Category: Belarus

  • CHSH Belarus Advises Knauf on Indirect Acquisition of Belgips

    CHSH Belarus Advises Knauf on Indirect Acquisition of Belgips

    CHSH Belarus, working alongside lead counsel Beiten Burkhardt, has advised Knauf on the indirect acquisition of Belgips Jsc, a Belarusian major manufacturer of gypsum plasterboards.

    The transaction was structured as a 50% share acquisition in Corporation Volma LLC (Russia), which is a major shareholder of Belgips. The seller of the shares is an unnamed Russian businessman. 

    By means of this acquisition Knauf will invest in the construction of the new manufacturing facility of Belgips and strengthen its market position in Belarus.

    CHSH acted as Belarusian legal counsel to KNAUF, advising on the Belarusian aspects of transaction structuring, the legal due diligence of BELGIPS, the merger control clearance, the shareholders agreement, and corporate governance issues. The firm’s team was led by local Managing Partner Sergei Makarchuk. 

     

  • Revera Advises Zubr Capital Fund I on Investment Into Softline

    Revera Advises Zubr Capital Fund I on Investment Into Softline

    Revera has advised the Zubr Capital Fund I on its investment into Russia’s Softline IT company.

    According to Revera, the firm “conducted complex legal and tax due diligence of the object of the deal and consulted on structuring of the deal, IP transfer, and the protection and minimization of legal risks.”

    The Revera team was led by Associated Partner Helen Mourashko, assisted, Revera reports, by 17 other lawyers from the firm.

     

  • Sorainen Advises Eurotorg on First Ever Corporate Eurobond Issuance by Belarusian Company

    Sorainen Advises Eurotorg on First Ever Corporate Eurobond Issuance by Belarusian Company

    Sorainen Belarus has advised Eurotorg LLC, Belarus’ largest food retailer, on a USD 350 million bond issue for a 5-year term with an annual coupon rate of 8.75% maturing on October 30, 2022. 

    The bonds were issued by, and with limited recourse to, Bonitron Designated Activity Company, for the sole purpose of financing a loan to Eurotorg LLC. The bond issue is the first ever Eurobond placement by a Belarusian corporate issuer. Rating agency Fitch has assigned a B-rating to Eurotorg, citing its “strong business profile, underpinned by the company’s unrivaled position in the Belarusian food retail market, limited entry threat from international chains, solid profitability, and some growth opportunities arising from low penetration of modern retail in the country.”

    Sorainen acted as Belarusian law counsel to Eurotorg, including Belarusian aspects of transaction structuring, transaction documentation. and legal due diligence. The firm’s team was led by Partner Kiryl Apanasevich. 

     

  • The Buzz in Belarus: Interview with Konstantin Mikhel of VMP Vlasova Mikhel & Partners

    The Buzz in Belarus: Interview with Konstantin Mikhel of VMP Vlasova Mikhel & Partners

    According to Konstantin Mikhel, Managing Partner of VMP Vlasova Mikhel & Partners, new decrees, regulations, and changes in the criminal code are just around the corner to ease the lives of businesses.

    “The decree concerning the IT sector, which is already on the President’s table waiting to be signed any day now, is aimed at facilitating the inflow of foreign investments and integrating new technologies and innovations,” Mikhel says. “It will ensure the free flow of capital, lower taxes, establish a visa-free entry regime for investors, and support biotechnology, space technology, artificial intelligence technologies, and unmanned systems for transport. The IT market will be free from a lot of bureaucratic procedures, currency control, and contractual documentation requirements. Plans call for the development of crypto exchange services, the attraction of financing through ICOs, and the use of cryptocurrencies and tokens. It is expected that changes in the legislation will lead to an increase in jobs and attract investment in the country.”

    Mikhel says that many experts agree that, as a result of the decree, “Belarus will stand out as the leading destination for IT.”

    At the same time, according to Mikhel, in order to improve business conditions in the country, President Aleksandr Lukashenko has recently issued a new decree restricting any increase of taxes and prohibiting the introduction of new ones until 2020, with a five-year statute of limitations period for collecting taxes. This decree, Mikhel says, “also reduces significantly the procedures to start new businesses. In the construction field, for example, it won’t be necessary anymore to make a tender in the private sector. Grounds for subsidiary (vicarious) liability are significantly reduced, and the owner and the director of a company may be liable only if the insolvency of the company is caused by their deliberate actions. Sanitation, environmental, and fire safety requirements have been reduced and simplified as well. The business community is happy with the decree, for it will improve business conditions for everyone.” According to the other Presidential Decree the list of licenses for different businesses is significantly shorter as well.

