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Egorov, Puginsky, Afanasiev & Partners has successfully defended the interests of Transammiak against a RUB 12 million claim brought by the Department of Rosprirodnadzor (Russia’s Federal Service for the Supervision of Use of Natural Resources) in the Voronezh region of Russia for damages relating to an ammonia leak.

According to EPAM, the case involved a June 21, 2015 leak of ammonia in Voronezh. After considering the firm’s submissions, including three expert opinions presented by the firm, the court “accepted [EPAM’s]  position and dismissed the lawsuit in full.”

The firm’s team was led by Partner Valery Eremenko, and included lawyers Vera Rihterman, Andrei Reznichenko, and Valery Sokurenko.

On 25 March 2016 the Moldovan Parliament passed a new law on the promotion of the use of electric energy from renewables (“Law 10/2016”). Law 10/2016 is meant to enter into force on 25 March 2017, and its scope is officially to institute the necessary legal framework for application of EU Directive 2009/28/CE in Moldova.

All of these formulations are very nice, of course, but does this new piece of legislation bring something new to the table? Will investors benefit from clear long-expected guarantees for their off-take supply agreements? Will the renewables market finally get a boost in Moldova, as was the case years ago in Romania and Bulgaria?

Support schemes introduced

Pursuant to Law 10/2016, the following two support schemes will be implemented to promote renewables:

1. tender-based fixed pricing for supplied electric energy by eligible producer(s) holding, or which will hold a total installed capacity exceeding the figure determined by the Moldovan Government; and 
2. tariff-based, in accordance with the local energy regulator’s (ANRE) regulation (still to be implemented), for supplied electric energy by eligible producer(s) holding, or which will hold a total installed capacity below the figure under 1) above, but in any case, of not less than 10 kW and confirmed by ANRE. 

Government’s powers

Law 10/2016 inter alia empowers the Moldovan Government to set, approve and update, as necessary, the minimum installed capacity to be eligible for the support schemes listed above. Also, the Government must approve the regulations on organisation of tenders for the scheme 1) above and on confirmation of the status of an eligible producer qualifying under 2) above for the Law 10/2016 to come to life. At this moment there is no hint as to when to expect more clarity in respect of these topics.

It will also be the Government that will set out the volume of energy to be put to tender for the scheme 1) above, as well as setting the capped price which the participants at the tender shall not be allowed to exceed. ANRE shall no longer hold attributions in this respect, but shall only act as a proposing authority. Still, ANRE will set out the tariff size for eligible producers under support scheme 2) above.

Who is an eligible producer?

In accordance with Art.34(2) Law 10/2016, eligible producers are:

1. either producers of electric energy declared successful in the tender, organised in respect of the support scheme under 1); or 
2. producers of electric energy, confirmed in this status in line with Law 10/2016. 

An eligible producer status is granted for 15 years as of the moment its power plant (unit) becomes operational. It will be ANRE’s right to adjust the prices (when declared successful in a tender) and tariffs (as confirmed) in line with a regulation to be further approved. At this point the extent of ANRE’s right to interfere into the set prices and tariffs is not clear.

Option one: Tender for granting of eligible producer status

The whole process can be summarised as follows:

1. After receiving the proposal from ANRE, the Government shall determine the volume (including break-downs per category of renewables) to be put to tender and the capped price which the bidders cannot exceed with their offers (bids). 
2. Tenders shall be organised by the Government through a commission. In its activity, the commission will follow the regulation on organisation of tenders for the support scheme 1) above, which, as indicated above, will have to be approved by the Government. 
3. The notice of tenders shall be published in the Official Gazette of Moldova at least 2 months before the deadline for the submission of bids. It will be compulsory to clearly indicate the criteria pursuant to which bid(s) shall be determined as winning. 
4. Any subject (including the ones that do not operate a production facility yet) that fulfills the tender’s requirements can participate in a bid. Law 10/2016 prohibits however the submission of bids by participants that are planning to utilise generation equipment manufactured more than 36 months before the putting into operation of the power plant (units). Also, in the case of cogeneration units, only technologies with an efficiency of over 80 % shall be allowed to participate. 
5. All bids made shall be treated with confidentiality by the commission. 
6. Bbid(s) that offer the lowest price and which offered production capacity does not exceed the total volume put for tender, shall be declared successful. 

