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  • Denys Medvediev Makes Partner at Redcliffe Partners

    Former Counsel Denys Medvediev has been promoted to Partner at Redcliffe Partners. The same promotion round also saw Kateryna Zheltova promoted to Senior Associate.

    Medvediev’s core focus is antitrust law and international trade. He has been with the firm since 2020 when he joined as an Associate. He was promoted to Senior Associate that same year and to Counsel in 2023. Earlier, he was an Associate with Aequo between 2018 and 2020. Earlier still, he was with Asters as a Junior Associate between 2014 and 2016 and as an Associate between 2016 and 2018.

    “Congratulations to Denys and Kateryna on this significant milestone in their careers. We wish them immense success and look forward to their continued professional development in 2025 and beyond,” stated a Redcliffe Partners press release.

  • Piotr Zawislak Joins Norton Rose Fulbright as Consultant

    Former Hogan Lovells Partner Piotr Zawislak has joined Norton Rose Fulbright as a consultant in the firm’s banking and finance practice. Joining with Zawislak is Associate Julia Pycka.

    According to Norton Rose Fulbright, Zawislak, who previously led the Warsaw-based banking and finance team at Hogan Lovells, specializes in debt capital markets, particularly asset-backed securitizations and structured debt securities. Hogan Lovells announced it was shutting down its Warsaw office last year (as reported by CEE Legal Matters on September 20, 2024).

    “Julia and I are delighted to be joining Norton Rose Fulbright,” Zawislak commented. “We will work alongside the firm’s already well-established debt capital markets practice to further develop and focus on securitization. Securitizations are an increasingly important part of the financial and capital markets, and their growing number in Poland only confirms this.”

  • Kosovo Introduces Law No. 08/L-265: A Significant Step for Beneficial Ownership Transparency

    Kosovo has recently adopted Law No. 08/L-265 on the Register of Beneficial Owners, a key piece of legislation aimed at enhancing transparency and preventing financial crimes. Officially published on November 22, 2024, in the Official Gazette of Kosovo, this law not only addresses regulatory gaps but also lays the foundation for a transparent and trustworthy business environment in Kosovo, aligning it with the practices of European Union member states. 

    Law No. 08/L-265 introduces a Central Register of Beneficial Owners, creating an accessible and transparent database for information on individuals who ultimately control or benefit from legal entities. The main objectives of the law include:  

    • Transparency: The law requires businesses to disclose their ultimate beneficial owners (UBOs). This requirement aims to provide clear and accessible data on ownership and control, eliminating the possibility of concealing the true decision-makers behind legal entities.
    • Compliance with EU Standards: By integrating elements from Directive (EU) 2015/849, the law aligns Kosovo’s regulatory framework with European Union standards on anti-money laundering (AML) and combating the financing of terrorism.
    • Prevention of Financial Abuse: Through mandatory ownership disclosure, the law seeks to deter and address financial abuses such as money laundering, tax evasion, corruption, and other illicit activities.
    • Accountability: The law imposes strict penalties for non-compliance, emphasizing its mandatory nature. This creates a deterrent effect while reinforcing accountability among entities and their stakeholders.

    The law applies to a wide range of entities operating in Kosovo, ensuring a comprehensive approach to ownership transparency. These include: 

    • Corporate Entities: Limited liability companies (LLCs), joint-stock companies, and partnerships.
    • Foreign Companies: Branches and representative offices of international businesses.
    • NGOs and Trusts: Non-governmental organizations, foundations, and similar entities.
    • Investors: Legal persons or individuals holding immovable property or investments in Kosovo.

    Exemptions: Sole proprietorships, political parties, and religious organizations are not subject to this law.  

    Key Obligations for Businesses 

    To meet the requirements of the law, businesses must fulfill the following obligations:  

    1. Disclosure of Ownership Details

    Entities are required to submit comprehensive information about their UBOs, including: 

    • Full name and identification details.
    • Percentage of ownership or voting rights.
    • Method of control, whether direct or indirect.
    1. Updating Registers

    Entities must notify the Kosovo Business Registration Agency (ARBK) of any changes in ownership within 30 days. This ensures the Register reflects accurate and up-to-date data. 

