Russian counter measures : recent developments (update June 1st, 2022)

 

Russia adopted a series of counter measures in May.

The President issued a decree establishing a special procedure for performance of obligations towards foreign intellectual property owners. The decree targets a range of IP owners establishing that the payments are to be made in roubles to a special account in an authorized Russian bank. The decree allows making payments to foreign bank accounts of the IP owner only after authorization of a special Governmental Commission.

The Government determined a list of foreign entities targeted by sanctions. The list was prepared pursuant to a presidential decree No. 252 dated 3 May 2022. For more details on this decree, please refer to our Legal Alert dated 3 May 2022.

Additionally, draft law on external administration of foreign companies was adopted in the first reading. Please refer to our Legal Alert dated 13 April 2022 for more details on this legal initiative.

Draft law on criminalization of enforcement of sanctions might be considered in the first reading before 9 June 2022, according to the information published on the official website of the State Duma. Please refer to our Legal Alert dated 7 April 2022 for more details on this legal initiative.

Russian counter measures

  1. President issued decree on temporary procedure of execution of obligations towards certain IP owners No. 322 dated 27 May 2022.

The new decree establishes restriction on the payment by Russian residents (debtors) of fees (royalties) under license, sub-license, IP management and other contracts related to the use of IP to foreign IP owners.

The decree targets the following IP owners:

►incorporated in a jurisdiction considered as unfriendly by Russia (including France) or are Russian subsidiaries of such foreign IP owners,

►publicly support foreign sanctions against Russia,

►have prohibited the use of such IP in Russia or in relation to certain Russian persons/entities,

►have suspended their activities in Russia,

►have publicly discredited Russian army, or

►have insulted in the Internet Russian state or public interests.

Entities controlled by Russian persons are not targeted in case they disclosed such control to Russian tax authorities.

Royalties and related payments are to be made in RUB to a type “O” bank account opened in a Russian authorized bank. Russian Governmental Commission can authorize the transfer of funds from the bank account of type “O” to the foreign bank account of the IP owner.

The restriction does not apply to:

►Payments not exceeding RUB 100,000.00 that are made by individuals for their private needs,

►Foreign IP owners, which duly perform their IP contracts with Russian residents,

►IP contracts concluded between Russian residents and foreign IP owners on the importation or production of medicines, medical devices, industrial, agricultural and food products in Russia,

►IP contracts concluded between Russian residents and foreign IP owners on the provision of communication services or traffic transmission services,

IP contracts concluded between Russian residents and foreign IP owners on the creation or use in Russia of databases, information systems, data processing centers and software for computers.

2. Government issued a list of persons under sanctions

On 11 May 2022, the Russian Government prepared a list of persons under sanctions.

The list includes:

►Gazprom Germania GmbH

►Astora GmbH

►ZGG – Zarubezhgazneftehim Trading GmbH

►GAZPROM Schweiz AG

►WIEE Hungary Kft.

►WIEE Bulgaria EOOD

►IMUK AG

►WIBG GmbH

►WIEH GmbH

►WINGAS GmbH

►WINGAS UK Ltd

►WINGAS Sales GmbH

►WINGAS Holding GmbH

►Industriekraftwerk Greifs wald GmbH

►VEMEX ENERGO s.r.o.

►WINGAS Benelux s.r.l.

►Gazprom Marketing & Trading Ltd.

►Gazprom Global LNG Ltd.

►Gazprom Marketing & Trading France SAS

►Gazprom Marketing & Trading USA Inc.

►Gazprom Marketing & Trading Switzerland AG

►Gazprom Marketing & Trading Singapore PTE. Ltd.

►Gazprom Marketing & Trading Retail Ltd.

►Gazprom Mex (UK) 1 Ltd.

►Gazprom Mex (UK) 2 Ltd.

►PremiumGas S.p.A.

►VEMEX s.r.o.

►VEMEX ENERGIE a.s.

►WIEE ROMANIA SRL

►EUROPOL GAZ S.A.

The list was adopted pursuant to Presidential Decree No. 252 dated 3 May 2022 “On Special Economic Measures Countering Unfriendly Acts of Certain Foreign States and International Organizations”. As a reminder, the decree establishes the following restrictions:

►Ban for federal and regional governmental bodies, entities and individuals under the Russian jurisdiction to:

+ Perform any actions, including conclusion of foreign trade contracts, with entities and individuals subject to Russian special economic measures. The ban also extends to any engagement with organizations controlled by said targeted persons;

+ Fulfill obligations under executed transactions, including under concluded foreign trade contracts, if such obligations have not been (fully) performed.

►Ban on exportation of products and / or raw materials manufactured and / or extracted on the Russian territory, if such products and / or raw materials are supplied to persons under sanctions or by such persons in favor of third persons.

Proposed legislation

3. Draft law on external administration of foreign companies adopted in the first reading.

On 24 May 2022, the State Duma adopted Draft Law “On External Administration of Companies” in the first reading.

