenzie
  • New Rules for Issuing Domestic Secured Bonds In Russia

    Starting January 2010, amendments to Federal Law No. 39-FZ “On the Securities Market” dated 22 April 1996 entered into force, affecting the issue of domestic bonds by Russian issuers. The new rules will apply to all domestic bond issues to be placed in the market after 31 December 2009.
    - Baker & McKenzie
  • 2010 quota for foreign workers distributed. List of quota-exempt professions for 2010 approved.

    In accordance with the order distributing the 2010 quota of work permits, a fixed number of work permits can be issued in each Russian region to work in different professions. Thus, for example, for Moscow the general quota for all professions is established at 250,000 work permits (which is considerably less than in 2009), and for St. Petersburg – 210,066 work permits.
    - Baker & McKenzie
  • Formation of the Customs Union of Russia, Belarus and Kazakhstan

    Russia, Belarus, and Kazakhstan will adopt new unified customs tariff and non-tariff regulations from January 1, 2010, and the Customs Union (the “CU”) of the three countries of the Eurasian Economic Community (the “EurAsEC”) will become a reality. The CU Customs Code (the “Customs Code”) is expected to take effect from July 1, 2010 to regulate the resulting integral customs zone.
    - Baker & McKenzie
  • New developments in Russian legislation on saving energy and increasing energy efficiency

    Federal Law No. 261-FZ “On Saving Energy and Increasing Energy Efficiency, and on Amendments to Certain Legislative Acts of the Russian Federation” came into force on November 27, 2009 (the “Law”), with certain provisions of the Law taking effect later. Changes to the Tax Code of the Russian Federation, for example, became effective on December 27, 2009, and those to the Code of Administrative Offences of the Russian Federation (the “Administrative Code”) take effect on June 22, 2010.
    - Baker & McKenzie
  • Changes re Criminal Liability and Prosecution of Tax Crimes

    On December 29, 2009 the RF President signed a law introducing important changes to criminal liability for tax evasion. It is established that a person violating the tax legislation may be relieved of criminal liability if the respective outstanding taxes and penalties connected to a crime are paid to the budget.
    - Baker & McKenzie
  • Revised Draft of the Law on Circulation of Medicines Prepared

    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. 
    - Baker & McKenzie
  • Development of anti-insider trading and market manipulation legislation in Russia

    Federal Law of the Russian Federation No. 241-FZ of 30 October 2009, "On Making Amendments to the Criminal Code of the Russian Federation and Article 151 of the Criminal Procedural Code of the Russian Federation" ("Law No. 241") was published on November 3, 2009.
    - Baker & McKenzie

Press releases

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