CEE Legal Matters

Category: Uncategorized

  • Glimstedt Advises LHV Bank in Creation of New Financial Instrument

    Glimstedt has advised LHV, the Estonian bank, in developing what it describes as a “globally unique new kind of certificate of deposit”: CUBER and a mobile app called Cuber Wallet.

    CUBER stands for Cryptographic Universal Blockchain Entered Receivables, which the firm describes as “a new kind of certificate of deposit and is meant to be a building block for various innovative financial products.” The firm describes Cuber Wallet as “an iOS and Android app for fast, free, P2P mobile fiat currency payments.”

    According to the firm, “CUBER is a noteworthy FinTech project and a valuable addition to Glimstedt’s extensive experience in complex IT matters.”

    The firm’s team was led by Partner Priit Latt.

  • Baker & McKenzie Announces Global Partnership Promotions

    Baker & McKenzie has announced the election of 83 new partners around the world, expanding the total number of partners — according to the firm — to an even 1500. The firm reports that more than 40% of those newly promoted are women.

    Regionally, 28% of the promotions are in Asia Pacific; 34% are in Europe, Middle East and Africa; 18% in Latin America; and 20% in North America. 

    Three lawyers from Baker & McKenzie’s CEE offices were included in the promotion round (constituting 3.61% of the total): Vienna-based Antitrust lawyer Marc Lager and M&A lawyer Wendelin Ettmayer, and Moscow-based Antitrust lawyer Anton Subbot. The May 2015 promotion of Viennese White Collar Crime specialist Georg Krakow to partner (reported on by CEE Legal Matters on May 7, 2015) was not included in the firm’s June announcement.

    Eduardo Leite, Chairman of Baker & McKenzie, said:  “I am delighted to welcome all of our new partners from across the world. Today’s announcement reflects our confidence in the future growth of our organization and the clients that we serve. I am particularly pleased to see the increase in female partners. As these new promotions demonstrate we have a tremendously diverse pool of natural talent which we need to continue to invest in to develop our next generation of leaders.”

  • Baker & McKenzie Advises ING on Third Loan Facility to Izmir Metropolitan Municipality

    Following last year’s loan facility extended to the Izmir Metropolitan Municipality by ING for the construction of two urban tram lines, the Esin Attorney Partnership — the Turkish member firm of Baker & McKenzie – and Baker & McKenzie’s Frankfurt office have now advised ING on another loan facility to the Izmir Metropolitan Municipality, this time for the procurement of light rail cars.

    This most recent transaction involved a EUR 23.5 million MIGA covered term loan facility extended to Izmir Metropolitan Municipality for the procurement of 85 railcars to be used in its light rail system. The deal was signed on June 18, 2015.

    “We have been advising ING for three years on its ongoing relationship with the Izmir Metropolitan Municipality involving financing of the municipality in regards to its acquisition of ferries and railcars and the development of urban tram lines,“ commented Muhsin Keskin. “It is thrilling to contribute to the modernization of the transport lines of one of Turkey’s most beautiful cities,”

    Frankfurt-based Banking & Finance Partner Oliver Socher, Istanbul-based Banking & Finance Partner Muhsin Keskin led the firm’s team on the deal, supported by Frankfurt-based Senior Counsel Anouschka Zagorski and Istanbul-based Associate Berk Cin.

    Previously, the Firm advised ING in relation to a EUR 55,000,000 MIGA covered term loan facility to the Izmir Metropolitan Municipality for its payment obligations in the construction of two urban tramway lines in Karsiyaka and Konak, two of Izmir’s largest districts (reported on by CEE Legal Matters on May 16, 2014). The firm also recently advised ING Bank on a USD 244,496,076 and EUR 311,996,072 multi tranche dual-currency term loan agreement between ING Bank A.S. and a syndicate of 26 major banks from 11 countries (also reported on by CEE Legal Matters on June 16, 2015).

  • Vegas Lex Managing Partner Re-elected to TNS Energo Board of Directors

    Alexander Sitnikov, the Managing Partner of Vegas Lex, has been re-elected to the Board of Directors of the TNS Energo power utility.

    On June 18, the Annual General Shareholders’ Meeting of the TNS Energo Group of Companies approved the company’s new Board of Directors. In addition to Sitnikov, other members of the Board will include Dmitry Arzhanov (General Director of TNS Energo Group), Boris Shchurov (First Deputy General Director of TNS Energo Group), Igor Mironov (member of the Supervisory Board of the Interregional Association of Employers – Energy Suppliers), Arkady Zalevsky (Head of Corporate and Investment Banking at RCB Bank Ltd.), Alexander Rubanov (President of A3), and Alexander Shurkin (Director of Fuel and Energy Clients Division at Alfa Bank).

