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Portrait of Konstantin Baranov

Konstantin Baranov

Head of Banking & Finance

Naberezhnaya Tower, block C
Naberezhnaya Tower Block C - 10 Presnenskaya Naberezhnaya
123112 Moscow
Languages Russian, English, Spanish

Konstantin Baranov is a partner heading the Banking & Finance. He is also a co-head of the Restructuring & Insolvency practice. 

He has 25+ years’ experience in representing financial institutions and corporates on a wide range of cross-border and domestic banking and finance transactions with particular focus on project, trade and real estate transactions, acquisitions and corporate financing. 

Konstantin also specialises in the field of debt capital markets, derivatives and structured finance. His other areas of expertise include banking regulation, insolvency and restructuring, as well as advising on sanctions and counter measures.

He made appearance in major law rankings, such as Pravo.ru 300, Kommersant, Chambers Global, Chambers Europe, IFLR1000 and Best Lawyers.

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Relevant experience

  • Aareal Bank – an extension and conversion of EUR 300m structured syndicated loan to a Russian-based developer for refinancing three real estate projects in Moscow secured by 16 properties.
  • Major Russian state-owned bank – advising on the termination of the aircraft lease agreement and financial obligations, including advising on the possible bankruptcy of the aircraft tenant.
  • Major warehouse developer – acting for the borrower in relation to a refinancing by Sberbank of Russia of a USD 100m financing of a warehouse complex in the Moscow region.
  • North-West Concession Company – advising on a financing of a USD 2bn project from Sberbank and VEB.RF in relation to the 15-58 km toll road between Moscow and St. Petersburg (M11).
  • One of the largest Russian banks – advising on a transfer to a major Russian financial group of a RUB 9bn subordinated loan provided to the project company under the Western High-Speed Diameter toll road project in St. Petersburg.
  • Raiffeisenbank – advising on a USD 33m and a USD 47,5m and credit facilities to a major Russian warehouse development group.
  • RCB Bank – advising on up to USD 75m and 50m uncommitted revolving facilities provided to a number of Russian copper and coal producers for working capital purposes. 
  • Russian sovereign fund – advising in relation to the construction of the largest polymer facility, with the involvement of a large Japanese contractor.
  • UniCredit – legal advice on a secured syndicated EUR 43m financing to refinance certain bank and intra-group facilities in relation to an outlet shopping centre in the Moscow Region, Russia.
  • Vinci Concessions – full-scope legal assistance on RUB 10bn project financing provided by a major Russian financial group for construction of 7 and 8 sections of the Moscow-St. Petersburg toll road (M11).
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Awards & Rankings

  • Best Lawyers 2021, Lawyer of the Year for Financial Institutions
  • Best Lawyers 2022, Banking and Finance Law
  • Best Lawyers 2022, Capital Markets Law
  • Best Lawyers 2022, Financial Institutions
  • Best Lawyers 2022, Project Finance and Development Practice
  • Best Lawyers 2022, Insolvency and Reorganization
  • Chambers Global 2021, Banking & Finance
  • Chambers Europe 2021, Banking & Finance
  • Leaders League 2021, Banking, Highly recommended
  • IFLR 1000 2022, Banking: Highly regarded
  • Kommersant 2020, Capital Markets
  • Kommersant 2020, Fintech
  • Pravo.ru-300 2020, Banking & Finance
  • Practice head Konstantin Baranov handles a range of financing matters, including real estate and trade finance. A source describes him as "very personable" and also commends his calm approach to issues, Chambers 2018
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  • Doing Business in Russia guide (since 2010), chapters on currency control, lending in Russia, corporate bankruptcy and banking sector
  • CMS Expert Guide to AML and CTF law and regulation in CEE
  • CMS Expert Guide to the private placement of equity securities
  • CMS Expert Guide to coronavirus related loan moratoriums
  • CMS Expert Guide to stabilisation and restructuring initiative
  • Getting the Deal Through – Healthcare M&A, Law Business Research, 2019
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  • 2010, BPP University Law School (Graduate Diploma in Law)
  • 1996, Moscow State Institute of International Relations (MGIMO University, Degree in Law)
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SEAM­LESS Leg­al re­cog­nised by Pravo-300 2022
We are more than happy to share our first re­cog­ni­tion as SEAM­LESS Leg­al by the na­tion­al rank­ing Pravo.ru-300. This year SEAM­LESS Leg­al has earned 17 re­cog­ni­tions, in­clud­ing Band 1 award for the In­sur­ance...