    Finally, in terms of the criminal code, according to the VMP Managing Partner, the Belarusian President has instructed the Government to prepare new regulations concerning sentences for economic crimes: “The current sentences are considered to be too harsh, with a lot of imperative clauses in the legislation. Investors might also feel discouraged by this aspect.”

  • Klim Stashevsky Becomes Partner at Arzinger

    Klim Stashevsky Becomes Partner at Arzinger

    Arzinger has announced that Klim Stashevsky, the head of the firm’s International Trade practice group, has been invited to become a partner of the firm, effective December 1st, 2017. 

    According to Arzinger, “We’ve always believed that the main asset of Arzinger is its legal talents. Klim came to the firm as a student, and worked his way up from a legal assistant to the head of practice. Unlike many law firms in Belarus, we have never cherished a partnership as a closed club, and the path to the partners is available to anyone who is ready to take it.”  

    “This appointment will benefit both the firm and our clients,” said Senior Partner Sergey Mashonsky.  

    Stashevsky has been working at Arzinger since 2011. 

  • Aleinikov & Partners Advise Investors in OneSoil Seed Round

    Aleinikov & Partners Advise Investors in OneSoil Seed Round

    Aleinikov & Partners advised a consortium of investors investing in Belarusian agri-tech startup OneSoil.

    The consortium, which invested USD 500,000 included venture fund Haxus and angel investors Yuri Melnichek and Leonid Lozner. 

    According to Aleinikov & Partners, “OneSoil is developing a platform for precision farming. The platform helps to monitor areas under crops, plan operations, increase yields and, finally, save resources with the help of artificial intelligence. OneSoil uses sensors on agricultural machinery, its own drone (‘Flying Wing’), and a gasoline helicopter, as well as data from space satellites and aerial photography from open sources to collect information about the fields.”

    According to Aleinikov & Partners, “previously, the startup financed the development from its own funds. But with the help of money raised from the investors the development of new solutions in the field of agriculture will pass to a qualitatively new level.”

    The Aleinikov & Partners team included Partner Dmitry Matveyev and Senior Associate Ksana Sidoruk.

  • Legal Status of Software Under IP Laws of Belarus

    As a prominent IT-hub in CEE, Belarus gave life to quite a few players in the international IT arena, including EPAM, Wargaming.net, Viber, MAPS.ME, MSQRD, Prisma, and many, many others. More and more Western software and hardware companies are entering into long-term partnerships or other contractual relationships with Belarusian talent. In this context, the basic principles of Belarusian legal regulations that govern the protection and transfer of IP rights related to software are increasingly important. 

    Computer Programs as Objects of IP Rights

    Software as an object of IP rights falls within the scope of the Copyright and Related Rights Law No. 262-Z dated May 17, 2011. This legal act defines a computer program as a structured-in-an-objective-form set of commands and data intended for use on a computer and other systems and devices for processing, transferring, and storing information, producing computations, receiving audiovisual images, and other results. Included in the definition are documents included in the computer program that describe in detail the functioning of the computer program, including interaction with the user and external components (i.e., an interface). Copyright protection applies to all kinds of computer programs (including operating systems), which can be expressed in any language and in any form, including source code and object code. 

    There is no need to register a computer program and obtain a patent or a certificate of any sort to ensure that the developed software enjoys protection under Belarusian law – copyright is applied to any computer program from the moment of its creation, like any art or literature object. 

    Belarusian copyright law guarantees the author or a copyright holder of a computer program a set of rights, such as the exclusive right to perform or permit installation of a computer program on a computer or other device, and to launch and operate it (the use of functional capabilities incorporated in the computer program), as well as other actions in accordance with Article 16 of the Law No. 262-Z. This law entitles the author or a copyright holder the exclusive right to decide the terms of use of a computer program by any other person. Per Belarusian legislation, the exclusive right to a computer program is valid during the life of the author and fifty years after his/her death.

