Category: Russia

Dentons has advised VTB Capital on its USD 75 million acquisition of a minority stake in car-sharing company Delimobil Holding SA. Cleary Gottlieb advised the seller.

Delimobil Holding controls the Russian entities that own the Delimobil, Anytime, and Anytime.Prime brands.

According to Dentons, “the acquisition marks VTB Capital’s first foray into the car-sharing industry. Delimobil will use the capital raised in the transaction to fund its further development and strengthen its position in the Russian car-sharing market. Since 2019, VTB Group has been Delimobil’s partner in providing leasing financing for the expansion of its vehicle fleet.”

Dentons’ team included Moscow-based Partner Konstantin Kroll, Counsel Anton Kunashov, and Associates Olga Sokolova, Boris Belkin, Maxim Ignatov, Oxana Kravchenko, and Arsen Safaryan, Prague-based Partner Jiri Tomola and Associates Jarmila Hager, Martin Fiala, and Eva Klimova, Luxembourg-based Partner Namik Ramic and Associate Reda Faid, and Brussels-based Senior Associate Laurens Engelen.

Cleary Gottlieb’s team consisted of London-based Partner David Gottlieb and Associate Daniel Tierney and Moscow-based Partner Yulia Solomakhina and Associates Dina Iskanderova, Andrey Lipin, and Anastasia Rozeeva.

Heuking Kuhn Luer Wojtek has established a Russian/CIS Desk. 

According to the firm, “one highlight of the desk is that its members are lawyers admitted to the bar in Germany, all of whom are Russian native speakers and some of whom possess dual legal qualifications through completion of law studies not only in Germany, but also in Russia, Kazakhstan, or Belarus.” 

“Germany is the second-largest trading partner for Russia after China,” says Anna Richter, Attorney at the firm’s Cologne office and member of the Russian/CIS Desk. “This offers numerous opportunities for successful cross-border cooperation for our clients. Many companies are forced by the development of the global economy to seek new markets for their products and new territories for further development. We are pleased to be able to offer our clients a central point of contact for the support of all Russia/CIS-related issues and a bridgehead function ‘between the worlds’ in the future.”

Baker Botts has advised Russian liquified natural gas producer PAO Novatek on the sale of a 10% participation interest in Arctic Transshipment LLC to TotalEnergies SE.

Financial details of the transaction were not disclosed.

According to Baker Botts, Arctic Transshipment is Novatek’s subsidiary that will operate two LNG complexes currently under construction in the Kamchatka and Murmansk regions in Russia. According to the firm, “the transshipment complexes are part of Novatek’s logistical chain to optimize the use of the Arc7 ice-class tanker fleet, with the aim to ensure efficient and cost-effective LNG transportation from Arctic LNG 2 and other Novatek projects.”

TotalEnergies SE is a Paris-based producer, refiner, and retailer of natural gas and oil products. The company was founded in 1924 and currently employs around 100,000 people.

The Baker Botts team included Moscow-based Partner Konstantin Litvinenko, Senior Associate Natalia Mikheeva, and Associate Nikolai Gryzunov and London-based Partner Rob Butler and Senior Associate Tom Edwards.

The firm did not reply to our inquiry about the deal.

Alrud has advised German chocolate manufacturer Ludwig Schokolade on countering imports of counterfeit goods resembling its products into the Russian Federation and protecting intellectual property.

According to Alrud, the company’s defense strategy consisted of the registration of Ludwig Schokolade’s trademarks with the Customs Register of Intellectual Property Objects in Russia and with the intellectual property authorities in Ukraine and other CIS countries, as well as customs controls and the verification of imported products.

Alrud’s team included Partner Maria Ostashenko, Senior Associate Boris Ostroukhov, Associate Ilya Khodakov, and Attorney Anton Karpenko.

DLA Piper has advised the Renaissance Insurance Group on the sale of its 100% stake in Renaissance Pensions to the non-state pension fund of Russia’s Sberbank. Herbert Smith Freehills reportedly advised the buyer.

Renaissance Pensions is a private pension fund that serves around 200 corporate customers, over 42,000 clients, and manages RUB 24.5 billion in assets. According to DLA Piper, the fund will remain a separate legal entity for at least a year following the transaction.

DLA Piper’s team consisted of Moscow-based Partner Steffen Kaufmann, Senior Associate Azamat Abdulmenov, and Associate Roman Abu Salekh, as well as Vienna-based Partner Christoph Mager and Senior Associate Ekaterina Larens.

Liniya Prava has advised the Moscow Exchange on its acquisition of a 70% stake in electronic commerce platform Inguru, with an option to increase its stake to 100% within the next five years.