De­vel­op­ments in the reg­u­la­tion of di­git­al fin­an­cial as­sets and di­git­al...
Spe­cif­ic rules for the tax­a­tion of trans­ac­tions in­volving di­git­al fin­an­cial as­sets (“DFAs”) and “hy­brid” di­git­al rights, com­pris­ing DFAs and util­it­ari­an di­git­al rights (“UDRs”) have been in force since 14 Ju­ly 2022, when a law* amend­ing the Rus­si­an Tax Code (the “Law”) came in­to force.A leg­al frame­work for the cir­cu­la­tion of DFAs and UDRs was in­tro­duced in 2021, but did not touch upon tax as­pects. Pri­or to the in­tro­duc­tion of a spe­cial tax reg­u­la­tion, there was an act­ive dis­cus­sion re­gard­ing the treat­ment of DFAs and UDRs for tax pur­poses and the tax con­sequences of trans­ac­tions with them. It was clear that, without sup­ple­ment­ing the Tax Code with spe­cial norms, there would be many am­bi­gu­ities in the ap­plic­a­tion of the ex­ist­ing tax reg­u­la­tion to trans­ac­tions with DFAs and UDRs.As a res­ult of these dis­cus­sions, tak­ing in­to ac­count the spe­cif­ic nature of DFAs and UDRs as new ob­jects of civil rights, the Rus­si­an Tax Code has been fun­da­ment­ally im­proved. Some art­icles have been sup­ple­men­ted with spe­cial rules ap­plic­able to trans­ac­tions with these types of as­sets, and en­tirely new art­icles have ap­peared which fo­cus ex­clus­ively on DFAs and UDRs and the spe­cif­ics of cal­cu­lat­ing VAT, per­son­al in­come tax and cor­por­ate profits tax through­out the en­tire “life cycle” of such as­sets, as well as de­fin­ing the ob­lig­a­tions of tax agents.At the same time as the Law, amend­ments* to the Law on DFAs and oth­er laws were passed.Com­ment­sThe in­tro­duced reg­u­la­tion is quite sys­tem­at­ic and elab­or­ate, and the ad­op­ted amend­ments use the ter­min­o­logy es­tab­lished by the Law on DFAs, which should min­im­ise dis­crep­an­cies. In ad­di­tion, the spe­cif­ics of tax­a­tion of trans­ac­tions with DFAs and UDRs fit in­to the ex­ist­ing struc­ture of the Rus­si­an Tax Code, which en­sures trans­par­ency in their ap­plic­a­tion and makes it easi­er to elim­in­ate gaps in the tax reg­u­la­tion in the fu­ture.We will con­tin­ue to fol­low the emer­ging reg­u­la­tion of DFAs and UDRs and will keep you in­formed of the most sig­ni­fic­ant de­vel­op­ments and changes.* In Rus­si­an
Rus­sia sanc­tions 31 for­eign com­pan­ies