    1. Ensuring Accuracy

    Businesses are responsible for verifying the accuracy of all submitted information, maintaining a high standard of data integrity. Failure to comply with these obligations may lead to administrative penalties, including fines and suspension of services by ARBK. 

    The law balances transparency with privacy, clearly defining access rules: 

    • Unrestricted Access: Government agencies, such as the Financial Intelligence Unit, have full access to the Register for monitoring and enforcement purposes.
    • Restricted Public Access: Members of the public may access certain data if they demonstrate a legitimate interest, ensuring that sensitive personal information is adequately protected.

    Businesses operating in Kosovo must adapt quickly to these changes. The law introduces immediate compliance requirements and ongoing obligations to maintain accurate records. Non-compliance not only risks penalties but could also harm reputations in an increasingly transparent global business environment. 

    The Kosovo Business Registration Agency (ARBK) is tasked with managing the Register. Obliged entities that fail to comply will face penalties, which may include fines ranging from €500 to €5,000 for entities and up to €1,000 for individuals, as well as suspension of services for continued non-compliance. 

    This legislation complements broader reforms in Kosovo’s legal landscape, such as the proposed Law on Business Organizations, which focuses on digitalization and improved corporate governance. Together, these laës enhance Kosovo’s business environment, signaling its readiness to integrate into the global economic community.  

    Law No. 08/L-265 is more than a compliance measure—it is a milestone in Kosovo’s journey toward becoming a transparent and responsible jurisdiction for international and domestic businesses. By aligning with EU directives and global best practices, the law positions Kosovo as an attractive destination for investment.

    By Sabina Lalaj, Partner, and Majlinda Karaj, Associate, Lalaj & Partners

  • Gulce Saydam Pehlivan Makes Partner at Paksoy

    Paksoy has promoted former Counsel Gulce Saydam Pehlivan to Partner.

    According to Paksoy, Saydam Pehlivan’s primary focus is labor and employment law, compliance and investigations, and corporate and commercial law.

    She has been with the firm since 2013. Earlier, she was an Associate with DLA Piper between 2009 and 2013.

  • Milorad Gajic joins Radovanovic, Stojanovic & Partners as Partner

    Milorad Gajic has joined Radovanovic, Stojanovic & Partners as a Partner and the firm’s new head of the Real Estate and Construction practice group.

    According to RSP, “Milorad brings extensive experience advising clients on complex matters related to both greenfield and brownfield investments, large-scale construction projects, property acquisitions, sales, high value leases, zoning and regulatory compliance, offering clients strategic guidance throughout every stage of their real estate transactions.”

    Before the move, Gajic was an Attorney at Law with Karanovic & Partners between 2017 and 2024. Earlier, he was a Senior lawyer with JPM Partners between 2012 and 2017.

  • Reals and Clifford Chance Advise on Redside’s CZK 5 Billion Sale of Nova Real Estate Fund Portfolio to CMN and Nemo Fund

    Reals has advised Redside on the sale of its Nova Real Estate Fund portfolio, comprising 16 retail and office properties in the Czech Republic, to Ceskomoravska Nemovitostni and Nemo Fund. Clifford Chance advised the buyers.

    Redside is an investment company managing client assets worth EUR 500 million.

    Ceskomoravska Nemovitostni is a real estate group specialized in long-term investments in commercial real estate. Nemo Fund is CMN’s specialized fund that invests in premium office spaces.

    According to Reals, the portfolio, valued at approximately CZK 5 billion, represents one of the largest real estate transactions in the Czech market this year.

    In 2023, Reals advised on Redside’s sale of the Baumax DIY store (as reported by CEE Legal Matters on April 20, 2023).

    The Reals team included Partners Miroslav Dudek and Gabriela Spak Porupkova and Attorney at Law Filip Balousek.

