CEE Legal Matters

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  • Striking Serbia: A Buzz Interview with Igor Zivkovski of Schoenherr

    The recent 30-day lawyer strike has sent ripples across Serbia’s legal and business environment, disrupting key judicial and administrative functions and raising concerns about prolonged instability. Schoenherr Partner Igor Zivkovski discusses the strike’s impact, investor sentiment, as well as a promising corporate bond program, and the evolving regulatory framework as Serbia navigates a period of uncertainty.

    “The strike has disrupted the entire legal and business ecosystem, creating uncertainty in the market,” Zivkovski begins. “It affects representation before public bodies, courts, and notaries, which is a major component of legal work in Serbia. While client advisory and transactional work continue, many lawyers rely on court representation for their livelihood, and the prolonged disruption puts their financial stability at risk,” he explains.

    This disruption follows an earlier suspension of work in January, a move that garnered significant support from the Bar Association,” Zivkovski adds. “By backing the protest movement, the Bar Association has emphasized the need to address long-standing challenges within the legal system, reflecting the profession’s broader commitment to meaningful reforms.”

    As for public opinion, Zivkovski goes on to say that some support the ongoing movement while others are frustrated by the delays. “Regardless, it is clear that the next steps taken by both the government and the legal community will be crucial. This moment presents an opportunity for meaningful change, but if the issues remain unresolved, we could face prolonged instability.”

    Focusing on how this uncertainty impacts foreign investment, Zivkovski says that Serbia continues to attract foreign investors, primarily due to competitive business costs, strategic location, and overall ease of doing business. However, “the ongoing administrative and judicial challenges have drawn investors’ attention to the broader political and economic landscape. While the investment climate remains stable, ensuring predictability and transparency will be important for maintaining Serbia’s attractiveness for future investments.” Zivkovski believes that the way systemic issues are addressed in the coming months will be key to maintaining investor confidence. 

    Aside from the strike, Zivkovski underlines a promising initiative on the part of the Ministry of Finance – the corporate bond issuance program. “The program aims to stimulate companies to issue corporate bonds by covering a portion of the costs and providing legal and technical support. The first issuance of these green corporate bonds is scheduled for March and has already been approved by the Serbian Securities Commission. According to the Ministry of Finance, nine more companies are preparing to issue bonds under the same framework,” he reports. “This initiative is diverse, transparent, and efficient, offering long-term economic benefits to companies, investors, and the broader Serbian economy. If successfully executed, the program could enhance liquidity, improve access to capital, and promote stronger corporate governance practices,” Zivkovski outlines.  

    Finally, Zivkovski reports that there are no significant legislative changes in motion. “Given the current political situation and the absence of a fully functional government following the Prime Minister’s resignation in late January, we are in a wait-and-see mode.” Until a new government is in place and operational, Zivkovski indicates that it is unlikely that any major legislative initiatives will take shape. “The next few months will be crucial in determining how the political landscape evolves and what legislative priorities emerge,” he concludes.

  • Cobalt Advises Coffee Address Holding on EUR 5 Million Bond Placement

    Cobalt has advised Coffee Address Holding on raising EUR 5 million in a private bond placement, to support its growth strategy, with Signet Bank as the arranger.

    Coffee Address Holding is a coffee solutions provider in the Baltics.

    According to Cobalt, the bond issue attracted significant interest, with total demand reaching EUR 9.2 million – an oversubscription of 84% – from 37 investors, of which institutional investors accounted for 61% and private investors 39%. The bonds have a three-year maturity and carry a coupon rate of 8.50%.

    The Cobalt team included Partner Edgars Lodzins and Senior Associate Krisjanis Buss.

  • EU’s Clean Industrial Deal: Merging Climate Goals with Competitiveness

    On 26 February 2025, the European Commission (EC) unveiled the Clean Industrial Deal (CID), a comprehensive strategy aimed at enhancing the competitiveness and resilience of European industry while accelerating decarbonisation. In response to high energy costs and increasing global competition, the CID positions decarbonisation as a key driver of growth, ensuring that Europe remains a hub for industrial innovation and production. By reducing bureaucratic hurdles, promoting clean technology and securing financing for the green transition, the initiative strengthens critical sectors such as energy-intensive industries and clean tech.