On 11 May 2022, the Rus­si­an Gov­ern­ment sanc­tioned 31 en­tit­ies from the EU, US, UK, Singa­pore and Switzer­land and their con­trolled en­tit­ies (the “Sanc­tioned Per­sons”) pur­su­ant to De­cree of the Rus­si­an Pres­id­ent No. 252* dated 3 May 2022 (the “De­cree”). The list of the above men­tioned en­tit­ies is set out in Rus­si­an Gov­ern­ment Reg­u­la­tion No. 851* (the “Reg­u­la­tion”). The Rus­si­an Min­istry of Fin­ance may sub­mit pro­pos­als to the Gov­ern­ment to amend this list.Un­der the De­cree, fed­er­al state au­thor­it­ies, state au­thor­it­ies of con­stitu­ent en­tit­ies of the Rus­si­an Fed­er­a­tion, oth­er state au­thor­it­ies, mu­ni­cip­al au­thor­it­ies, as well as leg­al en­tit­ies and in­di­vidu­als un­der the jur­is­dic­tion of the Rus­si­an Fed­er­a­tion (the “Reg­u­lated Per­sons”) are pro­hib­ited from:lower-al­phaper­form­ing trans­ac­tions (in­clud­ing for­eign trade con­tracts) with Sanc­tioned Per­sons;dis­char­ging out­stand­ing ob­lig­a­tions to Sanc­tioned Per­sons (in­clud­ing ob­lig­a­tions un­der for­eign trade con­tracts); an­d­car­ry­ing out fin­an­cial op­er­a­tions with Sanc­tioned Per­sons as be­ne­fi­ciar­ies. The Rus­si­an Min­istry of Fin­ance is en­titled to is­sue of­fi­cial cla­ri­fic­a­tions for para­graphs a) and b) above, and the Bank of Rus­sia may give cla­ri­fic­a­tions for para­graph c) above.The Reg­u­la­tion also sets out ad­di­tion­al cri­ter­ia for qual­i­fy­ing the fol­low­ing trans­ac­tions as re­stric­ted un­der para­graphs a) and b) above:trans­ac­tions to the be­ne­fit of Sanc­tioned Per­sons; trans­ac­tions provid­ing for the call at Rus­si­an ports of ves­sels owned and/or chartered by, for or on be­half of Sanc­tioned Per­sons; an­dtrans­ac­tions provid­ing for pay­ments or se­cur­it­ies trans­ac­tions in­volving and/or to the be­ne­fit of Sanc­tioned Per­sons.The re­stric­tions lis­ted above will ap­ply if Reg­u­lated Per­sons are aware that the ac­tions are taken to the be­ne­fit of Sanc­tioned Per­sons.The De­cree also im­poses a ban on the ex­port out­side of the Rus­si­an Fed­er­a­tion of products and/or raw ma­ter­i­als pro­duced and/or ex­trac­ted in the Rus­si­an Fed­er­a­tion if they are sup­plied to (i) Sanc­tioned Per­sons, and/or (ii) oth­er per­sons by Sanc­tioned Per­sons.Al­though the Reg­u­la­tion pro­hib­its trans­ac­tions with Sanc­tioned Per­sons only in the case of per­form­ance of the trans­ac­tions and op­er­a­tions un­der para­graphs a) to c) above, we be­lieve that, based on the De­cree, the list of Sanc­tioned Per­sons should also ap­ply for the pur­pose of pro­hib­it­ing rel­ev­ant ex­port op­er­a­tions (un­less oth­er­wise provided for in reg­u­la­tions or of­fi­cial cla­ri­fic­a­tions).Cer­tain trans­ac­tions with Sanc­tioned Per­sons may be al­lowed on the basis of spe­cial per­mits as may be pro­posed to the Gov­ern­ment by the Rus­si­an Min­istry of Fin­ance.We will con­tin­ue to mon­it­or these de­vel­op­ments and keep you in­formed of changes.* In Rus­si­an
En­sur­ing the sus­tain­able op­er­a­tion of air­craft and sup­port­ing Rus­si­an civil...
