Crisis Management, Economic sanctions and Compliance
Our team advises Russian and foreign clients across all industries on the most significant and sensitive Russian sanctions, as well as their impact and effect in light of sanctions from the US and EU. We position ourselves as a business-oriented firm that provides our clients with superb and efficient legal advice that enables them to achieve their business objectives.
As a full services independent law firm, we are uniquely positioned to assist our clients in responding to the most sensitive and significant inquiries from regulators and dive deep into our clients’ business (with a full understanding of our clients’ business model and the most essential areas of their commercial activities) to provide them with only the most relevant and practical legal advice. Our practice also encompasses regulatory advice, compliance counseling and other various due diligence issues. In addition, we represent clients in the commercial disputes related to the impact of sanctions on business matters and advises clients on possible ways to resolve sanctions disputes.
In collaboration with our Best Friends network, which includes top-tier law firms all over the world, including major jurisdictions of the US, all EU members and all APAC countries, we are capable of providing our clients with the most thorough and extensive legal advice and cover regulations in key jurisdictions.
Areas of expertise:
A targeted analysis of the impact of economic sanctions and permanent monitoring of current developments. This is a purely unique service that we provide to our clients, which enables them to navigate the various economic sanctions and updates to restrictions and to receive only the most relevant and important updates that impact their business. Instead of general and sometimes irrelevant updates, we provide our clients with targeted, practical legal advice and proposals.
Withdrawing from and restructuring Russian assets. Our team has unique expertise in assisting clients with urgently withdrawing from Russian assets or restructuring ownership in Russian assets to comply with the economic sanctions. With our assessment of practical risks and various practices available at our firm, we are committed to providing our clients with legal advice, while prioritizing quality, efficiency and speed.
Applying for permits under the new counter-sanctions FDI regime. We have unique experience in the new FDI regime, which has been established as part of Russian counter-sanctions measures. We help our clients understand what actions require a permit to be granted under the new procedure (e.g. repayments of loans, transactions with shares and real estate) as well as apply for a permit in the most efficient way.
Sanctions Screening and Due Diligence. Our experienced team is ready to assist our Clients with various sanctions screening and due diligence, using our unique internally created sanctions due diligence tool, as well as major sanctions screening due diligence checks services. Our expertise and Russian presence allow us to complete various checks and enquiries with respect to Russian parties to make sure our foreign clients have done all actions necessary to verify their counterparty’s identity and its compliance with foreign sanctions. Our international approach allows us to engage the most qualified sanctions experts in a various jurisdictions and deliver to our Clients the most comprehensive analysis.
Sanctions disputes. Currently, sanctions have a significant impact not only on the fulfillment of obligations, but also on the dispute resolution procedure itself, including the enforceability of arbitration and jurisdiction agreements and the determination of the competent forum. In this connection, the impact of the sanctions should be taken into account from the very beginning, even when structuring the relations of the parties. Our team has significant experience in advising clients on the best way to resolve disputes with sanction element in each specific situation taking into account the novelties of the Russian procedural legislation, which by default establish the exclusive jurisdiction of Russian courts in relation to sanctions disputes. Also, we have profound experience in representing clients in disputes related to the impact of both foreign and Russian sanctions and countersanctions including application of anti-suit injunctions.
Developing internal policies for compliance with various economic sanctions, and assisting clients with sanctions compliance issues and contract-related disputes.
Regulatory insight. We have an unparalleled understanding of the legal and policy underpinnings of Russian counter-sanctions and AML/CFT regulations as well as the impact of foreign sanctions on the operations of our clients in Russia. Our team has significant experience communicating with the Central Bank of the Russian Federation, the Federal Financial Monitoring Office, the Federal Tax Office and the Federal Antimonopoly Service and representing our clients before these agencies. We have strong insight into the background and factors that motivate these agencies’ enforcement and other regulatory decisions. Our experience enables us to assist clients with anticipating emerging regulatory and enforcement trends.
Regulatory advice and compliance counseling. Our primary goal is to assist our clients in complying with regulatory requirements while avoiding unnecessary complications. Our team has advised numerous foreign and Russian clients on a broad range of sanctions and AML/CTF matters, including complicated issues regarding particular transactions and managing or restructuring existing business relations. We recently helped our clients with navigate the changing legal environment due to the foreign sanctions imposed on Russia as well as the Russian counter-sanctions, including restrictions on loans and currency exchange. We also have experience developing and updating compliance policies and implementing risk management plans. Our team has successful experience obtaining approvals from the Government Commission for Control over Foreign Investments as well.
Termination or suspension of contractual obligations with Russian business partners. Our clients (including their Russia-based affiliates and branches) have faced situations where they urgently need to suspend or terminate their business relations with Russian companies due to sanctions and restrictions imposed by the governments of the United States, United Kingdom, European Union and other countries. Our team has the experience needed to advise Russian and international clients on what options are available for suspending/terminating contractual relations with their partners in light of the current geopolitical situation with due consideration given to the specifics of law enforcement practices in Russia.
Human resource crisis management. We provide our clients with comprehensive support on all issues related to human resource crisis management. The extent of our experience and expertise allows us to promptly and proactively help our clients from completely different industries, from preparing communications to implementing the most out-of-box solutions in human resources. Given our experience in building cross-border labor relations, we help our clients deal with relocation, remote work and international team management. We provide support in suspending and terminating employment relations, defend clients in court and defend them before the state authorities in the most difficult situations.
