Category: Russia

Ilyashev & Partners has promoted Head of Moscow Office Vladimir Zakharov to partner.

Zakharov has headed the Moscow Office of Ilyashev & Partners since its establishment in 2015. He is an expert in compliance, restructuring, and M&A. According to the firm, “Zakharov provides legal support and counseling in trade and financial transactions with the participation of European countries, Asia-Pacific region, and the USA, as well as represents clients in Russian courts and before public authorities.”

Ilyashev & Partners Managing Partner Mikhail Ilyashev commented, “together with our clients we recognize Vladimir’s high professionalism, his leadership skills, and knowledge of Russian legal realities. His appointment as a partner is a logical reflection of the steady dynamics of our firm’s growth in the Russian market.”

Before joining Ilyashev & Partners, Zakharov worked as a General Counsel at AGC Glass Europe for Russia and Eastern Europe. He also led the BIC Group Legal Department for Russia and the CIS.

Zakharov graduated from the Kemerovo State University in Russia. 

Dentons has advised The Black Sea Trade and Development Bank on its extension of a USD 69 million loan to the Russian State Transport Leasing Company to finance the construction of the Lavna Coal Transshipment Terminal at the Murmansk sea port. Allen & Overy reportedly advised the borrowers.

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. Headquartered in Thessaloniki, Greece, the BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion.

Dentons describes the loan to the Russian State Transport Leasing Company (STLC) from the BSTDB as “the bank’s largest investment in Russian infrastructure development to date,” and reports that “the loan agreement was signed by BSTDB President Dmitry Pankin and STLC Director General Sergey Khramagin in the presence of Prime Minister Dmitry Medvedev at the Russian Investment Forum in Sochi.”

According to Dentons, the Lavna project is the first port concession in Russia. The firm reports that “the project will make a significant contribution to the development of export transport infrastructure, will increase the efficiency of coal transportation and will enhance Russia’s transit capacity in the region.”

Dentons’ team was led by Russia-based Partner Timothy Stubbs and included Moscow-based Counsel Dennis Montgomery, Senior Associate Anna Booth and Associate Anna Nekhodtseva. 

“From the perspective of a finance lawyer, my general observation is that the biggest problem is of course the political issue,” says Herbert Smith Freehills Partner Olga Davydava, referring to the sanctions imposed by the United States and European Union. “The political situation really affects the legal market.”

“While it is a quite stable situation from the legislative perspective and no new sanctions having a significant impact on business (other than certain specific SDN nominations) have been imposed since August 2018,” Davydava  says, “there are various new draft laws being introduced in the US, which may impose new sanctions against Russia.” This, she reports “raises a general concern in the business community, somewhat destabilizes the situation, and creates uncertainty as to the legal framework.” 

Because of the uncertain circumstances, Davydava says, “it is sometimes difficult to give specific advice to clients on risks  because a purely legal interpretation leads to one result, but when you take into account the political aspect then the result may be different.” As a result, she says, “risk assessment and analysis for clients when making business decisions associated with Russia has become more challenging.” 

“We really can see how it affects investors and how it affects international banks considering lending,” she says, describing it as “an interesting time.” Having said that, Davydava notes that international banks have significant liquidity, which they need to invest to generate profit for their shareholders. “We see and hear from our contacts in different Russian and international banks that, despite the political challenges, Russia remains an attractive jurisdiction with good risk/margin balance.”

On the brighter side, Davydava says, there have been a few changes in Russian laws to help local businesses. One of these changes, she says, is a law on syndicated loans which came into effect last year. “The law changed the market to the effect that the main Russian banks have started lending on the basis of Russian law syndicated facilities more often. Previously this was not a frequently used instrument, because the law was not clear,” she explains. “Now the law has made it clearer how a syndicated loan would work under Russian law.”

Another significant change involves the introduction of a new instrument called a “project finance factory,” Davydava says, which provides a legislative framework for financing certain kinds of projects with government support through Vnesheconombank. “Obviously Russia needs to develop its infrastructure,” she says. “And again, given the sanctions environment and the resulting limited access to international lenders – which are not as available to Russian borrowers as they used to be – the instrument is a necessary measure.” According to her, Vnesheconombank together with other lenders will finance new projects on the basis of the principle of project financing. “It is a good initiative, which helps the projects Russia needs obtain the financing to develop.” 

Finally, she says, Russia’s legal market has not experienced any major changes recently. While some international law firms have left the market in the last few years, “the big players, who were always here, remain here.”  In addition, the 2018 draft law which would, in Davydava’s words, have made it “super difficult for international law firms to work on this market,” was not approved. “We have not heard anything new, as it caused controversy among major corporations, including state-owned ones,” the Herbert Smith Freehills partner says. “They understood the value of having international law firms on international deals, since they require international experience. Therefore, big Russian corporations did not support the initiative, which is good for us of course.”   

Baker Botts has acted for PAO Novatek, one of the largest independent natural gas producers in Russia, on the sale of a ten percent participation interest in the Arctic LNG 2 project to Total S.A.. The transaction was signed on March 4, 2019, and it is expected to close by the end of the first quarter of 2019.