    Access to affordable energy

    Ensuring access to affordable energy is a fundamental pillar of the CID. According to the EC, structural inefficiencies in the energy market, including inadequate grid infrastructure and limited system integration, contribute to elevated costs. To address these challenges, the EU aims to accelerate electrification, enhance energy efficiency and complete the internal energy market through stronger interconnections. The newly adopted Action Plan for Affordable Energy introduces measures to lower energy costs for businesses and households while advancing structural reforms. Key initiatives include financial incentives for clean energy production, improved regulatory frameworks, and increased digitalisation of energy systems to enhance grid management and flexibility.

    A central focus of the plan is to lower electricity costs by introducing tariff methodologies that support flexible grid usage, expanding Power Purchase Agreements (PPAs) and implementing Contracts for Difference. The European Investment Bank will launch a EUR 500m pilot programme to counter-guarantee corporate PPAs, ensuring long-term energy security for industrial users. Additionally, the EU will streamline permitting processes for renewable energy projects via the upcoming Industrial Decarbonisation Accelerator Act (IDAA) (including tacit approvals in so-called acceleration areas) and introduce a European Grid Package to strengthen infrastructure and support Member States in decoupling the translation of gas into electricity prices. Measures will also be taken to ensure a well-functioning gas market, preventing price manipulation and improving regulatory oversight by aligning and strengthening MiFID/REMIT.

    Lead markets: boosting clean supply and demand

    The CID aims to create strong lead markets for European clean technologies and decarbonised products, ensuring a solid business case for investment in sustainable industries. Measures such as the implementation of the Industrial Carbon Management Strategy will support the creation of a market for captured carbon, ensuring its integration into a broader range of products and facilitating permanent carbon removals.

    Public and private procurement policies will be key drivers of demand, with the IDAA introducing sustainability and resilience criteria. Following the same line, the EC plans to revise the EU’s Public Procurement Framework in 2026, integrating non-price criteria to prioritise sustainability and European production. A voluntary carbon intensity label for industrial products will be developed, starting with steel in 2025, ensuring transparency and enabling targeted incentives.

    Moreover, to accelerate the decarbonisation of the energy system, the EC will adopt the delegated act on low carbon hydrogen in Q1 2025, clarifying the rules for producing low carbon hydrogen. Beyond that, the EC will launch a third call under the European Hydrogen Bank in Q3 2025 with a budget of up to EUR 1bln and a Hydrogen Mechanism in Q2 2025 linking participants with financing.

    Public and private investments

    According to the EC, the clean transition of the EU economy requires significant investment. Mobilising private capital will be crucial, necessitating long-term regulatory stability, public incentives and effective policy coordination. Building on the EU budget’s role in supporting the Green Deal, the next Multi-annual Financial Framework (MFF) is determined to play a key role, with the planned Competitiveness Fund streamlining access to funding and prioritising high-impact projects such as clean tech and industrial decarbonisation. To provide immediate capital, the CID will mobilise over EUR 100bln, including an additional EUR 1bln in guarantees under the current MFF. The EU will also enhance financing tools, such as the Innovation Fund and the yet to be proposed Industrial Decarbonisation Bank, to maximise emission reductions and attract private investment. Additionally, the new Clean Industrial Deal State Aid Framework plans on simplifying approval processes and offering long-term predictability for sustainable projects, while tax incentives would encourage businesses to invest in decarbonisation.

    Powering the circular economy

    To strengthen Europe’s resource security and reduce reliance on unstable suppliers, the CID plans on strategically procuring raw and secondary materials while prioritising circularity. Key measures are the swift implementation of the Critical Raw Materials Act and the forthcoming Circular Economy Act (2026), which is expected to harmonise markets for secondary materials, improve waste-to-resource conversion, and mandate recycled and bio-based material use. Cooperation through Trans-Regional Circularity Hubs would enhance recycling capacity, while regulatory reviews would support market incentives.

    Global markets and international partnerships

    Clean Trade and Investment Partnerships are set to complement existing Free Trade Agreements, facilitating access to critical resources, clean technologies and investment opportunities. The EC also plans to launch a Trans‑Mediterranean Energy and Clean Tech Cooperation initiative, fostering large-scale renewable energy investments. To enhance carbon pricing and global decarbonisation efforts, the CID envisages refining the Carbon Border Adjustment Mechanism (CBAM), reducing administrative burdens while considering its expansion to additional sectors and emissions.