Re­cently ad­op­ted acts amend the pro­ced­ure for the re­gis­tra­tion of rights to and trans­ac­tions with air­craft, as well as the pro­ced­ure for per­form­ing agree­ments on the lease of for­eign air­craft and air­craft en­gines. The amend­ments were ad­op­ted as meas­ures to counter the ef­fects of in­ter­na­tion­al sanc­tions on Rus­si­an civil avi­ation.Amend­ments re­gard­ing the pro­ced­ure for re­gis­ter­ing air­craft and trans­ac­tions with such as­set­sOn 14 March 2022, Fed­er­al Law* No. 56-FZ amended the Rus­si­an Air Code and oth­er Rus­si­an le­gis­lat­ive acts (the “Law”).The Law has ves­ted the Rus­si­an Gov­ern­ment with the powers in 2022 to de­term­ine the pro­ced­ure of state re­gis­tra­tion of civil air­craft in the Rus­si­an State Re­gister of Civil Air­craft, the rights to and trans­ac­tions with air­craft. To im­ple­ment these powers, on 19 March 2022 the Gov­ern­ment ad­op­ted Reg­u­la­tion* 411.Reg­u­la­tion 411 es­tab­lishes the fea­tures of re­gis­tra­tion for civil air­craft owned by lessors from “un­friendly” for­eign states, the list of which is com­piled by the Gov­ern­ment, and op­er­ated by Rus­si­an less­ees. The list of the “un­friendly” states is com­prised of, in par­tic­u­lar, EU mem­ber states (in­clud­ing Ire­land), US, UK and Singa­pore.Thus it is no longer re­quired to provide for the pur­poses of re­gis­tra­tion of air­craft:doc­u­ments evid­en­cing the own­er­ship of the op­er­ated air­craft (the ap­plic­ants should only sub­mit cop­ies of the lease agree­ments); an­da doc­u­ment evid­en­cing the ex­clu­sion of the op­er­ated air­craft from the for­eign re­gister of the civil air­craft, provided that the ap­plic­ant sub­mits a no­tice or let­ter from the com­pet­ent au­thor­ity of the coun­try in which the air­wor­thi­ness cer­ti­fic­ate of the op­er­ated air­craft was can­celled or sus­pen­ded.In ad­di­tion, the Law has re­duced the term of state re­gis­tra­tion of rights to air­craft in Rus­sia from one month to ten days.Pro­ced­ure for per­form­ing ob­lig­a­tions un­der con­tracts on lease of air­craft and air­craft en­ginesPur­su­ant to the Law, on 19 March 2022 the Gov­ern­ment ad­op­ted Reg­u­la­tion* 412 spe­cify­ing the fea­tures of the per­form­ance of agree­ments on lease of the op­er­ated air­craft and air­craft en­gines op­er­ated by Rus­si­an less­ees and owned by lessors of the “un­friendly” states (the “Lease Agree­ments”). The pro­vi­sions of Reg­u­la­tion 412 ap­ply to Lease Agree­ments entered in­to be­fore 24 Feb­ru­ary 2022.Set­tle­ments un­der the Lease Agree­ments must be made in a spe­cial man­ner, namely Rus­si­an res­id­ents must make lease and oth­er pay­ments un­der the con­tracts provid­ing for the ac­quis­i­tion of, lease of air­craft, aux­il­i­ary power units and/or air­craft en­gines (the “Ob­lig­a­tions”) to for­eign per­sons (and their con­trolled per­sons, ex­cept for those re­gistered in Rus­sia) con­nec­ted with the “un­friendly” states (the “Re­stric­ted Per­sons”) by cred­it­ing funds in roubles to a type “S” ac­count opened with a Rus­si­an bank in the name of a lessor that is a Re­stric­ted Per­son.