CEE Legal Matters

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  • Ukraine: GPSR: Updated EU Product Safety Rules – Overhauled Requirements for the Ukrainian Products Heading to the EU Consumer

    On 13 December 2024, the new “Regulation (EU) 2023/988 of the European Parliament and of the Council of 10 May 2023 on General Product Safety” (“GPSR“) came into force.

    The GPSR repeals the General Product Safety Directive (2001) and introduces an updated regime to ensure product safety in light of evolving technologies and means of trade. As a regulation, the GPSR is directly applicable to all EU member states without the need for national transpositions.

    The GPSR generally applies to all consumer products on the EU market, whether new, used, repaired or reconditioned. It is explicitly not applicable to certain product categories regulated by higher safety standards (e.g., medicines, animal products, food and feed). The regulation introduces a new framework of obligations covering general product safety requirements, consumer information, complaints, product incident and recall management.

    Key changes

    The key changes, also applicable to Ukrainian businesses offering goods to EU consumers, are the following: 

    • The GPSR applies to products placed or made available on the EU market. The “made available on the market” also includes consumer products sold online (e.g., via online marketplaces) or via other forms of distant sales (e.g., ordered via phone, post, etc.).
    • Economic operators who must comply with the GPSR are manufacturers (both EU and non-EU), importers, distributors, online retailers and the manufacturer’s representatives in the EU.
    • Any individual or legal entity is subject to the manufacturer’s obligations under the GPSR if they (i) place the product on the EU market under their own name or trademark, or (ii) substantially modify the product.
    • Each non-EU manufacturer must establish an economic operator within the EU to ensure GPSR compliance for imported products and serve as a contact point for market surveillance and incident claim management (“EU Authorized Representative”).
    • Online marketplace providers must comply with the GPSR by cooperating with EU market surveillance authorities (e.g., processing notices within three working days) and taking immediate mitigation actions in regard to the product deemed as non-compliant (e.g., incident management and product recall, etc.).
    • The GPSR foresees specific product labeling obligations, including specific contact details of foreign manufacturers and EU Authorized Representatives. 
    • The penalties for the violation of the GPSR are at the discretion of each EU member state. However, deeming the initial draft proposing a maximum fine of at least a 4% annual turnover, such a fine will be high. A violation may also lead to civil damage compensation claims filed by consumers in various EU member states against all economic operators, including the ones located outside the EU.

    Recommendations 

    Ukrainian businesses exporting consumer products to the EU are recommended to:

    • Reassess and update your internal product assessment procedures, product labeling, representation in the EU and compliance with EU technical standards in light of the GPSR
    • Liaise with your export supply chain partners (e.g., EU importers, distributors, online retailers) and establish a new internal process compliant with the GPSR
    • Implement new procedures for internal communication strategies and consumer/authority response teams to meet all GPSR requirements for a speedy reaction to incident reports, customer complaints and requests and orders from EU market surveillance authorities

    By Ario Dehghani​, Counsel, Volodymyr Stetsenko, Associate, Baker McKenzie

  • Whistleblowing – Romania’s Compliance with EU Directive 2019/1937

    The implementation of EU Directive 2019/1937 has established Romania as part of a broader European trend toward increased transparency and accountability in business practices. For many Romanian companies, especially small and medium-sized enterprises, this shift has introduced a steep learning curve, but also significant opportunities.

    Immediate Impacts

    • On organizational practices: Employers are required to establish and maintain confidential reporting channels and designate officers to handle whistleblowing cases. Failure to do so can lead to hefty finesand reputational damage.
    • On employee behavior: The increased protections are expected to encourage more employees to come forward with complaints, especially concerning unethical practices. This creates a dual-edged sword for companies: while fostering transparency, it also exposes weaknesses in existing governance structures.

    Predictions for 2025

    1. Rise in Whistleblower Reports: The improved protections will likely result in a higher number of reports, particularly from younger employees who are more attuned to issues of corporate ethics and integrity.
    2. Legal Precedents: As more cases are brought to court, we anticipate clearer judicial interpretations of the law, which will guide future compliance strategies.
    3. Third-Party Solutions: Many companies, especially SMEs, may turn to external providers for whistleblowing solutions, from secure digital platforms to outsourced investigation services.
    4. Cross-Border Implications: For multinationals operating in Romania, ensuring compliance across jurisdictions will remain a complex yet necessary challenge.