    Implementation across sectors

    The CID aims to establish a structured dialogue with industries to develop sector-specific transition pathways that guide investment decisions and mobilise capital for a cleaner, more competitive industrial landscape. The Industrial Action Plan for the Automotive Sector, scheduled for adoption on 5 March 2025, and the Steel and Metals Action Plan, set to launch on 4 March 2025, should be mentioned here. Additionally, the Chemicals Industry Package, expected by late 2025, and a Sustainable Transport Investment Plan, aimed at accelerating the shift to renewable and low-carbon fuels while expanding recharging infrastructure, should also be included. Furthermore, a Bioeconomy Strategy will promote bio-based materials to reduce fossil dependencies. The European Ocean Pact will drive innovation in blue clean tech and circular economy practices.

    Key takeaways

    Affordable energy access: Measures such as market reforms, renewable energy expansion and a EUR 500m pilot programme for Power Purchase Agreements (PPAs) should lower energy costs and improve energy security.

    Boosting clean lead markets: Policies like the Industrial Carbon Management Strategy, the Hydrogen Bank expansion and revised public procurement rules should drive demand for sustainable products and technologies.

    Mobilising public and private investment: Over EUR 100bln in immediate funding and streamlined state aid rules should accelerate industrial decarbonisation and innovation, with tax incentives supporting long-term investments.

    Advancing the circular economy: New regulations, including the Critical Raw Materials Act and Circular Economy Act (2026), should enhance recycling, reduce material dependencies and promote sustainable manufacturing.

    Global market integration: Trade partnerships, the Trans-Mediterranean Energy and Clean Tech Cooperation Initiative and a refined Carbon Border Adjustment Mechanism (CBAM) should ensure fair competition and secure critical supply chains.

    Sector-specific transition plans: Tailored strategies for industries such as automotive, steel, chemicals and transport should align industrial transformation with Europe’s climate and economic goals.

    By Bernd Rajal, Partner, and Maximilian Klein, Moritz Ublagger, Patrick Barabas, Associates, Schoenherr

  • (Un)Equal Pay

    The right to equal pay for the same work or work of equal value is one of the fundamental rights of employees, protected by both domestic legislation and international standards. In Montenegro, this right is regulated by the Labor Law, while judicial practice contributes to its interpretation and application. Furthermore, the case law of the Court of Justice of the European Union plays a significant role in shaping the legal framework, providing guidelines for the protection against discrimination in terms of wage equality.

    Legal Framework

    The previous Labor Law that was in force before the adoption of the currently valid Labor Law, provided the principle of equal pay in Article 77, paragraph 2, ensuring that a male or female employee was entitled to equal pay for the same work or work of equal value performed for the employer. This legal provision aimed to protect employees exclusively in cases of gender discrimination. However, Article 99, paragraph 2 of the current Labor Law stipulates that employees are guaranteed equal pay for the same work or work of equal value. Work of equal value is defined as work requiring the same: (i) level of education or professional qualification, (ii) degree of responsibility, (iii) level of skills, (iv) working conditions, and (v) work performance. Although wage disparity is often associated with gender discrimination, it is important to emphasize that the principle of equal pay, as defined in the current Labor Law, is significantly more complex.

    Employees’ Rights in Case of a Violation of the Right to Equal Pay for the Same Work (or Work of Equal Value)

    Pursuant to Article 99, paragraph 3 of the Labor Law, an employee who believes that their right to equal pay for the same work or work of equal value has been violated, has the right to compensation for damages in the amount of the unpaid portion of their salary. This means that the lawsuit would be based on seeking compensation for material damages arising from the employment relationship in the form of the difference between the plaintiff’s salary and the salaries of employees in comparable positions. A lawsuit may also include a request to annul the employer’s decision or agreement that contradicts the principle of equal pay for the same work or work of equal value, in accordance with paragraph 4 of the cited article.

    If discrimination is based on any legally prescribed grounds, which is often the case in practice, the existence of discrimination is examined using the so-called discrimination test. The court will assess whether: (i) there is less favorable treatment towards the person claiming discrimination (e.g., unequal pay), (ii) the different treatment is based on personal characteristics, and (iii) the treatment differs compared to another person or group of persons who do not have those personal characteristics.

    If the employee (plaintiff) provides the court with facts that at least suggest the existence of direct or indirect discrimination, the burden of proving that discrimination did not occur shifts to the employer. 

    Criteria for Determining Work of Equal Value

    Working in the same jobs can be considered work of equal value; however, work of equal value is also considered to be a job of equal importance in different workplaces. The criterion of “equal importance” is assessed based on key elements necessary for performing a specific job, such as the required level of education, job complexity, working conditions, and degree of responsibility. Work skills are considered different if employees possess different training, levels of knowledge, autonomy in work, and experience necessary for particular positions, which directly affects job performance quality. Therefore, when evaluating wage inequality, one of the necessary conditions is that the compared jobs must be comparable, meaning that the work performed in different positions must align in terms of these key elements.