    Work For Hire and Computer Programs

    There is an assumption in Belarusian law that the exclusive right to a computer program created by an employee is automatically assigned to the employer, unless otherwise provided by the contract between them. The author (employee) is entitled to ask for remuneration for this assignment, which is subject to the mutual consent of both the employee and the employer. From a practical point of view, it is very important to ensure that a particular computer program was created by an employee in the course of fulfillment of their employment duties or under the direct instruction of the employer. This is achieved by including necessary wording both into the employment contract and the duty regulations of each employee involved in software development. The way the developed program is reported to the superiors by the author is also important – thus it is always a good idea to have a special reporting form ready for such cases. 

    If the employer does not start using a program it received the exclusive rights to from the employee within five years from the date of the assignment or does not re-assign the exclusive right to another person, the exclusive rights are automatically transferred back to the author employee, unless otherwise provided by the contract between the employer and the author.

    If the team involved in the development of software is working under civil contract rather than employed it is important to sign a license or IP rights assignment agreement with each team member to ensure a smooth transfer of the exclusive rights to the software.

    And since the majority of US and English law-governed templates are inapplicable for this purpose, it is always a good choice to hire a local advisor to assist you in getting through all the peculiarities of our legal system.

    By Klim Stashevsky, Deputy Director, Arzinger & Partners 

    This Article was originally published in Issue 4.5 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.

  • Revera Advises Mile on Construction of Hypermarket in Belarus

    Revera Advises Mile on Construction of Hypermarket in Belarus

    Revera’s lawyers have advised DIY retail giant Mile on the construction of the biggest do-it-yourself hypermarket in Belarus. 

    The store opened in Minsk on July 30, 2017.

    According to Mile, “the project included two stages: The first one dealt with the developer’s rights, obtaining permit documentation, rights to the project documentation, and settlement of accounts between the parties. During the second stage the lawyers advised on the whole process of object construction including conclusion of a contract with a general contractor, commissioning etc.”

    The Revera team consisted of Head of Construction and Real Estate Denis Bogdanov, Attorney at Law Anna Aniskevich, and Lawyers Aliaksandr Antonau and Elena Gridina.

  • SP&P Assists EBRD With Two Belarusian Loans

    SP&P Assists EBRD With Two Belarusian Loans

    Stepanovski, Papakul & Partners has assisted the EBRD with several recent transactions involving loans to large Belarusian borrowers: A July 6, 2017 agreement to loan up to EUR 15 million to IOOO Svuds Export, and a July 25, 2017 agreement to loan EUR 5 million to CJSC Clean Beach.

    According to SP&P, “successful closing of transactions became possible due to the efficient and harmonious work of the EBRD team, the borrowers, and SPP. We are grateful to everyone who participated as usual in not simple (especially at the closing stage) project work and at the same time sincerely happy about this opportunity.”

    The SP&P team on the two deals included Svetlana Valueva, Irina Anop, Dmitry Kovalchik, Sergei Chistyakov, Anastasia Bykovskaya, and Alexander Nikityuk.

  • Fieldfisher Advises Zubr Capital on Acquisition of Online Car Selling Websites

    Fieldfisher Advises Zubr Capital on Acquisition of Online Car Selling Websites

    Fieldfisher has advised Zubr Capital Fund I on its acquisition of Belarus’s av.by and A.TUT.BY online automotive buying and selling websites.

    Going forward the two sites will be combined and will operate as av.by. According to a Zubr Capital press release, “today over 360 thousand unique users per month visit av.by, page views are over 140 million per month.” Those numbers, Zubr Capital reports, are expected to increase by 10% after the combination of the two sites.

    In that Zubr Capital press release, Oleg Khusaenov, the CEO of Zubr Capital, is quoted as saying: “In this deal Zubr Capital was not only an expert on the auto retail market and business processes but first we played the role of mediator and arbiter facilitating efficient dialogue between two strong car advertising online platforms.”

    Dmitry Geranin, CEO of av.by, was quoted as believing that the amalgamation of two strong players under one brand will help users. “We do save the time of users. Before you needed to advertise on several sites. Now it is important to remember that if you want to sell a car you will do it on av.by.”

    According to the Zubr Capital website, it is “the first professional private firm that manages private equity funds in the Republic of Belarus. The company was established by the top-management of Atlant-M Holding in 2009. Atlant-M Holding is a group formed by 28 portfolio companies, which operate in Russia, Belarus and Ukraine, with total annual turnover more than USD 1 billion.” Zubr Capital started its USD 50 million Zubr Capital Fund I at the end of 2016, targeting fast-growing companies with export potential. 

    The FieldFisher team was led by Partner Matthew Hinxman, supported by Legal Assistant Monique Marino.