In all cases participants whose bids were unsuccessful to supply electric energy by direct negotiations with participants on the market, shall not have their rights affected.

Option two: confirmation as eligible producer

All subjects that were unsuccessful with the support scheme 1) above, are within their rights to apply to the ANRE to have the status confirmed. The confirmation shall be granted in line with a regulation that shall be approved by the Government, whereas the sale of electric energy shall be guaranteed on the basis of tariffs approved by ANRE.

Similar to the tender procedure, Law 10/2016 prohibits requests coming from applicants planning to utilise generation equipment manufactured more than 36 months before the putting into operation of the power plant (units), and in the case of cogeneration units, only technologies with an efficiency of over 80 % are allowed to apply.

Law 10/2016 indicates that the status shall be granted to all applicants fulfilling all applicable conditions pursuant to Law 10/2016, provided overall cumulated capacity is not exceeded.

Conclusion

Law 10/2016 is still in its infancy and it will take the Moldovan authorities doing their best to see in the serious energy players from the EU coming in. Some of the open questions left are: What will the capped price approved by the Government be? How will the awarded prices and approved tariffs be adjusted by ANRE? What will the quality of the governmental regulations to be adopted in accordance with Law 10/2016 be? The answers to these questions are still to be adopted and applied in practice.

By Vladimir Iurkovski, Attorney at Law, and Sorin Dolea, Schoenherr

The Gur Law Firm has advised and represented National Cotton Council of America and 12 of the 24 cooperating trading companies in an anti-dumping investigation carried out by Turkey’s Ministry of Economy concerning imports of cotton originating from the United States America.

The investigation was the first ever anti-dumping case initiated on an ex officio basis by the Ministry of Economy, and spanned a time period of 18 months.  It was concluded in April 2016 by a decision of Turkey’s Board for the Evaluation of Unfair Competition in Imports to impose a single anti-dumping duty at 3% of the CIF value of imports from the United States.  

According to the Gur Law Firm, the final decision represents a significant cut down from the weighted average dumping margin of 5.9% the Ministry announced through its final disclosure in February 2016.

The Gur Law Firm team was led by Of Counsel Evren Guldogan and included Partner Sena Apak and Associate Selen Tan.

The Management Board of RB Rail AS has selected Klavins Ellex, Eversheds Bitans, and the Latvian offices of Sorainen, Trinity, and Glimstedt as advisers to the Rail Baltica project, subject to entering into a framework agreement.

Rail Baltica is a rail transport project which aims to integrate the Baltic States in the European rail network. The project includes four European Union countries – Poland, Lithuania, Latvia, Estonia — as well as, indirectly, Finland.

According to a Klavins Ellex press release, “Klavins Ellex is delighted to have the opportunity to take part in this innovative project and is looking forward to being involved in the creation of a new railway which would connect the Baltic States to ‘the heart of Europe.’” 

Editor’s note: After this article was published, Sorainen announced that its team includes Partner Eva Berlaus and Senior Associate Raivo Raudzeps.

Natalia Kochergina, the Head of Real Estate for DLA Piper in Kyiv, said that, from a business perspective, things are “absolutely” better in the country than they were six months or a year ago. The situation remains fragile, she conceded, but she insisted that progress is undeniable. She pointed to the stabilizing Hrivnya as a welcome sign.

DLA Piper’s office has expanded in the past 6 months as well, Kochergina reported, noting that while before the Euromaidan Revolution of 2014 the firm did most of its work for foreign clients, the ratio of foreign to Ukrainian clients now is closer to 50:50, or even swung towards the local. In terms of foreign investors, Chinese investors are more active now than their European or American counterparts, who are more risk averse. In Kochergina’s own practice, Real Estate, she has also seen a definite recovery in foreign investment, particularly in the retail sector.