Financial details were not disclosed.

Inguru is an e-commerce platform that offers clients vehicle insurance and loans, mortgages, credit and debit cards, consumer and micro-loans, deposits, and other products.

Liniya Prava’s team included Partner Valeriya Kachura and Senior Associate Alexander Kuznetsov.

Alliance Legal CG has successfully represented the Ekaterinburg Diocese of the Russian Orthodox Church, on a pro bono basis, in a RUB 4 million dispute with the Ekaterinburg City Administration over the diocese’s subsidiary liability for the obligations of its Orthodox Kindergarten. The case was brought before the Arbitration Court of the Sverdlovsk Region.

The Ekaterinburg Diocese founded the Orthodox Kindergarten in 2010. The kindergarten would have been located in a two-story non-residential building owned by the city of Ekaterinburg. However, due to the poor state of the building, the kindergarten never began operating. As a result, it was unable to pay rent, which led to its bankruptcy. Three years after the bankruptcy proceedings had ended, The Department of Municipal Property Management of the Ekaterinburg City Administration submitted a claim for the Ekaterinburg Diocese’s subsidiary liability for the kindergarten’s obligations.

According to Alliance Legal CG, the court found that there were no grounds for the plaintiff’s claim and ruled in favor of the Ekaterinburg Diocese.

The Moscow, London, and New York offices of Debevoise & Plimpton have advised NLMK on its EUR 500 million 5-year Eurobond offering with an annual coupon rate of 1.45%. Linklaters advised joint lead managers and joint bookrunners J.P. Morgan, BofA Securities, and Societe Generale.

According to Debevoise & Plimpton, “the proceeds from the issue will be used to finance the purchase of existing notes due in 2023 and 2024 for the aggregate principal amount of USD 470.6 million, as well as for NLMK’s general corporate purposes.”

NLMK Group is a Russia-based steelmaker that operates production facilities in Russia, Europe, and the United States. Its products are used in construction and machine building, manufacturing of power-generation equipment and offshore wind turbines, among other applications. 

In recent years, Debevoise & Plimpton also advised NLMK on its EUR 250 million and EUR 600 million credit facilities (as reported by CEE Legal Matters on February 21, 2017 and July 23, 2020). The firm also advised NLMK on its previous EUR 500 million Eurobond placement (as reported by CEE Legal Matters on August 1, 2019). 

Debevoise & Plimpton’s team consisted of Moscow-based Counsel Dmitry Karamyslov and Associates Timur Ochkhaev and Evgenii Lebedev, London-based Partners James Scoville and Alan Davies and Associate Patrick Fasoro, and New York-based Partner Michael Bolotin and Associate Sabrina Hsieh.

The Linklaters team included Moscow-based Partner Simon Few and Managing Associate Vladimir Gogokhia and London-based Partner Yaroslav Alekseyev.

Baker McKenzie has advised the Russian Ministry of Finance on a EUR 1 billion issuance of 2.65% bonds due 2036, as well as a EUR 500 million tap offering of 1.125% bonds due 2027.

According to the firm, the offerings are to be consolidated with the previously issued EUR 750 million 1.125% bonds due 2027. The bonds are listed on the Regulated Market of Euronext Dublin.

Baker McKenzie’s team consisted of Moscow-based Partners Dmitry Dembich, Kirill Vikulov, Vladimir Efremov, and Sergei Zhestkov, Associate Polina Govkelevich, and Trainee Gulnazira Magadeeva, London-based Partners Roy Pearce and Adam Farlow and Special Counsel Roger James, and New York-based Partner Terence Gilroy.

The firm did not reply to an inquiry about the deal.

Former Deputy Director of the Department of International Law of Russia’s Ministry of Justice Olga Tsvetkova has returned to Egorov Puginsky Afanasiev & Partners as Co-Head of the firm’s International Arbitration group.

According to EPAM, “over the past 13 years, Olga has successfully conducted cross-border litigation, becoming a recognized expert in the field of international arbitration.” Her areas of expertise include commercial disputes in natural resources, energy, construction, telecommunications, and other industries. Tsvetkova obtained her bachelor’s degree at the Lomonosov Moscow State University Law School and her Master of Laws in International Dispute Settlement in Switzerland. 

“Olga is a talented team member, who has gained invaluable experience and become one of the leading arbitrators of her generation,” commented Evgeny Rashchevsky, Partner at EPAM and Co-Head of International Arbitration and Litigation Practice. “Her return to the EPAM team signals further strengthening of the practice and confirms EPAM’s leading role in international disputes.”