(For more de­tails, see our pre­vi­ous eAl­ert: “Rus­si­an Pres­id­ent signs de­cree on the tem­por­ary pro­ced­ure for pay­ments to cer­tain cred­it­ors”.)The Ob­lig­a­tions to com­pan­ies which are Re­stric­ted Per­sons will be deemed duly per­formed in 2022 if they are dis­charged to:some of their af­fil­i­ated res­id­ent com­pan­ies by trans­fer­ring funds to such a com­pany’s ac­count with a Rus­si­an bank or VEB.RF state cor­por­a­tion in roubles (re­gard­less of the cur­rency of the Ob­lig­a­tion) in the amount of the rouble equi­val­ent at the Bank of Rus­sia’s of­fi­cial ex­change rate as of the pay­ment date; and­some of their af­fil­i­ated non-res­id­ent com­pan­ies which are not Re­stric­ted Per­sons by trans­fer­ring funds in the na­tion­al cur­rency of the state of in­cor­por­a­tion of such com­pan­ies or in roubles (re­gard­less of the cur­rency of the Ob­lig­a­tion) in the amount of the rouble equi­val­ent at the Bank of Rus­sia’s of­fi­cial ex­change rate as of the pay­ment date.A de­tailed pro­ced­ure for mak­ing set­tle­ments un­der the Ob­lig­a­tions to the per­sons spe­cified above is set out in the rules es­tab­lished by Gov­ern­ment Reg­u­la­tion* No. 635 dated 11 April 2022.Oth­er pro­ced­ures for dis­char­ging ob­lig­a­tion­sThe Rus­si­an Gov­ern­ment Com­mis­sion for Con­trol over For­eign In­vest­ments is en­titled to is­sue per­mis­sions to dis­charge the Ob­lig­a­tions to Re­stric­ted Per­sons not in the spe­cial man­ner de­scribed above, but in ac­cord­ance with the pro­vi­sions of the con­tract or oth­er­wise.Ad­di­tion­al pro­vi­sions­Less­ees are ob­liged to en­sure the op­er­a­tion, main­ten­ance and re­pair of the op­er­ated air­craft, air­craft en­gines, in­sur­ance of the op­er­ated air­craft and re­in­sur­ance of the risks con­nec­ted with in­sur­ing the op­er­ated air­craft.The less­ee’s ex­port of the op­er­ated air­craft and air­craft en­gines out­side of Rus­sia is gen­er­ally pro­hib­ited sub­ject to cer­tain ex­cep­tions.We will con­tin­ue to mon­it­or these de­vel­op­ments and keep you in­formed of any changes.* In Rus­si­an
Rus­si­an Pres­id­ent signs de­cree on ad­di­tion­al counter sanc­tions meas­ures
On 18 March 2022, De­cree of the Rus­si­an Pres­id­ent No. 126* “On Ad­di­tion­al Tem­por­ary Eco­nom­ic Meas­ures to En­sure Fin­an­cial Sta­bil­ity of the Rus­si­an Fed­er­a­tion in the Sphere of Cur­rency Reg­u­la­tion” (the “De­cree”) entered in­to force.Ad­di­tion­al powers of the Cent­ral Bank of the Rus­si­an Fed­er­a­tion (the “CBR”)Un­der the De­cree, the Board of Dir­ect­ors of the CBR may lim­it the amount of:•       pre­pay­ments or ad­vance pay­ments made by non-res­id­ent leg­al en­tit­ies (oth­er than cred­it in­sti­tu­tions) un­der cer­tain con­tracts with for­eign res­id­ents: from 1 April 2022*, such pay­ment may not ex­ceed 30% of the amount of ob­lig­a­tions un­der con­tracts for the pro­vi­sion by a non-res­id­ent of ser­vices, per­form­ance of works, trans­fer of in­form­a­tion and res­ults of in­tel­lec­tu­al activ­it­ies, if the amount of ob­lig­a­tions un­der the con­tract ex­ceeds USD 15,000;   •    funds trans­fers from non-res­id­ent leg­al en­tit­ies re­gistered in the states lis­ted in Rus­si­an Gov­ern­ment De­cree No. 430-r dated 5 March 2022 (the “Un­friendly States”) or to ac­counts or banks and oth­er fin­an­cial mar­ket or­gan­isa­tions in the Un­friendly States; and   •    for­eign cur­rency that can be pur­chased by non-res­id­ent leg­al en­tit­ies in the do­mest­ic for­eign ex­change mar­ket: from 1 April 2022*, such en­tit­ies can­not pur­chase for­eign cur­rency.Any trans­ac­tions in ex­cess of