    The Clifford Chance team included Partner Emil Holub, Counsels Milan Rakosnik, Tomas Brozek, and Jan Dobry, Senior Associate Josef Lysonek, and Associate Tomas Kubala.

  • Kinstellar Launches Vienna Office with Horst Ebhardt at Helm

    Former Wolf Theiss Partner Horst Ebhardt has joined Kinstellar as a Partner to launch the firm’s new office in Vienna.

    According to Kinstellar, “the Vienna office is a greenfield development, spearheaded by Partner Horst Ebhardt, a renowned Corporate M&A lawyer and one of the most respected names in the CEE market. Horst brings 25 years of experience in private practice, specializing in complex cross-border M&A, privatizations, and restructuring transactions across Austria and the CEE/SEE region.”

    Before joining Kinstellar Ebhardt spent 27 years with Wolf Theiss where he co-headed the firm-wide corporate/M&A team.

    “We are thrilled to announce this important milestone in Kinstellar’s growth journey,” said Firm Managing Partner Kristof Ferenczi. “Our new Vienna office enables us to meet the growing demand from clients across the CEE/SEE region. We look forward to working closely with Horst and the team to build a practice that I am confident will make a significant impact both in the Vienna and the whole CEE/SEE markets.”

    “I am delighted to join such a strong firm and brand as Kinstellar – with its leading and first-class capability across the whole of CEE/SEE, Turkey, and Central Asia,” Ebhardt added. “I look forward to working with clients and new colleagues across all its existing jurisdictions and working together with its outstanding regional M&A team. I am deeply grateful to my previous firm and teams for their support throughout my career, and I am excited for this next chapter.”

  • Closing: MidEuropa’s EUR 1.3 Billion Sale of Profi to Ahold Delhaize Now Closed

    On January 3, 2025, RTPR announced that MidEuropa’s EUR 1.3 billion sale of Profi to Ahold Delhaize (as reported by CEE Legal Matters on November 1, 2024) has now closed.

    According to RTPR, the transaction, valued at approximately EUR 1.3 billion, is the largest-ever private equity deal in Romania as well as the biggest grocery retail deal in Central and Eastern Europe. 

    As previously reported, White & Case and RTPR advised MidEuropa on its EUR 1.3 billion sale of Romania’s Profi supermarket chain to Dutch-Belgian listed retail and wholesale company Ahold Delhaize. CMS and GNP Guia Naghi & Partners advised Ahold Delhaize on the acquisition.

    MidEuropa is a European private equity investor with roots in Central Europe. It has been active for over 20 years, with over EUR 6 billion of assets under management and 45 businesses backed to date.

    According to the seller’s press release, Profi is Romania’s leading convenience and proximity supermarket chain operating a network of more than 1,650 stores. It employs more than 28,000 people in Romania and generated revenues of more than EUR 2.5 billion in the twelve months ending June 2023. “Following MidEuropa’s acquisition of Profi in 2017, the company has become the largest supermarket chain in Romania (based on number of stores) and one of the fastest-growing retailers in the country, successfully adding over 1,100 stores and increasing sales by more than 3.3 times.”

    Ahold Delhaize is a food retail group active in both supermarkets and e-commerce. It serves over 60 million customers in the US, Europe, and Indonesia. In Romania, Ahold Delhaize already operates a nationwide network of 969 stores, under the Mega Image brand.

    “The sale of Profi is our second over EUR 1 billion exit in the retail sector in Central Europe,” MidEuropa Managing Partner Robert Knorr commented. “A very important exit for the Central European region, which continues to be home to some of the most compelling growth companies in Europe.”

    Profi was initially sold by its founder to Enterprise Investors, back in 2009 when it operated 65 stores, for EUR 66 million. Enterprise Investors then sold the Romanian supermarket chain to Mid Europa Partners in 2016 – when it operated 484 stores – for EUR 533 million. RTPR also advised on the 2016 transaction (as reported by CEE Legal Matters on November 24, 2016).