    Strategic Advice for Employers

    Companies should view whistleblowing mechanisms not as a threat, but as a tool for improving internal processes. By encouraging a culture of transparency and protecting whistleblowers, businesses can build trust and credibility. Training employees and communicating the benefits of these measures is crucial to ensure adoption and effectiveness.

    By Alex Teodorescu, Managing Partner, Teodorescu Partners

  • New Cybersecurity Laws in Hungary

    On December 20, 2024, Hungary has enacted two new cybersecurity laws, namely the Act No. LXIX of 2024 on Hungary’s Cybersecurity (“2024 Cybersecurity Act“), which replaces the former national implementation of the NIS2 Directive, and the Act No. LXXXIV of 2024 on the Resilience of Critical Entities (“The Act on the Resilience of Critical Entities”), re-implementing Directive (EU) 2022/2557 on the resilience of critical entities in Hungary.

    Key Changes and Implications

    1. The 2024 Cybersecurity Act

    The 2024 Cybersecurity Act repeals the 2023 Cybersecurity Act and Act L of 2013 on the Electronic Information Security of State and Municipal Bodies, establishing a unified framework for both public and private sector entities. Lower-level cybersecurity legislation remains unaffected by these changes. The new law will take effect on January 1, 2025.

    Expanded Scope

    The new law broadens its scope to include additional categories of organizations and entities, focusing on the electronic information systems they manage. It applies to administrative bodies such as government committees, metropolitan and county offices, and municipal representative bodies, excluding administrative associations with regulatory authority. The law also extends to state-owned enterprises exceeding medium-sized thresholds and aligns with EU cybersecurity frameworks (NIS1 and NIS2 Directives). The new law shall designate entities as “essential” or “important” based on their services or data processing functions.

    Registration Requirements

    Private sector entities previously registered under the 2023 Cybersecurity Act are included in the new framework and do not need to re-register. However, they must submit a list of EU member states where they provide services by February 15, 2025. Any changes in legal status or exceeding the medium-sized enterprise thresholds must be reported to the relevant supervisory authority.

    Person Responsible for the Security of Electronic Information Systems [„ISO”]

    The new law introduces more detailed requirements for the person responsible for the security of electronic information systems (Information Security Officer – ISO), who must be appointed by the organization’s leader. For private sector entities, this role can only be filled by someone who is legally competent and has a clean criminal record. For public sector entities, the law specifies additional requirements.

    Cybersecurity Risk-Management Measures

    The 2024 Cybersecurity Act retains the classification approach from the 2023 law, requiring organizations to classify systems and data as “basic,” “significant,” or “high” security classes. These classifications must be reviewed and updated every two years or after regulatory changes or incidents. Entities who have already classified their systems under the 2023 Cybersecurity Act do not need to reclassify them under the new law. The new law also broadens the scope of mandatory cybersecurity audits. Audits must occur every two years or as directed by SzTFH, with fees and procedures defined by a forthcoming SzTFH decree. 

    1. The Act on the Resilience of Critical Entities

    This new law aims to enhance [NATO] alliance-related duties and national resilience by protecting essential services, securing supply chains, and ensuring government continuity. In that regard, the Hungarian Government shall designate a general competent authority and a competent authority for the energy sector. The competent authorities’ designation procedures under this law must begin by April 30, 2025, reviewing decisions made under Act CLXVI of 2012, which is repealed. Operators designated under the 2012 Act will remain critical entities until final decisions are made. The first phase of the law takes effect on December 30, 2024, and its material provisions start to apply from January 1, 2025.

    Practical Considerations

    Organizations subject to these laws should:

    1. Review Applicability: Confirm whether they are classified as “essential,” “important,” or “critical” entities under the new laws.
    2. Update Compliance Measures: Ensure cybersecurity risk management measures are aligned with the new requirements and whether the designated ISO complies with the new requirements articulated by the 2024 Cybersecurity Act.
    3. Prepare for Audits: Plan for biennial cybersecurity audits and monitor SzTFH decrees for further procedural details.
    4. Submit Required Information: If currently registered, submit the required list of EU member states where services are provided by February 15, 2025.