As a reminder, this draft law was introduced as an alternative to an initial, more rigid legal initiative, also known as the nationalization law. This draft law still has certain inconsistencies and unclear provisions that either have to be clarified for further readings in the Duma or will be applied at the discretion of the courts and the specific commission once the initiative becomes law. In particular the draft law primarily targets companies of significant importance for Russian economy but also allows a specific commission to determine a company as significant on a case-by-case basis.

For more information on this draft law, please refer to our legal alert dated 13 April.

We are actively following the developments related to those issues and are fully prepared to advise our clients.

Our last newsletters

Sanctions against Russia. Recent developments.

On 22 February 2022 Russian President Vladimir Putin signed laws ratifying agreements with the Donetsk and Luhansk People’s Republics (DNR and LNR) recognizing them as independent states. On 24 February 2022 President Putin announced a “special military operation” in Ukraine. Sanctions were adopted against Russia further to these actions of Russia (please see our previous […]

Moscow Desk

+

Russian counter measures : recent developments (update May 3, 2022)

Today, the President signed a new order introducing certain restrictions on transactions involving sanctioned persons. The order does not provide for a list of such targeted persons – the Government is to prepare a list within ten days. Moreover, Russia proposed several legal initiatives countering introduced sanctions. Such initiatives include criminal liability for compliance with […]

Paris, Moscow Desk

+

Russian counter measures. Recent developments (13 April updates)

The initial legal initiative on external administration of the foreign companies (also known as the “nationalization draft law”) has been put on hold, according to an information published on 11 April 2022 by Izvestia. 1 Three sources in the Government confirmed that, “since most of the companies only made declarations of suspension or suspended their […]

Moscow Desk

+

Russian counter measures. Recent developments (7 April updates)

Russia has adopted a number of measures in response to sanctions introduced by the US, EU and other states. The measures are mainly established in the presidential and governmental decrees, as well as certain legal initiatives (please refer to Legal Alerts dated 2 March and 11 March for more information on the previously introduced measures). […]

Moscow Desk

+

Sanctions against Russia, recent developments (updated 22 march)

On 22 February 2022 Russian President Vladimir Putin signed laws ratifying agreements with the Donetsk and Luhansk People’s Republics (DNR and LNR) recognizing them as independent states. On 24 February 2022 President Putin announced a “special military operation” in Ukraine. Sanctions were adopted against Russia further to these actions of Russia (please see our legal […]

Moscow Desk

+

Monthly legal update – March 2022

Sommaire : The program of the evacuation of enterprises from the war zones to western Ukraine The extension of deadlines for submission of tax, financial and other reports Organization of employment relations during martial law Amendments to the tax code of Ukraine Certain issues of state registration during martial law On guaranteeing protection of the […]

Kiev

+

Russian counter measures. Recent developments – 03/10/2022

Russia has adopted three rounds of measures in response to sanctions introduced by the US, EU and other states. The measures are mainly established in the presidential decrees, particularly, Decree No. 95 dated 5 March 2022 “On Temporary Procedure for the Discharge of Obligations Towards Certain Foreign Creditors” (please refer to Legal Alert dated 2 […]

Moscow Desk

+

Sanctions against Russia: recent development (March 2nd updates)

On 22 February 2022 Russian President Vladimir Putin signed laws ratifying agreements with the Donetsk and Luhansk People’s Republics (DNR and LNR) recognizing them as independent states. On 24 February 2022 President Putin announced a “special military operation” in Ukraine. Sanctions were adopted against Russia further to these actions of Russia (please see our legal […]

Moscow Desk

+

Sanctions against Russia: recent developments (Februrary 28th updates)

On 22 February 2022 Russian President Vladimir Putin signed laws ratifying agreements with the Donetsk and Luhansk People’s Republics (DNR and LNR) recognizing them as independent states. Sanctions were adopted against Russia further to these actions of Russian President (please see our legal alert on sanctions dated 24 February 2022). Sanctions described below are a […]

Moscow Desk

+

Sanctions against Russia: recent developments – 02/24/2022

On 22 February 2022 Russian President Vladimir Putin signed laws ratifying agreements with the  Donetsk and Luhansk People’s Republics (DNR and LNR) recognizing them as independent  states. Sanctions below were adopted before President Putin announced a “special military operation” in Ukraine on 24 February 2022. We are actively following the developments related to those issues […]

Moscow Desk

+

[FLASH NEWS] Commercial leases: when is an exclusively upward indexation clause divisible?

By a decision of January 12, 2022 n°21-11.169, the 3rd civil chamber of the Court of Cassation consolidates its jurisprudence on indexation clauses deemed not written. The Supreme Court thus considers that the mention of the determining and essential character of the indexation clause in the lessor’s consent is not sufficient to pronounce its indivisibility. […]

Paris | REAL ESTATE

+