The legal market has changed a great deal in the last few years, Kochergina pointed out, noting that Chadbourne, Clifford Chance, Gide Loyrette Nouel, and Schoenherr have all withdrawn from the country (though Gide’s office was taken over by another French firm, Jeantet). She described a general trend in that direction, as some foreign firms lose trust in the geopolitical future of the country. Nonetheless, the market has stabilized, she believes, with local firms getting stronger, and an increasing number of boutiques doing niche work.

In terms of practice areas, Kochergina reported that litigation is very strong at the moment, as is tax restructuring and litigation. Infrastructure is also strong, as the government seeks to improve the nation’s ports with international investors.

Despite the overall positivity of her report, Kochergina conceded that corruption — while improving in small steps — remains a problem, especially in the judiciary. Still, she noted, legislation is improving rapidly, and she said that recent changes in the title registration legislation which increase transparency are “really great.” She concluded that these changes are, “definitely, positive.”

Finally, Kochergina turned to the noticeable positivity in the country as a whole, which she says was less obvious a year or two ago. She accepted congratulations on the recent victory by the Ukrainian singer Jamala at the Eurovision contest with pride, and said that overall “people are very happy.” Speaking on Vyshyvanka Day — the Ukrainian holiday named for the embroidered shirt in the Ukrainian national costume, which has also become a celebration of Ukrainian identity — Kochergina commented on the number of people she saw outside her window wearing the Vyshyvanka in a display of patriotism as another positive sign.

Magnusson has advised UBS Real Estate GmbH, acting in its capacity as advisor for a German depositary bank that is currently administrating the German Special-AIF UBS (D) Sector 3 Real Estate Europe, in connection with the sale of the Nova Praga office building in Warsaw to Mazovia Capital. Greenberg Traurig advised Mazovia Capital on the transaction, which closed this month.

The building, which will now be known as Mazovia Plaza, is located in the North Praga district of Warsaw, a six-minute walk from the Wilenska metro station. It is a seven-story building offering approximately 6,000 square meters of office, retail, and storage space. The property includes 76 parking spaces. 

Magnusson provided UBS Real Estate with legal advice concerning the transaction, including assisting in the legal due diligence process and drafting, negotiating, and executing the sale agreement along with auxiliary agreements. Cushman & Wakefield acted as real estate advisor and broker of the seller.

The Magnusson team was led by Partner Michal Siwek, who commented that: “We are very glad that as a result of a long and intensive process we have successfully completed this transaction together with the Investment Team of UBS Real Estate and Cushman & Wakefield. The Warsaw Praga district is a vibrant and fast evolving area. Following Praga 306 project, in which we were also involved, the ownership change of Mazovia Plaza is one of many developments which this quarter will definitely see in coming years.”

Siwek was assisted by Magnusson Senior Associates Bartosz Debski and Dawid Demianiuk and Associate Zuzanna Wencel-Czuryszkiewicz.

The Greenberg Traurig team advising Mazovia Capital was led by Partner Agnieszka Stankiewicz, supported by Associate Dobroslaw Plaska.

Redcliffe has advised the EBRD in connection with a USD 40 million financing of GNT Group, an integrated grain supply chain and export logistics group which operates in Odessa Seaport. Clifford Chance advised EBRD on the English and UAE law aspects of the financing, while the ANK law firm advised the GNT Group on the deal.

According to Redcliffe Partners, the GNT Group will use the financing to expand its existing grain and metals terminal in the Odessa Seaport. The implementation of the project is expected to have a significant positive impact on the Ukrainian economy, as the expanded terminal will allow larger volumes of industrial and agricultural exports to be “transhipped” through the port.

The transaction required legal advice in several jurisdictions, including Ukraine, the UK, the UAE, Cyprus, and Switzerland. 

Redcliffe’s team included Managing Partner Olexiy Soshenko, Counsel Dmytro Orendarets, Associate Evgeniy Vazhynskiy, and Junior Associate Olesia Mykhailenko. 