    By consolidating and expanding existing frameworks, these laws reinforce Hungary’s cybersecurity landscape and align it more closely with EU standards. Organizations must act promptly to ensure compliance with the new requirements.

    By Tamas Bereczki and Adam Liber, Partners, Provaris

     

  • Trends and the Future Role of Office Managers in the Legal Sector

    Initially, the role of Office Managers in law firms was focused on administrative and organizational tasks, such as managing documentation, coordinating meetings, and ensuring the smooth operation of the office.

    However, with the advancement of technology, high market demands, and changes in the work environment, this role has undergone significant changes. Today, the Office Manager is not just an administrator but a strategic partner contributing to the modernization and improvement of business operations.

    Business Digitalization

    Digitalization has become a key component of modern law firms. Legal process management software, electronic document archives, and data analysis tools enable more efficient work and faster decision-making. Office Managers play a crucial role in implementing these technologies, training employees, and monitoring their usage. These tools streamline administrative work, reduce costs, enhance data security, and enable real-time access to information and data.

    Hybrid Work and Flexible Business Models

    The COVID-19 pandemic accelerated the shift to hybrid work models, where employees combine working from the office and from home. Office Managers now play a key role in organizing and coordinating both work models. They are expected to ensure the smooth operation of all systems, adherence to deadlines, and work discipline, regardless of where employees are located.

    Focus on Human Resources and Team Development

    The role of Office Managers increasingly includes human resource management. In the legal sector, where deadlines are often tight, and pressure is high, they play a key role in maintaining a positive work atmosphere. Organizing team training and workshops has become part of their daily routine. Office Managers also often serve as mediators in resolving conflicts and creating employee retention strategies.

    Environmental Sustainability of Offices

    Environmental awareness, and consequently responsibility, is becoming an increasingly important aspect of business operations, including in law firms. Office Managers initiate projects to reduce paper usage, recycle, and implement sustainable practices, such as using energy-efficient devices.

    Artificial Intelligence and Automation

    Advances in artificial intelligence (AI) offer significant opportunities for automating administrative tasks. Automation frees up time for strategic tasks and enables faster and more precise work. However, with the development of these technologies, ethical issues arise, as well as the need for continuous training to ensure they are used correctly.

    Future Challenges and Opportunities

    The role of the Office Manager will continue to evolve as technology and the legal sector progress. Acquiring new skills and education will be key to success in this role. Office Managers will need to adapt to changes and proactively contribute to the improvement of business operations.

    Conclusion

    Office Managers in the legal sector are transitioning from administrative to strategic roles. With the development of technology, changes in work models, and an increased need for sustainable business practices, this position is becoming increasingly significant for the success of law firms.

    The future presents new challenges but also opportunities for professional growth and development.

    By Katarina Petrovic, Office Manager, PR Legal

  • The National Bank of Ukraine Has Relaxed Some Foreign Currency Restrictions

    On 21 December 2024, a new package of foreign currency (“FX”) easings came into effect. It is aimed at supporting domestic producers and improving the business environment in Ukraine. The amendments, introduced by Resolution No. 155 of the National Bank of Ukraine (the “NBU”) dated 20 December 2024 (“Resolution No. 155”), include the following measures:

    1. New opportunities to purchase precious metals

    Resolution No. 155 allowed legal entities and individual entrepreneurs to buy and sell precious metals without physical delivery with non-cash UAH. However, such transactions are only possible if the following conditions are met:

    • the need for precious metals must be related to business activities
    • business entities must have been engaged in jewellery production before the full-scale invasion
    1. Permission to purchase FX funds by nuclear facility operators

    The NBU has granted nuclear facilities operators the right to purchase FX funds without taking into account the balances of FX funds received no later than 31 October 2024 under a loan agreement with a non-resident lender that is guaranteed by foreign export credit agencies, foreign states, or entities in which foreign states are stakeholders. This amendment aims to ensure the uninterrupted supply of nuclear fuel.