such lim­its must be ap­proved by the Gov­ern­ment Com­mis­sion for the Con­trol over For­eign In­vest­ments in the Rus­si­an Fed­er­a­tion (the “Com­mis­sion”).Ad­di­tion­ally, un­til 31 Decem­ber 2022*, res­id­ents will have to ob­tain per­mis­sions from the CBR to pay for a share, con­tri­bu­tion, or unit in the as­sets of a non-res­id­ent leg­al en­tity or a con­tri­bu­tion to a non-res­id­ent un­der a simple part­ner­ship agree­ment with in­vest­ments in the form of cap­it­al con­tri­bu­tions (a joint ven­ture agree­ment).The CBR may also al­low* res­id­ents to sell for­eign cur­rency pro­ceeds with­in more than three busi­ness days or not to sell for­eign cur­rency pro­ceeds that will be ap­plied for the dis­charge of ob­lig­a­tions in for­eign cur­rency un­der fa­cil­ity agree­ments with Rus­si­an banks (it is also pos­sible to sell less than 80% of the total amount of for­eign cur­rency pro­ceeds on the basis of the Com­mis­sion’s per­mis­sion).Dis­charge of ob­lig­a­tions un­der bank ac­count (de­pos­it) agree­ments entered in­to with cer­tain bank­sUntil 1 Septem­ber 2022, ob­lig­a­tions in for­eign cur­rency un­der bank ac­count (de­pos­it) agree­ments entered in­to by res­id­ent leg­al en­tit­ies with cred­it in­sti­tu­tions in re­spect of which re­strict­ive meas­ures have been in­tro­duced by the Un­friendly States after the oc­cur­rence of such ob­lig­a­tions are deemed duly per­formed if they are dis­charged in Roubles.Cla­ri­fic­a­tions of pre­vi­ous de­creesThe De­cree also con­tains some cla­ri­fic­a­tions on the ap­plic­a­tion of De­crees 79* and 81*.The De­cree per­mits cred­it­ing for­eign cur­rency to ac­counts or de­pos­its of of­fi­cial rep­res­ent­at­ive of­fices of the Rus­si­an Fed­er­a­tion, rep­res­ent­at­ive of­fices of fed­er­al ex­ec­ut­ive bod­ies, for­eign rep­res­ent­at­ive of­fices and branches of res­id­ent leg­al en­tit­ies, and their em­ploy­ees that are opened with for­eign banks and fin­an­cial in­sti­tu­tions without ob­tain­ing the Com­mis­sion’s per­mis­sion, which is re­quired un­der De­crees 79 and 81 for cred­it­ing by res­id­ents of for­eign cur­rency to their ac­counts (de­pos­its) opened with for­eign banks and oth­er fin­an­cial or­gan­isa­tions.Also, the re­quire­ments of De­cree 79 on the sale of for­eign cur­rency pro­ceeds do not ap­ply to for­eign cur­rency cred­ited in con­nec­tion with im­ple­ment­ing pro­jects re­lated to the pro­duc­tion of li­que­fied nat­ur­al gas in the Rus­si­an Arc­tic to the ac­counts of or­gan­isa­tions that im­ple­ment such pro­jects.In ad­di­tion, not­with­stand­ing the re­quire­ments of De­cree 81, it is now pos­sible to grant loans and cred­its to res­id­ents who are con­trolled by per­sons from the Un­friendly States without ob­tain­ing the Com­mis­sion’s per­mis­sion.Ex­emp­tions for per­sons con­trolled by Rus­si­an be­ne­fi­ciar­ies­For the pur­poses of the De­cree, per­sons con­trolled by Rus­si­an be­ne­fi­ciar­ies (leg­al and nat­ur­al per­sons), in­clud­ing through for­eign per­sons, are not re­cog­nised as per­sons re­lated to the Un­friendly States, if in­form­a­tion on such con­trol is dis­closed to the Rus­si­an tax au­thor­it­ies.We will con­tin­ue to mon­it­or these de­vel­op­ments and keep you in­formed of any fur­ther changes.* In Rus­si­an
Bill in­tro­duced in Rus­si­an State Duma al­low­ing sus­pen­sion and ter­min­a­tion...