According to Baker Botts, “the Arctic LNG 2 project envisages constructing three LNG trains, each with a capacity of approximately 6.6 million tons per annum, using gravity-based structure platforms. The project is based on the hydrocarbon resources of the Utrenneye field. Novatek estimates total project costs to be in the region of USD 20 billion to USD 21 billion.”

The Baker Botts team acting for Novatek included Special Counsel Konstantin Litvinenko, Senior Associate Oleg Orekhov, and Associates Natalia Mikheeva and Nikolai Gryzunov, all from the firm’s Moscow office, and Partner Mark Rowley and Senior Associate Matt Lewy of the London office.

Baker Botts did not reply to our inquiry about counsel for Total.

Maxima Legal has been selected by Institute Stroiproyekt to provide legal assistance following Stroiproyekt winning a tender to develop the technical and economic scheme for the construction of a tram line between Saint Petersburg and Leningrad oblast on the basis of a concession agreement.

According to Maxima Legal, “according to the concept to develop the transport system of Saint Petersburg, by 2023 a tram line linking the Ulitsa Dybyenko metro station and the suburb of Kudrovo should been in place. The final stop on the line is planned to be the village of Novosaratovka in the Vsevolozhsky region of Leningrad oblast.”

The project is to be funded by the budget of Leningrad oblast with private investment being involved through a PPP scheme. 

Maxima Legal reports that its PPP Practice “has already undertaken an initial analysis of PPP legislation in St Petersburg and Leningrad oblast and has begun drafting the legal and structural scheme to implement the project, including proposed models for a relationship between the parties involved in the public-private partnership in respect of management and the parties’ rights and obligations.”

“Lawyers from Maxima Legal,” the firm reports, “will determine the list of property and property rights to be transferred from the both regions and the procedure for granting land plots on the basis of their property status, as well as drafting the key terms of the concession agreement. In addition, the legal part of the feasibility study will contain a risk matrix, including a description, categorization and impact assessment of identified risks. Maxima Legal is also assisting with obtaining approval of the agreement in the relevant committees and government developments in St Petersburg and Leningrad oblast.”

White & Case has advised Credit Bank of Moscow on its offering of EUR 500 million 5.15 percent Eurobonds due 2024.

The notes are dual listed on the regulated markets of Euronext Dublin and the Vienna Stock Exchange.

The White & Case team was led by Partner Darina Lozovsky (based in both Moscow & London) and Moscow-based Local Partner Dmitry Lapshin, and included London-based Counsel Doron Loewinger and Moscow Associates Renat Akhmetzyanov and Yulia Akulinina.  

Pepeliaev Group Partner Sergey Spasennov has been elected a Senior Partner of the firm.

Spasennov has led the Pepeliaev Group’s St. Petersburg Office since 2005. According to the firm, “during his leadership, not only has the client pool of the Petersburg Office expanded, but the office’s revenue has climbed more than fivefold. The office has implemented over 200 major integrated projects for leading foreign and Russian investors developing business in the North-Western Region.”

“Sergey is a renowned expert in the legal services market; he makes a considerable contribution to the development of firm’s business,” commented Managing Partner Sergey Pepeliaev. “I am confident that he is ready to face new professional challenges and that his election as a Senior Partner will boost our growth and enhance our company’s positions not only in St Petersburg and the North-Western Region but everywhere Pepeliaev Group has a presence.”  

Russian Patent Attorneys Andrey Bazhenov and Albert Ibragimov have been promoted to partner at Gorodissky & Partners in Moscow.

The promotions of Bazhenov and Ibragimov were announced at the same time as Sergey Medvedev’s whose promotion was reported by CEE Legal Matters earlier in the week.

Bazhenov joined Gorodissky & Partners in 2001. He has headed the firm’s Electronics and Physics Department since 2015. According to Gorodissky & Partners, “he counsels clients on patent strategies for the purposes of protection of technical solutions of companies in Russia, CIS, Europe, Asia, USA, and Canada in the spheres of computers and aerospace, data processing systems, control systems, plasma coating, electric-powered machines, and equipment. He has an experience in oppositions and appeals before the Russian and Eurasian Patent Offices.”

Bazhenov studied at the Bauman Moscow State University and at Moscow’s Academic Law University. Before joining Gorodissky & Partners he worked at the Bauman Moscow State University and at the Nexus company.

Ibragimov joined Gorodissky & Partners in 2008 as a Regional Director of the firm’s Kazan office.  He provides advice on legal protection of inventions and utility models, patent invalidation, as well as technology transfers, licensing, and IP management. He also specializes in patenting geophysical inventions. 

Prior to joining Gorodissky & Partners, Ibragimov worked at the Tatarstan Center of Scientific and Technical Information. He studied at the Kazan’s A.N. Tupolev National Research Technical University, the Institute of Advanced Studies of the Ministry of Industry and Science of the Russian Federation, and at the Institute for Advanced Studies of the Russian Federal Center of Forensic Science. 

He is a member of LES International and a recipient of the State Award of the Republic of Tatarstan in the field of science and technology.