    Court of Justice of the EU issued a ruling on June 26, 2001, in C-381/99 in which it raised questions concerning the principle of equal pay for men and women, regarding the difference in remuneration paid by the employer – a bank – to the claimant and her male colleague. It was decided that, although the two disputed positions were initially considered work of equal value, the claimant’s male colleague performed more significant functions, as he was responsible for important clients and had the authority to enter into binding contractual obligations on behalf of the bank. This authority was not granted to the claimant, who had less contact with clients, which explains why she received a lower salary supplement compared to her male colleague. One of the conclusions reached by the Court of Justice of the EU in this ruling is that when an employer differentiates employees’ pay, they are obliged to justify this difference objectively. Accordingly, a higher degree of responsibility associated with certain positions constitutes an objective criterion for differentiating employees’ salaries.

    A justified difference in wages can also be explained by different working conditions. For example, companies operating a chain of supermarkets may experience higher sales in coastal areas during the summer due to a significant increase in the number of tourists. As a result, employees working on the coast bear a greater degree of responsibility since increased sales volume leads to a higher workload and a greater risk of errors. Since, in such a scenario, employees in different regions perform essentially the same work for the same employer but under significantly different working conditions, an objective criterion for wage differentiation may exist without violating the principle of equal pay. As another example, an employer who has waiters employed in two hotels (one with 3 stars and the other with 5 stars) may justify different salaries based on the different working conditions and the level of service required in these two hotels. On the other hand, the difference in hotel categories would not affect the working conditions of an accountant, meaning that the employer would be obliged to pay accountants in both hotels the same salary, provided that other criteria are met.

    It is important to emphasize that the principle of equal pay for the same work or work of equal value is not merely a matter of fairness but also a legal obligation for employers. Compliance with this principle helps prevent potential disputes with employees and establishes a transparent pay system based on objective criteria. From the employees’ perspective, implementing this principle ensures protection against discrimination and fosters motivation through a sense of fair compensation for their work.

    Given that the burden of proving the justification for wage differences rests with the employer, the need for clear and consistent wage policies is further highlighted. Finally, in the modern business environment, adherence to legal regulations is not just an obligation but also a strategic advantage that contributes to company stability and sustainability, strengthening employee trust and overall market competitiveness.

    By Marija Zivkovic, Partner, and Mina Coguric, Associate, JPM & Partners

  • Freshfields Advises Biotronik on Sale of VI Business to Teleflex

    Freshfields has advised Biotronik Group on an agreement to divest its Vascular Intervention division to Teleflex Incorporated.

    The transaction remains contingent on regulatory approvals.

    Biotronik Group is a medical technology company based in Berlin.

    Teleflex Incorporated is a medical technology provider.

    The Freshfields team included Vienna-based Counsel Lukas Pomaroli as well as further lawyers in Frankfurt, Berlin, Hamburg, Duesseldorf, Munich, Amsterdam, Paris, Brussels, Ho Chi Minh City, Hong Kong, Madrid, Milan, New York City, Shanghai, Tokyo, and Washington.

    Freshfields did not respond to our inquiry on the matter.

  • Linklaters and Ergun Advise Turker Global Madencilik on USD 55 Million Gold Mine Acquisition in Bulgaria

    Linklaters, working with Ergun, has advised Turkerler Holding subsidiary Turker Global Madencilik on a share purchase and option agreement for the acquisition of a gold mine development project in Bulgaria for USD 55 million from Toronto-listed Velocity Minerals and its joint venture partner, Gorubso Kardzhali. Lotz & Company reportedly advised the sellers.

    The Linklaters team included Partner Daniel Cousens, Managing Associate Klaudia Sliwka, Associate Zuzanna Oldfield

    The Ergun team included Partner Lara Sezerler and Associate Melis Kaim.

  • Manuela Iurascu and Raluca Gabor Join Stratulat Albulescu Partnership Ranks

    Stratulat Albulescu has elevated Manuela Iurascu and Raluca Gabor to Partner as part of the firm’s latest promotion round.

    Iurascu’s primary area of focus is real estate. She has been with Stratulat Albulescu since 2021 when she joined as a Managing Associate. Earlier, she worked for Cosma si Asociatii as an Attorney at Law between 2008 and 2021.