Editor’s Note: After this article was published the ANK law firm confirmed to CEE Legal Matters that it had provided legal support to the GNT Group on the deal. The firm’s team consisted of the firm’s Head of Maritime Law Artyom Volkov, Managing Partner Alexander Kifak, and Lawyer Vladyslav Brig.

 

DJBW Danilowicz Jurcewicz Biedicki i Wspolnicy has advised Industrial Division’s shareholders on the sale of part of their shares to a private equity fund managed by Abris Capital Partners. Weil, Gotshal & Manges advised the buyers.

The transaction included the sale of part of the company’s shares to the fund by existing shareholders and the fund’s acquisition of shares in the increased share capital in order to take control over the company and ensure, together with the existing shareholders, the further development of the company. Industrial Division is a leader in the locomotive rental segment of the Polish market.

DJBW participated in the preparation and negotiation of transactional documentation. The firm’s team was led by DJBW Partner Ludomir Biedicki and Advocate Artur Kloc.

The Weil team consisted of Partners Pawel Rymarz and Iwona Her, Associates Marek Maciag and Bartosz Gryglewski, Counsel Monika Kierepa, and Associates Leszek Cyganiewicz, Barbara Sobowska, and Krzysztof Jagiello (Associate).

Clifford Chance’s Prague, Milan, Rome, Warsaw, and London offices combined to advise the Sazka Group and Italian Gaming Holding, subsidiaries of Czech lottery operator Sazka and investment company EMMA Capital, on their successful consortium bid in the lottery concession tender process in Italy and related bank financing. The other consortium members include Lottomatica S.p.A. (a subsidiary of International Game Technology PLC), Novomatic Italia S.p.A., and Arianna 2001 S.p.A.

Lottomatica was advised by Cleary Gottlieb and NCTM Studio Legale, with A&O (Milan) advising on the senior bank financing.

The consortium offered EUR 770 million for a nine-year licence to operate Lotto, the operator of the Italian national lottery business, and further pledged to invest in the renewal of the company’s technology infrastructure. 

“Lotteries and gaming are key pillars of our business,” explained Sazka Group’s Investment Director Stepan Dlouhy. “This step fully conforms to the strategy pursued by Sazka Group a.s., whereby we aim to build a large diversified European group that specializes in gaming.”

The cross-border Clifford Chance team that advised on the investment and its financing was coordinated by the Prague office and consisted of Prague-based Partners David Kolacek and Milos Felgr, Milan-based Partner Umberto Penco Salvi, Rome-based Partner Luciano Di Via, London-based Partner Andre Duminy, Warsaw-based Of Counsels Nick Fletcher and Rafal Zakrzewski, Rome-based Counsel Filippo Degni, Milan-based Senior Associate Ivana Magistrelli, London-based Senior Associate Richard Jones, and Prague-based Associate Marian Husar, Milan-based Associate Giuseppe De Cola, and Rome-based Associate Paul Simon Falzini.

On the closing of the transaction, lead Partner David Kolalek commented: “We are proud to have had another opportunity to work on an exciting outbound investment project with our valued clients KKCG and EMMA Capital that demonstrates that the increasingly significant Czech investment groups are key players on the European stage. On the legal side, it was satisfying not only to be involved in the successful mobilization of such a talented cross-border team but also to have had the opportunity to consolidate our expertise in the gaming and leisure industry and confirm our track-record as leaders in the local and regional market.” 

SPC Legal has announced that it acted for majority shareholders of Ortopedijos Projektai (the parent company of OrtoPro) in the take-over of approximately 30% of the shares in the company.

Ortopedijos Projektai and OrtoPro are strong players in the orthopedic market, manufacturing orthopedic equipment and providing orthopedics related services since 2001. The deal value was not disclosed.

The SPC Legal team consisted of Partner Mindaugas Rimkus, Senior Associate Dovidas Vainorius, and Associate Evaldas Skikas.