On 22 March 2022, Pavel Krashe­n­in­nikov, Head of the State-build­ing and Le­gis­la­tion Com­mit­tee of the Rus­si­an State Duma, sub­mit­ted a bill*, which makes it pos­sible to ter­min­ate and sus­pend ob­lig­a­tions due to sanc­tions im­posed on Rus­sia. The bill also es­tab­lishes the pos­sib­il­ity for parties to be re­leased from li­ab­il­ity for breach of con­tract.The fol­low­ing de­scribes this le­gis­lat­ive ini­ti­at­ive in more de­tail:Ter­min­a­tion of ob­lig­a­tion­sAc­cord­ing to the bill, an ob­lig­a­tion is ter­min­ated in full or in part if its per­form­ance “ob­ject­ively be­comes defin­it­ively im­possible” “in the con­text of ‘un­friendly’ ac­tions of for­eign states and in­ter­na­tion­al or­gan­isa­tions as­so­ci­ated with the im­pos­i­tion of re­strict­ive meas­ures” against Rus­si­an in­di­vidu­als and com­pan­ies (i.e. for­eign sanc­tions).Ex­emp­tion of li­ab­il­ity for breach of ob­lig­a­tion­sThe bill provides an ex­emp­tion from li­ab­il­ity for a breach of ob­lig­a­tion for a per­son who proves that prop­er per­form­ance has “ob­ject­ively proved to be tem­por­ar­ily im­possible” in the con­text of for­eign sanc­tions. In this case, the ob­lig­a­tions se­cur­ing the de­faul­ted trans­ac­tion are also un­en­force­able un­less the parties agree oth­er­wise after the bill comes in­to force.Ter­min­a­tion of con­tractThe bill in­tro­duces the right to uni­lat­er­ally ter­min­ate a con­tract if the oth­er party to the con­tract has not per­formed, or per­formed im­prop­erly, its ob­lig­a­tion be­cause such per­form­ance is tem­por­ar­ily im­possible in the con­text of sanc­tions. The party au­thor­ised to do so must give a ter­min­a­tion no­tice to the oth­er party with­in a reas­on­able time. The col­lat­er­al se­cur­ing the ob­lig­a­tions of the parties, which shall sur­vive the uni­lat­er­al ter­min­a­tion of the con­tract or are con­nec­ted with the ter­min­a­tion, shall con­tin­ue to ex­ist, un­less oth­er­wise provided for by law or the con­tract.Se­cur­ity de­positThe bill sub­stan­tially mod­i­fies the treat­ment of se­cur­ity pay­ments.  Un­der this draft law, after 23 Feb­ru­ary 2022, the parties may enter in­to an agree­ment for a se­cur­ity pay­ment to se­cure oth­er ob­lig­a­tions. The pay­ment could con­sist of the de­pos­it of shares, bonds, oth­er se­cur­it­ies or gen­er­ic items.Re­pay­ment by Rus­si­an joint-stock com­pan­ies of loans is­sued by their for­eign con­trolling per­son­sThe bill en­titles Rus­si­an joint-stock com­pan­ies, in­stead of re­pay­ing a loan to lenders who are for­eign con­trolling per­sons of such com­pan­ies, to place ad­di­tion­al shares of a cer­tain cat­egory or type in fa­vour of such lenders. At the same time, joint-stock com­pan­ies are al­lowed to is­sue pref­er­en­tial shares whose nom­in­al value may