    The TNS Energo Group of Companies operates on the wholesale electricity market. It also manages 10 guaranteed energy suppliers that serve 19 million consumers across 11 regions of Russia: Voronezh Energy Retail Company, Karelia Energy Retail Company, Kuban Energy Retail Company, Mari El Energy Retail Company, Nizhny Novgorod Energy Retail Company, Tula Energy Retail Company, Energosbyt Rostovenergo, Yaroslavl Energy Retail Company, Garantenegoservis (in the Novgorod region), and TNS Energo Penza. 

  • EPAM Advises on Securitization of Assets for Housing Finance Bank

    Following several last year (reported on by CEE Legal Matters on July 3, 2014), the Banking & Finance and Capital Markets Team at Egorov Puginsky Afanasiev & Partners (EPAM) has successfully completed the legal support of another securitization of mortgage assets for the Housing Finance Bank (AO Bank ZhilFinance).

    According to EPAM, “the transaction involved the placement by each of the two SPVs (mortgage agents) of two tranches of mortgage-backed bonds with different execution priorities.”

    The senior tranche bonds of each mortgage agent placed by public offering were secured by both mortgage collateral and guarantee provided by the Agency for Housing Mortgage Lending OJSC (AHML). The junior tranche bonds, where the obligations are performed only after fulfillment of obligations under the senior tranche, were all offered to AO Bank ZhilFinance by private subscription, thus improving the credit quality of the senior tranche bonds.

    The special purpose loans taken by ZAO IA Pulsar-1 and ZAO IA Pulsar-2 to purchase the mortgage certificates constituting the mortgage collateral were successfully repaid, within the scheduled timelines, with the proceeds from the bond issue.

    EPAM also reports that the transaction was unusual due to its structure, which provides for monthly bond coupon payments, and because insurance contracts were used to cover the lender’s financial risks in relation to part of the mortgage collateral. 

    The EPAM team was led by Partner Dmitriy Glazunov, and included Senior Associate Oleg Ushakov and Associates Vladimir Goglachev and Nadezhda Morgunova.

    “The structure of the deal is very efficient for our bank,” commented Chairman of the Housing Finance Bank Ruslan Iseev. “This is largely thanks to the high-quality legal support.”

    “This is the third securitization transaction implemented by the Housing Finance Bank together with Dmitriy Glazounov’s team,” said Vice President for Capital Markets of the Housing Finance Bank Yulia Kazantseva. “All the goals were achieved, and novel approached to resolve problems encountered on such projects have been found.”

  • EU Extends Ukraine-Related Sanctions

    EU Extends Ukraine-Related Sanctions

    The EU has extended the economic sanctions imposed in the middle of 2014 on Russia in response to the ongoing situation in Crimea and Sevastopol. This includes the so-called “sectoral sanctions” and restrictions on dealing with Crimea.

    On June 22, pursuant to Council Decision (CFSP) 2015/971, the Council of the European Union stated that it had agreed to extend the sectoral sanctions first introduced on July 31, 2014 for an additional six months. The measures will now remain effective until January 31, 2016 and include:

    • A prohibition on long-term loans and credits to, and severe restrictions on dealing with long-term financial instruments issued by, the largest Russian state-owned banks, energy companies and defence companies;
    • An embargo on the import and export of arms and related material to and from Russia;
    • A prohibition on the export of dual-use goods and technology for military use in Russia; and
    • A ban on the provision of key technologies or services necessary for shale oil projects and deep water or arctic oil exploration and production, including drilling and well testing.

    On June 19, pursuant to Council Decision (CFSP) 2015/959, the Council extended by one year the restrictions on dealing with Crimea or Sevastopol first introduced on June 23, 2014. The measures will now remain effective until June 23, 2016 and include the following prohibitions:

    • The import of products into the EU, originating from either Crimea or Sevastopol.
    • Most types of investment in Crimea or Sevastopol, with the effect that no EU individual or EU-based company can purchase real estate or entities in Crimea, provide finance to Crimean companies or supply related services.
    • The provision of tourism services, except in case of emergency, in Crimea or Sevastopol.
    • The export of a wide list of goods and technologies to Crimean persons, or for use in Crimea. The prohibition also includes a ban on the provision of technical assistance, brokering, construction or engineering services related to infrastructure in transport, telecommunications and energy.

    In response, a spokesperson for Russia’s President Vladimir Putin stated that Russia would “act on the principle of reciprocity”. It is expected therefore that Russia’s ban on the import of certain agricultural products from the EU will also be extended.