    Gabor Heads the Energy practice at Stratulat Albulescu. She has been with the firm since 2022. Earlier, she worked for NNDKP as a Lawyer between 2017 and 2022 and a Managing Associate in 2022. Earlier still, she was a lawyer with Tuca, Zbarcea & Asociatii between 2013 and 2017.

    “We are immensely proud of our colleagues’ professional growth and their unwavering commitment to excellence,” said Managing Partner Silviu Stratulat. “Their promotions are a recognition of their talent, hard work, and invaluable contributions to the firm. We look forward to seeing them continue to thrive and strengthen our team’s expertise in their respective fields.”

  • Harald Strahberger Joins Kinstellar as Partner in Vienna

    Harald Strahberger has joined Kinstellar as Partner in Vienna.

    According to the firm, Strahberger’s addition “strengthens our public law and regulatory capabilities, further enhancing the firm’s expertise in Austria and across the wider Central and Eastern European region.”

    Prior to joining Kinstellar, Strahberger was with Wolf Theiss, first as an Attorney at Law between 2020 and 2022 and then as a Counsel between 2022 and 2025. Earlier, he worked for Heid und Partner as an Attorney at Law between 2019 and 2020, as well as for BPV Hugel as an Attorney at Law between 2017 and 2019, and with EY Law – Pelzmann Gall as an Attorney at Law between 2016 and 2017. Earlier still, he had another stint with BPV Huegel, as an Associate between 2010 and 2015 and an Attorney at Law between 2015 and 2016.

    Kinstellar launched its Vienna office this year, with former Wolf Theiss Partner Horst Ebhardt at its helm (as reported by CEE Legal Matters on January 6, 2025) and the office was joined by Philipp Kapl as Partner shortly thereafter (as reported by CEE Legal Matters on February 7, 2025).

    “We are delighted to welcome Harald to Kinstellar,” said Firm Managing Partner Kristof Ferenczi. “His deep regulatory expertise, particularly in energy and environmental law, combined with his strong public law experience, will be a significant asset to our firm and our clients.”

    “I am excited to join Kinstellar at this essential moment, as the firm sets up its footprint in Austria,” added Strahberger. “Kinstellar’s regional reach and dynamic approach provide an excellent platform for delivering strategic legal counsel in complex regulatory matters. I look forward to contributing to the firm’s growth and working alongside a talented team to support our clients in Austria and the wider region.”

  • Kevin-Paul Deveau Joins Greenberg Traurig as Shareholder

    Former Reed Smith Partner Kevin-Paul Deveau has joined Greenberg Traurig as a Shareholder.

    According to Greenberg Traurig, “bringing extensive experience in private credit, bespoke financing arrangements, and acquisition finance, Deveau regularly advises banks, alternative lenders, asset managers, and borrowers on a diverse range of financing transactions. Alongside his extensive experience in Central and Eastern Europe, his areas of focus include Turkiye, the Middle East, and Africa.”

    Before the move, Deveau was a Partner with Reed Smith between 2018 and 2025. Earlier, he was with Dechert as a Senior Associate between 2015 and 2017 and as a Counsel between 2017 and 2018. Earlier still, he was with Clifford Chance as an Associate between 2007 and 2010, and as a Senior Associate between 2010 and 2015.

    “Kevin-Paul brings a breadth of multijurisdictional legal expertise that plays well to our strengths in global finance,” said Greenberg Traurig Executive Chairman Richard A. Rosenbaum. “With this addition, we reaffirm our commitment to strategically growing our London team, ensuring that we continue to offer top-tier service to clients in the U.K., Europe, the Middle East, and worldwide.”

     “I’m excited to join Greenberg Traurig’s London team and collaborate with colleagues across the firm’s extensive European, Middle East, and global network, and of course, the firm’s unmatched coverage of the United States,” added Deveau. 

    Deveau reflected on his CEE work over the years in our Looking In series, an interview available here.

  • E+H Advises Podero on EUR 5.5 Million Seed Financing Round

    E+H has advised Podero on its EUR 5.5 million seed financing round led by German GreenTech fund Planet A Ventures, with co-investment from Systemiq Capital, and participation from Swedish VC Pale Blue Dot and Austrian VC PUSH Ventures. Dorda reportedly advised Planet A Ventures.

    According to E+H, Podero is a Viennese climatetech and renewable energy startup that is developing software that helps energy suppliers reduce costs on flexible appliances by over 25% and plans to leverage the financing to expand its software, team, and customer base.

    The E+H team included Partner Steve Jeitler and Attorney at Law Susanna Falkenburg.