The Legal 500

Twitter Logo Youtube Circle Icon LinkedIn Icon

VEGAS LEX

52, KOSMODAMIANSKAYA EMBANKMENT, 115054 MOSCOW, RUSSIA
Tel:
Work +7 495 933 0800
Email:
Web:
www.vegaslex.ru
Krasnodar, Moscow, Volgograd

Show all Press releases

VEGAS LEX discusses concession in road industry

May 2017

VEGAS LEX PPP and infrastructure practice has organized a meeting on using concession in the road industry for employees of the Federal Road Agency (Rosavtodor) and the Roads of Russia federal government agency.

On 19 April 2017, the law firm VEGAS LEX hosted an event on the topic “Concession: what we need to know about it for the development of road industry” for the employees of the Federal Road Agency and of the Federal State Institution “Roads of Russia”.

Elena Semyonova, Head of the Federal Road Agency’s Department of Legal Support and Public-Private Partnership Projects, and Ivan Grigorovich, Head of the Federal State Institution “Roads of Russia” addressed the participants with welcome remarks.

Denis Shtirbu, Head of VEGAS LEX PPP and infrastructure practice, explained to the participants in detail the concept of concession and its relevance for the road infrastructure; listed the types of concessions as well as concession objectives for the investor and for the state; spoke about the specifics and advantages of concessions in the road sector; and explained the backbone of the total cost of ownership and disposal theory in relation to road projects.

Olesya Khityanik, Associate of VEGAS LEX PPP and infrastructure practice, explained how to launch the concession and how to verify the feasibility of the investment idea on a concession model. In particular, the associate highlighted the key features of a concession, the difference between launching the project as a private concession initiative or a competition; and explained which projects may not be recognized as concessions.

Irina Dolgikh, Senior associate of VEGAS LEX PPP and infrastructure practice, presented a step-by-step algorithm for developing a concession, explaining why this algorithm is necessary and what its substance is; discussed the organizational and legal model of a concession project, the project risks and the ways to identify and manage them. The participants also learnt about the contract model of a project: how to prepare a draft decision on concluding a concession agreement and draw up its terms and conditions. Alexey Kharlamov, Senior analyst at InfraONE, added information on the types of funding sources for a concession road project and the return on investment.

Stanislav Kochev, Senior analyst at InfraONE, and Irina Dolgikh spoke about difficulties in structuring the payment mechanism for the project, considering the variability of concession terms and budget legislation requirements, administering the concession grantor's payment and the capital grant, and also taking into account the new FAS Russia risks.

At the end of the event, Dmitry Pitskov, Associate of VEGAS LEX PPP and infrastructure practice, and Stanislav Kochev spoke about the concession grantor’s control over the implementation of the agreement: how the control affects the effectiveness of the project implementation, its development and evolution; the balance of control over the project and supervision of fulfillment of the concessionaire's obligations; and the principles and instruments of the concession grantor’s control.

***

For more information on VEGAS LEX’s services in the area of public-private partnership, please click here.

Legal Developments by:
VEGAS LEX

  • Information law for company participants – the search for a balance of interests

    At the present time, in various legal relationships there exists the acute problem of observing a balance of interests concerning the parties involved in these legal relationships, their legal rights, and their mutual economic needs. Judicial practice, when considering disputes between these kinds of parties, takes into consideration not only the formal requirements of legislation, but also the real economic and legal goals and interests of the participants.
    - Vegas Lex Law Firm

Legal Developments in Russia

Legal Developments and updates from the leading lawyers in each jurisdiction. To contribute, send an email request to
  • The coming into force of the legislative package on the second stage of "Capital amnisty"

    On 19th February 2018, a legislative package on the extension of the tax capital amnesty and the tax-free liquidation of foreign companies came into force.
  • No More Linked In Russia?

