21.08.2018 Russian Subsidiaries of Foreign Groups of Companies: New Obligations Since 2018

Federal Law No. 340-FZ of 27 November 2017 introduced a number of amendments into the Tax Code of the Russian Federation (the Russian Tax Code) aimed at implementing the provisions on international automatic exchange of information between tax authorities of different countries under the Convention on Mutual Administrative Assistance in Tax Matters, Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information and Multilateral Competent Authority Agreement on the Exchange of Country-by-Country Reports.

21.08.2018 Companies with Foreign Capital Will Be Able to Enjoy Benefits for Small and Medium Business Entities

Currently a Russian subsidiary of a foreign company is not regarded as a small or medium-sized enterprise (hereinafter also SME) in case the foreign participation in its authorized capital exceeds 49%. It means that a de-facto small or medium business entity is not entitled to enjoy the benefits granted to SMEs, i.e. special tax regimes, rare inspections, etc.

03.07.2018 Enforcement and recognition of foreign courts judgments

Mosgo & Partners’ managing partner Oleg Mosgo and associate Maria Belova have prepared an article for the journal “Arbitration practice” (No. 6), which deals with enforcement and recognition of foreign courts judgments.

02.07.2018 The legal fate of arbitration clauses under sanctions

Imposition of sanctions raised a question whether it is reasonable to refer a case to the European arbitration institutes.

28.05.2018 New Rules on Unjustified Tax Benefit

Starting from the early 2000s, the Russian tax authorities have been pursuing the following concept: even unless the law explicitly allows some activities, they can result in violation of law and subsequent additional charge of tax. The classic example is business operations involving shell companies.

25.05.2018 SARIA and Cherkizovo signed a Cooperation Agreement

The German SARIA group has signed a Cooperation Agreement with “Cherkizovo” – the largest meat producer in Russia. The Agreement was signed on the 24 May 2018 during the St. Petersburg International Economic Forum.

25.04.2018 Recognition and enforcement of foreign judgments in Russia

Mosgo & Partners’ managing partner Oleg Mosgo made a report "Recognition and Enforcement of Foreign Judgments in Russia" at the Legal Committee of the Russian-German Chamber of Commerce (AHK) on April 25, 2018

30.03.2018 New Regulation of Sanitary Protection Zones

Regulation of sanitary protection zones (SPZ) in Russia has always been imperfect and obscure. Definition of SPZ, its regime, classifications and regulatory limits are settled in sanitary and epidemiological rules1 (SanPiN).

22.03.2018 Ways to Get Out of a Corporate Conflict (Deadlock)

In practice, shareholders in a limited liability company (LLC) often face situations where they are unable to reach a mutual agreement on company management. As a result, the risk is high of getting into the so-called deadlock, where a deep divergence in the views on further business development between the owner scan block the operations of the company.

What are the ways to get out of a prolonged conflict in a limited liability company and what risks should one anticipate? See the “Mosgo & Partners” newsletter below.

The complete text of the newsletter You can find in the below attached file.

27.12.2017 Mala fide negotiations: Auchan is to pay over 15 mln rubles of damages

The Russian legislation provides that parties should negotiate bona fide. Should they fail to conduct negotiations in good faith, the breaching party is to pay damages. This was in the case Auchan LLC v. Decort LLC, when the latter claimed over RUB 15,6 million (approximately EUR 226 000) of damages resulting from bad faith of the contracting party. Held, Auchan LLC was liable for wrecked negotiations and obligated to pay the whole sum of lost profit.