    Earlier this month, leaders at the G7 Summit stated that “the duration of sanctions should be clearly linked to Russia’s complete implementation of the Minsk agreements and respect for Ukraine’s sovereignty”. The leaders added that they “stand ready to take further restrictive measures in order to increase cost on Russia should its actions so require”. We will continue to update you as the situation develops.

    By Natalia A. Drebezgina, Partner, Alan V. Kartashkin, Partner, Alyona N. Kucher, Partner, Dmitri V. Nikiforov, Partner, Debevoise & Plimpton

  • BSWW Legal & Tax Advises PayTel on Registration as National Payment Institution

    Lawyers from BSWW Legal & Tax (the firm formed just last week as a result of a merger between BWW Law & Tax and Wojnar Smoluch i Wspolnicy, reported on by CEE Legal Matters on June 18, 2015) have advised PayTel S.A., on its successful application for permission from the Polish Financial Supervisions Authority (KNF) to act as a “national payment institution.”

    On June 23, 2015, the KNF issued its consent, entering PayTel into the register of payment services kept and supervised by the Financial Supervision Authority.

    PayTel is a tele-information company founded in 2003, which manages mass payments, sells products, and offers electronic services such as processing electronic payment transactions. In Poland PayTel is “one of the leaders in terms of sale and distribution of mobile TopUps, prepaid services, and handling mass payment transactions.”

    BSWW Managing Partners Piotr Wojnar and Piotr Smoluch led the team of lawyers advising PayTel, including Attorney Janusz Szelinski and legal trainee Wioletta Wyrzykowska.

    “We are glad that we could support PayTel during several months of verification procedures and with company’s obtainment of a formal status of a payment institution,” said Wojnar. “KNF awarding such a consent constitutes a proof that PayTel fulfils all requirements ensuring safety of rendered services.”

  • KZRP Again Successful for Rokita against Kornatowski

    On March 18, CEE Legal Matters reported that Kochanski Zieba Rapala & Partners (KZRP) had persuaded the Regional Court of Warsaw to reject former Polish Chief of Police Konrad Kornatowski’s claim for monetary damages.  

    This claim, against former Parliamentarian Jan Rokita, who in 2007 had alleged that Kornatowski, in a previous position, had fabricated evidence clearing the militia of responsibility for the 1986 death of an anti-Communist activist. (reported on by CEE Legal Matters on March 18, 2015). KZRP has now successfully persuaded the Regional Court of Warsaw that because the Dziennik Polska-Europa-Swiat newspaper is no longer published, the requirement as part of the non-monetary award made to Kornatowski in the original 2008 trial ordering Rokita to publish a formal apology in that newspaper (along with the Radio ZET and TOK FM radio stations), is now unenforceable.

    According to KZRP, “in the oral reasons to the judgment, the Regional Court shared the view of the plaintiff … that to publish such a statement is objectively impracticable as the Dziennik Polska-Europa-Swiat (Daily Poland-Europe-World) newspaper is no longer printed; it is now available online only.” KZRP reports that “the judgment is not final yet.”

    As in the previous matter, Rokita was represented by KZRP Partner Tobiasz Szychowski and Senior Associate Konrad Orlik.

  • SPCG Advises Money Makers on Restructuring Into Investment Fund Company

    SPCG advised the Money Makers brokerage house on its restructuring into an investment fund company, including during proceedings before the Polish Financial Supervision Authority (KNF).

    On June 23, 2015 the KNF granted Money Makers — an asset management company that is part of the Alior Bank group — a permit to pursue the activity of an investment fund company and to manage portfolios that include financial instruments.

    The firm’s team in the matter was led by SPCG Partner Artur Zapala, and included Of Counsel Ewa Mazurkiewicz.

  • CMS and Allen & Overy Successfully Represent P4 in Dispute with Polish Court of Competition and Consumer Protection

    CMS and Allen & Overy have teamed up to successfully represent P4 in a dispute with the Polish Court of Competition and Consumer Protection.

    According to CMS, the Court “repealed a decision of the President of the Competition and Consumer Protection Office to impose a multimillion-dollar fine for P4’s alleged involvement in a cartel of four mobile operators (Orange, T-Mobile, Plus, and P4). The alleged cartel was connected with a refusal to buy DVB-H standard mobile TV services.”

    “Such situations are very rare,” said CMS Partner Malgorzata Urbanska. “In 86% of cases, the Court upholds the decisions of the Competition and Consumer Protection Office. The annulment of the decision is a good sign – it is evidence that the judicial review of the President of the Office’s decisions exists in reality, not only on paper. It gives hope to other businesses struggling with sometimes unfair decisions of the regulator, and shows that their efforts to appeal decisions can pay off,” 

    P4 was represented by Urbanska and Malgorzata Surdek from CMS, along with Marta Sendrowicz from Allen & Overy.