    The White & Case team was led by London-based Partners Ken Barry and Will Summers and included Prague-based Partner Jonathan Weinberg and other lawyers from the firm’s London, Washington, and Helsinki offices.

    The RTPR team was led by Managing Partner Costin Taracila, Partner Roxana Ionescu, and Managing Associate Marina Fecheta-Giurgica and included at least ten other RTPR professionals.

    The CMS team was led by Romania-based Managing Partner Horea Popescu, Partner Roxana Fratila, and Counsels Claudia Nagy and Raluca Ionescu, and UK-based Partner Eva Talmacsi and Senior Associate Kristin Shelley, working with more than 20 other lawyers from the firm’s Romanian and UK offices.

    The GNP Guia Naghi & Partners team was led by Managing Partner Manuela Guia and Partner Otilia Vilcu and included Senior Associate Patricia Avramescu and Associates Bianca Cernitoiu and Victor Stefan.

  • NBU Provides Further Relief for Ukrainian Corporate Issuers To Repay Eurobonds Obligations

    With effect from 21 December 2024, the National Bank of Ukraine (“NBU”) introduced new exemptions from the moratorium on foreign currency cross-border transfers. Notably, these changes broaden the scope of existing exemption for Ukrainian corporate issuers permitting to make payments in connection with Eurobond-related obligations, described in our earlier legal alert.

    The NBU allowed Ukrainian companies to repatriate dividends to their foreign participants/shareholders, subject to the following conditions:

    • the Ukrainian company is the borrower under a loan agreement with a foreign Eurobonds issuer;
    • a loan from the foreign issuer to the Ukrainian company was funded from Eurobonds issuance proceeds;
    • Eurobonds are admitted to trading on a foreign stock exchange and are in circulation as of 10 July 2024;
    • the foreign currency transfer for dividends repatriation is limited to the amount of coupon payments on Eurobonds that have already been made to the bondholders during the period from 24 February 2022 until 30 April 2024, minus any foreign currency transfers made by the Ukrainian company from its Ukrainian bank account to the foreign Eurobonds issuer for purposes of interest payments under the loan agreement since 4 May 2024;
    • payments must be made exclusively with the Ukrainian company’s own foreign currency funds;
    • no export transactions of the Ukrainian company remain subject to currency control monitoring as a result of such Ukrainian company’s failure to comply with maximum settlement deadlines that have passed within the last 12 calendar months; and
    • the Ukrainian company must provide the servicing bank with all necessary supporting documents and information to evidence compliance with the above requirements.

    Concurrently, the NBU also enacted other exemptions, such as lifting the ban on the sale and purchase of banking metals without physical delivery using non-cash UAH. Such exemption applies to Ukrainian businesses in the jewelry production field that started their operations before 23 February 2022.

    By Glib Bondar, Senior Partner, Avellum

  • Abuse of Sick Leave – (Im)possible Termination

    Although abuse of the right to a leave of absence due to temporary impairment for work (sick leave abuse) is explicitly stated in the Labor Law as grounds for termination, in practice, terminating an employment contract on this basis is very difficult, even when abuse is obvious. Beyond the fact that the concept of sick leave abuse is not legally defined, employers face a host of formal and factual obstacles when attempting to determine abuse, resulting in losses for both employers and the state, which often bears the cost in cases of long-term sick leaves.

    Of course, it is understandable and justified to protect employees’ rights and interests, prevent pressure, intrusion into privacy or arbitrary questioning of the validity of sick leave by employers. On the other hand, legal certainty dictates the need for a clear legal pathway to prove and penalize sick leave abuse.

    Namely, to protect employees’ privacy, employers no longer have information about the code of illness causing the employee’s work incapacity, which is understandable. However, the employer cannot obtain any information from the National Health Insurance Fund as to whether the employee is still on sick leave or not. By law, the employee is only required to submit an initial medical certificate to the employer to start the sick leave, but not the subsequent documentation that extends it (known as in Serbian “doznake” or follow-up certificates). Generally, it is in employees’ interest to submit these during sick leave in order to receive compensation, but this is not always guaranteed.