    1. Clarification of the rules for compensation of coupon payments on Eurobonds

    Resolution No. 155 introduces several changes to standardize approaches and ensure equal opportunities for all Ukrainian companies that raised financing through Eurobond issuance to fulfil their obligations.

    In particular, subject to the conditions set by the NBU, companies are now allowed to make transfers to related foreign legal entities to compensate for coupon payments on Eurobonds issued by the lenders of such companies. Importantly, such payments can only be made using the company’s own FX funds, not borrowed ones.

    These changes complement the easing measures introduced earlier this year regarding the payment of dividends for the redemption of Eurobonds, which were covered in detail in the legal alerts dated 12 July 2024 and 10 September 2024.

    The new package of FX easings introduced by the NBU is aimed at supporting businesses in the face of current challenges, creating a favourable investment climate and boosting capital inflows to Ukraine.

    By Roman Stepanenko, Partner, and Kateryna Oliynyk, Counsel, Asters

  • Just in Time for the Holidays: The CEE Legal Matters December 2024 Magazine Is Out Now!

    We may have taken our sweet time with this one – but isn’t that the spirit of the season? Fresh off the glittering CEE Winter Gala in Budapest – where lawyers traded legal briefs for cocktails and celebrated the highs of 2024 – the December issue of CEE Legal Matters is finally here! Whether you’re wrapping presents, baking gingerbread, or just catching your breath amid the holiday buzz, let’s dive into the stories shaping the CEE legal markets as we head into 2025!

    With the December issue of the magazine to carry you over, the CEELM team is taking a short but sweet office shutdown collective break until January 6, 2025. During this well-earned respite, our publishing will be on hold. But don’t worry – we’ve got a neat little mountain of content lined up to keep you engaged while we’re away. It’s also the perfect time to revisit some of our past issues and reflect on what kind of a year it’s been (so far, at least). Rest assured, all the news that breaks during our hiatus will be covered with the same flair and care that the market knows us for as soon as we’re back in action. And don’t forget, the submission deadline for the Deal of the Year awards is shortly after the break – January 10, 2025!

    Subscribers should be receiving their hard copies in a week or two, but no need to wait for the mail to arrive: the online version of the magazine is already available here. With Market Spotlights on Poland and Croatia and an Experts Review section on TMT/IP, the December 11.11 issue includes:

    With the December 2024 issue of the magazine now out, let’s remember what autumn looked like this year: our October 2024 issue has now been moved from behind the paywall and been made available to subscribers and non-subscribers alike (here in e-reader format and here in pdf). With a Market Spotlight on Turkiye and an Experts Review section on Tax, the October issue included:

    Stay abreast of the latest developments and legal news, across CEE. Don’t miss any of the upcoming issues: register for a subscription to the CEE Legal Matters magazine now!

  • White & Case and Schoenherr Advise on TPG Real Estate’s EUR 470 Million Sale of Czech and Slovak Logistics Parks to Blackstone

    White & Case has advised TPG Real Estate on the EUR 470 million sale of CT Real Estate to funds managed by Blackstone. Schoenherr, working with Simpson Thacher & Bartlett, advised Blackstone. Talers reportedly advised TPG Real Estate as well.

    Blackstone is an alternative asset manager with more than USD 1.1 trillion in assets under management.

    Established in 1992, TPG is an alternative asset manager with USD 239 billion in assets under management.

    CTRE is a portfolio of ten logistics parks located in the Czech Republic and Slovakia. According to White & Case, CTRE’s portfolio, which initially began in 2019 with a EUR 90 million investment in partnership with local landlord Contera, has since quadrupled to approximately 500,000 square meters of strategically located logistics facilities. 

    The White & Case team included Partners Petr Panek, Vaclav Kubr, and Jan Linda, Local Partner Karel Petrzela, Counsels Magda Olysarova and Vladimir Ivanco, and Associates Barbora Vaculova and Katerina Hudeckova.