ex­ceed 25% of the share cap­it­al.The bill does not re­quire proof of a caus­al link between the im­pos­i­tion of sanc­tions and the de­cision to place ad­di­tion­al shares in fa­vour of a lender in­stead of re­pay­ing the loan and pay­ing in­terest on it.Pro­tec­tion not for al­lAc­cord­ing to the bill, the above sup­port meas­ures do not ap­ply to per­sons who “con­trib­uted to the ‘un­friendly’ ac­tions of for­eign states and in­ter­na­tion­al or­gan­isa­tions re­lated to the im­pos­i­tion of re­strict­ive meas­ures” against Rus­si­an in­di­vidu­als and or­gan­isa­tions. The bill does not cla­ri­fy ex­actly what is meant by “con­trib­ut­ing”.Let­ter from the Cham­ber of Com­merce and In­dustry of the Rus­si­an Fed­er­a­tion­In con­nec­tion with the bill, the Cham­ber of Com­merce and In­dustry of the Rus­si­an Fed­er­a­tion has sus­pen­ded its re­view of ap­plic­a­tions for the is­su­ance of find­ings of force ma­jeure un­der con­tracts that were con­cluded with­in the frame­work of do­mest­ic eco­nom­ic activ­ity in con­nec­tion with sanc­tions on for­eign com­pon­ents and equip­ment (Let­ter No. PR/0181* of the Cham­ber of Com­merce and In­dustry of the Rus­si­an Fed­er­a­tion dated 22 March 2022).* In Rus­si­an
Rus­si­an Pres­id­ent signs de­cree on the tem­por­ary pro­ced­ure for pay­ments...
On 5 March 2022, the Rus­si­an Pres­id­ent signed De­cree* No. 95 “On the Tem­por­ary Pro­ced­ure for Dis­charge of Ob­lig­a­tions to Cer­tain For­eign Cred­it­ors” (“De­cree No. 95”), which es­tab­lishes a tem­por­ary...
CMS Rus­sia earns a re­cord num­ber of re­cog­ni­tions by Best Law­yers 2022
Strong re­cog­ni­tion by the rank­ing 32 CMS Rus­sia ex­perts have been se­lec­ted for in­clu­sion in­to the 2022 edi­tion of the Best Law­yers rank­ing. In total, we have earned 74 re­cog­ni­tions by the rank­ing :Ant­on...
Lend­ing in Rus­sia
In this chapter of Do­ing busi­ness in Rus­sia, we set out a brief dis­cus­sion on cer­tain mat­ters re­lated to lend­ing to com­pan­ies in Rus­sia, by banks and oth­er com­pan­ies, with par­tic­u­lar fo­cus on for­eign cur­rency and se­cured lend­ing.
Cur­rency con­trol
In this chapter of Do­ing busi­ness in Rus­sia, we out­line the reg­u­la­tion of for­eign cur­rency trans­ac­tions and the sanc­tions for breach of cur­rency con­trol rules.
Cor­por­ate bank­ruptcy
The dis­cus­sion in this chapter of Do­ing busi­ness in Rus­sia fo­cuses on the Rus­si­an bank­ruptcy re­gime ap­plic­able to com­pan­ies and also men­tions spe­cif­ic fea­tures of the re­gime ap­plic­able to cred­it in­sti­tu­tions.
CMS Rus­sia in The Leg­al 500 EMEA 2021
The 2021 edi­tion of The Leg­al 500 EMEA re­cog­nises CMS Rus­sia across 10 prac­tice areas and hon­ours 10 firm ex­perts CMS Rus­sia has been ranked this year in the fol­low­ing 10 cat­egor­ies:Bank­ing & Fin­ance:...