    One of the biggest and most popular Internet companies, LinkedIn, has become the first target of the recent Russian data localization law. The legislation requires businesses operating online to keep Russian Internet users’ data on servers located within Russia. Read more...
  • New standards on the unjustified tax benefit included in the tax code

    The Federal Tax Service of Russia issued Letter â„– CA-4-7/ 6152 @ of 16.08.2017, in which it clarified to its subordinate tax authorities the application of new Art. 54.1 of the Tax Code of the Russian Federation "Limits on the Exercise of Rights in Calculating the Tax Base and (or) the Amount of Tax, Levy, Insurance Contributions", which was included in the Tax Code of the Russian Federation by Federal Law â„– 163-FZ of 18.07.2017.
  • Information law for company participants – the search for a balance of interests

    At the present time, in various legal relationships there exists the acute problem of observing a balance of interests concerning the parties involved in these legal relationships, their legal rights, and their mutual economic needs. Judicial practice, when considering disputes between these kinds of parties, takes into consideration not only the formal requirements of legislation, but also the real economic and legal goals and interests of the participants.
  • What businessmen should know about legislative changes with major and interested transactions?

    It is well known that before making significant managerial decisions, the general director must obtain approval from the shareholders or the board of directors. Apart from that, if a director is personally interested in entering into a transaction, approval is also required to proceed with the transaction. In the absence of such an approval, the transaction can be challenged and, in certain circumstances, invalidated. In order to minimize such risks and to eliminate legal uncertainty for the parties to the transaction, the rules governing major transactions and interested transactions must be sufficiently clear. Previously, however, the application of these rules was associated with a large number of controversial legal issues, which were finally solved as a result of the legislative amendments, which will enter into force on January 1, 2017. According to the new amendments, the distinction between major and non-major transactions has been delineated more clearly, parties have been allowed more flexibility in relation to approving transactions, the burdensome obligation to obtain prior approval of interested transactions has been abrogated, and finally the procedure for challenging transactions in question has been made much more complex. Overall, the changes should have a positive influence on business, as they contribute to the establishment of firm legal certainty in this area of the law. 
  • A Lessee’s Dream: the Drastic Devaluation of the Russian Currency Has Triggered New Discussions of

    The rent for leases, especially those in downtown Moscow and other large cities, is often based on the foreign currency exchange rate, which has recently increased almost threefold. Many businesses have been taken aback by this consequence of the economic crisis. Some of them have been put on verge of bankruptcy because of the increased rent and were forced to seek remedies in courts.
  • Amendments to Part IV of the Russian Civil Code in 2015

    Author: Valentina Orlova, Head of Intellectual Property and Trademarks Practice, Pepeliaev Group
  • Parallel Import of Medicines: High Time or the Wrong Time?

    Authors: Sergey Klimenko, Head of Life Sciences Group; Yuri Yahin, Head of IP Group, Pepeliaev Group
  • A Look at Russia's Antimonopoly Legislation

    Elena Sokolovskaya, Head of Antimonopoly Regulation Group, Pepeliaev Group The main areas covered by Russian antimonopoly legislation are prohibition of the abuse of a dominant position, regulation of prohibited agreements, antimonopoly requirements for bidding, merger control, and prohibition of unfair competition. In recent years more attention has been paid to the development of Russian antimonopoly legislation. For this purpose, the State Duma of the Russian Federation (the lower chamber of Russia's parliament) is considering draft measures billed as the 'Fourth Antimonopoly Package'. This comprises amendments to Law No. 135-FZ 'On Protecting Competition' (the "Law on Competition") as well as to the Russian Administrative Code. The measures have already been passed in the first reading and are expected to make it onto the statute book before the end of 2015.
  • A NEW DEVELOPMENT IN CRIMINAL LIABILITY FOR RESTRICTING COMPETITION

    Pepeliaev Group Advises of Amendments to Article 178 of the Russian Criminal Code to Decriminalise Certain Offences and Introduce a New Condition for being Released from Criminal Liability for Restricting Competition