    The Schoenherr team included Partners Vladimir Cizek, Sona Hekelova, and Michal Lucivjansky, Counsels Otakar Fiala, Zuzana Hnatova, and Peter Devinsky, Senior Attorneys at Law Jiri Marek, Petr Koral, and Jan Kupcik, Attorneys at Law Sebastian Speta, Kristyna Zmatlikova, Pavel Bederka, Katerina Leheckova, Natalie Dubska, Karolina Hlavinkova, Ales Prochazka, Jan Farbiak, and Tomas Silhanek, and Associates Marek Fuchs, Matus Vajci, Tatana Adamova, and Maria Gabriella Manzone.

    Editor’s Note: After this article was published, Ments informed CEE Legal Matters that it advised Contera, who had a partnership with TPG and, following the transaction, has one with Blackstone. The Ments team included Partner Lukas Michalik, Cousel Martin Kosa, and Associate Simon Hora.

    Moreover, Talers confirmed its participation on behalf of Contera as well. The firm’s team included Partner Jiri Cerny, Attorneys at Law Helena Jurka and Jan Vozar, and Tax Advisor Lenka Rigo.

  • Lambadarios and Machas & Partners Advise on BriQ REIC and ICI REIC Merger

    Lambadarios has advised BriQ REIC on its merger with Intercontinental International REIC. Machas & Partners advised Intercontinental International REIC.

    BriQ REIC is an investment company focusing on the Greek real estate market.

    Intercontinental International REIC is a real estate investment company.

    The Lambadarios team included Managing Partner Constantinos Lambadarios, Partners Melina Katsimi and Prokopis Dimitriadis, Special Counsel Manos Mastromanolis, Counsel Sophia Alonistioti, Senior Associates Margarita Kontogeorgou, Anna Gkogka, and Natalia Kalatzi, and Associates Eirini Lenti and Virginia Kyrlakitsi.

    The Machas & Partners team included Founding Partner Petros Machas and Partner Ioannis Charalampopoulos.

  • Koutalidis Advises Attica Bank on EUR 220 Million Synthetic Securitization

    Koutalidis, working with Clifford Chance, has advised Attica Bank on a EUR 220 million synthetic securitization of its SME and Large Corporate portfolio.

    According to Koutalidis, “this transaction, which marks the first synthetic securitization via a direct issuance of credit linked notes by a Greek bank, enabled Attica Bank to achieve significant risk transfer and reduce its risk-weighted assets by approximately EUR 150 million, through the sale of the mezzanine tranche of the CLN.”

    The Koutalidis team included Partners Effie Papoutsi and George Naskaris.

    Koutalidis did not respond to our inquiry on the matter.

  • Filip & Company and Schoenherr Advise on Mozaik Investments’ Sale of Minority Stake in 5 To Go to Invenio Partners and ACP

    Filip & Company has advised Mozaik Investments on its sale of a minority stake in 5 To Go to Invenio Partners and Accession Capital Partners. Schoenherr advised ACP. Dentons reportedly advised Invenio Partners.

    5 To Go is a Romanian coffee chain founded in Bucharest in 2015.

    Invenio Partners and ACP are investment funds.

    According to Schoenherr, “the transaction will drive 5 To Go’s plans to reach 1,000 locations in Romania and expand into key European markets.”

    The Filip & Company team included Partner Alexandru Birsan Senior Associate Andreea Banica, and Associate Lavinia Cazacu.

    The Schoenherr team included Partners Madalina Neagu and Adina Damaschin and Managing Attorney at Law Alexandra Pop.

    Editor’s Note: After this article was published, Dentons confirmed its involvement on behalf of Invenio Partners. The firm’s team included Budapest-based Partner Rob Irving, Counsel Kamran Pirani, Senior Associate Sebastian Ishiguro, Associates Brigitta Kovacs and Aliz Wulcz, and Trainee Abbey Varns as well as Bucharest-based Partners Loredana Chitu, Tamsyn Mileham, Raul Mihu, and Perry Zizzi, Counsels Argentina Hincu-Rafail and Doru Postelnicu, Senior Associates Simona Moisa and Stefi Ionescu, Associates Alin Roca, Iulia Titirisca, and Alin Dimache, and Paralegals Bogdan Galatanu and Stefan Sundere.