    In other words, an employer can obtain all information about the employee’s illness only directly from the employee. The first potential issue for the employer is determining whether the employee is indeed on sick leave (or is unjustifiably absent from work) if the employee does not submit the follow-up certificate or report from the medical board extending the sick leave.

    There is also an issue when there are indications that the sick leave was granted without adequate basis or is being abused (defined in legal practice as using it contrary to its intended purpose, behaving in ways inconsistent with the diagnosis and prescribed therapy, or hindering recovery). According to the Labor Law and Health Insurance Law, employers have the following legal recourse in such cases:

    • requesting a reassessment of temporary work incapacity through the National Health Insurance Fund;
    • referring the employee to a medical center chosen by the employer to determine sick leave abuse; and
    • determining sick leave abuse in accordance with internal company policy

    The first two options offer limited prospects for resolving this issue, as, in practice, doctors tasked with determining the invalidity or abuse of sick leave generally do not contradict their colleagues who initially approved the leave for employees. Additionally, doctors assessing sick leave abuse are bound by the medical documentation that served as the basis for granting the leave and by their examination of the employee as a patient. Depending on the diagnosis, employees can often cite various health problems or symptoms that are nearly impossible to objectively verify (e.g., anxiety, fatigue, drowsiness, workplace stress—commonly referred to as burnout, etc.). Therefore, it is unlikely that an employer will be able to establish sick leave abuse through medical evaluations. However, these procedures can still have a preventive effect in certain situations by discouraging future abuse.

    As a last resort, the employer may attempt to establish sick leave abuse internally, based on the general act or company policy. It is advisable for company policy to include provisions that regulate the process of determining sick leave abuse (procedure, responsible entity, etc.) or to add such provisions if they are absent. Although not explicitly outlined in the law, this could involve forming a special committee to investigate the circumstances of sick leave abuse or hiring third parties (e.g., private investigators) to gather information, though judicial practice on this engagement is yet to be clearly defined. However, even all findings from such investigations, even if unequivocally pointing to behavior incompatible with sick leave, may not necessarily be accepted as proof of abuse by the court.

    For instance, according to legal precedents, if it is established that an employee appears in public places, travels, and generally behaves as if they are not sick, this may not be considered as sick leave abuse if the medical report does not explicitly prescribe rest or bed rest, or if this behavior does not prevent recovery. While this perspective has some basis, it places an unjustifiably high burden of proof on the employer, given that certain behaviors are clearly incompatible with sick leave regardless of the diagnosis or prescribed therapy. Additionally, according to the case law, even if an employee performs certain tasks during sick leave, whether the same or different from those for the employer (e.g., as a contractor or through external engagements), this may not constitute abuse if it is not proven that it hinders recovery.

    As the employer does not have access to the employee’s medical documentation and cannot know the reason for the sick leave or the prescribed treatment, they are not in a position to prove that specific behaviors impede recovery, particularly with illnesses related to stress or neuroses, even when certain behaviors are clearly incompatible with sick leave.

    Due to the lack of information and challenges in proving sick leave abuse, employers always face a certain risk when initiating termination proceedings on this basis.

    Therefore, we recommend that each potential case of sick leave abuse be carefully analyzed with a mandatory review of current case law and that such grounds for termination be established primarily through internal procedures, aligned with the employer’s general act, which should contain appropriate procedural provisions (while not excluding proceedings before medical bodies in certain cases). In cases of termination based on sick leave abuse, a certain level of risk of subsequent legal challenges cannot be practically excluded (even when all circumstances strongly suggest abuse). This risk is sometimes significant, considering the potential length of court proceedings and the possible consequences.

    This text is written for informational purposes only and does not constitute legal advice. We are at your disposal for any additional information.

    By Milorad Glavan, Partner, DNVG Attorneys