Advice on the scope and application of foreign and Russian sanctions as well as on export control and embargo issues. We help our clients to navigate through ever-changing economic sanctions and restrictions, analyse and adjust their businesses considering the existing trade restrictions (embargo and export control) applicable to their products both from Russian and from other countries’ perspectives.
Assistance in obtaining licenses/permits from foreign regulators as well as in unfreezing of assets. Our team is ready to help with preparation of a package of documents and interaction with the US, EU and UK sanctions authorities in order to obtain licenses for transactions/operations and to unfreeze assets.
Due diligence of counterparties and transactions with respect to sanctions risks and analysis of influence of sanctions on contractual obligations. Our specialists are ready to conduct due diligence for counterparties on Russian and foreign sanctions lists and comprehensive compliance checks using our unique due diligence methods and mechanisms. Moreover, we help with the analysis of the existing contractual obligations of the parties, development of an optimal strategy, as well as negotiations thereof with counterparties.
Assistance with lifting EU, US and UK sanctions and representation in sanction disputes. Our team helps to analyse the initial reasons for imposing sanctions against a client, develops arguments and steps to delisting, and also provides support in interaction with foreign regulators during the sanctions relief procedure. Our team has significant experience in advising clients on the best way to resolve disputes that are complicated by the sanctions component.
Discover our insights
Highlights of our projects include advising:
VEON
on the sale of VimpelCom to Russian top management for RUB 130bn.
Ball Corporation
on the sale of its Russian companies, which are the largest producers of aluminium cans for drinks, as well as on the approval of the transaction with FAS Russia and the Government Commission.
AmRest Group
the largest independent chain restaurant operator in CEE, on the sale of its business in Russia under KFC franchise with over 200 restaurants for EUR 100m.
Kerry Group
one of the leading producers of food additives and components on the sale of its Russian businesses to a local management, including advising on structuring matters of post-disposal supplies to Russian and Belorussian markets.
Purchaser of Willis Tower Watson
one of the world's largest publicly traded insurance brokers, on the acquisition of Russian businesses.
A major international bank
on the loan swap transaction entered into with one of the state banks in Russia for the amounts exceeding EUR 750m, including on related Russian counter-sanctions restrictions and permits from Russian authorities for the transaction.
Publicis Group
one of the largest communications group in the world, a leader in marketing, communication and digital business transformation, in the transaction on exit from Russia via MBO (management buy-out) as well as on foreign and Russian sanctions compliance when dealing with Russian entities / businesses.
Top US and EU banks and financial institutions
on compliance with the Russian counter-sanctions imposed in 2022 and the restructuring of their assets/financial documentation and policies.
A European-based company with US ownership
on compliance of the client’s measures (in accordance with the requirements of US and EU sanctions legislation) with Russian counter-sanctions as well as possible risks for the client and ways to mitigate them.
Various Russian and foreign entities
in connection with the suspension/restructuring of their Russian business due to the sanctions.
One of the largest telecommunications operators in Russia
on application of Russian counter-measures and necessity to get approval for certain operations from the Government Commission for Control over Foreign Investments.
A prominent Russian charitable foundation
as part of due diligence on their internal compliance system, where our assistance included developing and introducing a new comprehensive compliance system as well as communication with donors and the state authorities, taking into account best global practices as well as local specifics.
A worldwide producer of industrial gases and equipment
on the liability of the company, its management and regular employees for violating Russian counter-sanctions legislation, and we also provided a preliminary assessment of measures that aim to avoid/mitigate the respective risks.
One of the world’s leading financial analytics
with regard to the drafting of new Russian counter-sanctions, their content and possible influence on the client’s business, including possible consequences for the client’s participation in state procurements.
A global telecommunications operator
on application of Russian counter measures with regard to loan agreements.
We provided monthly updates on amendments to the list of Russian counter-sanctions and also advised the client, which is an international agri-tech company
on the preparation of new sanctions-related legislation and its possible influence on the client’s business.
We conducted an internal investigation into the Russian division of a French consumer goods manufacturer (FMCG) listed on the New York Stock Exchange.
During the investigation, we analyzed possible corrupt practices and whether the US Foreign Corrupt Practices Act (FCPA) could apply, with an analysis of the risks of fraud in procurements, accounting, interviewing employees and coordinating the work of the computer technology team.
Several international pharmaceutical companies
with regard to the imposition of new Russian counter-sanctions on the import and export of pharmaceutical products, including potential exceptions, the impact on supply chains and ways to mitigate this impact.
A large international company
on the applicability of the US Foreign Corrupt Practices Act of 1977 in Russia, and we developed an internal policy for them under applicable anti-corruption laws, taking into account the provisions of foreign laws, in particular the FCPA.
A major foreign commercial bank
on how to prevent fraudulent activities by the company’s employees and shareholders, including an audit of possible risks associated with fraud, and we identified signs of fraud in several commercial transactions and also performed a detailed analysis of possible fraudulent activities and ways to mitigate risks.
A leading business software developer
on the suspension and termination of their license and technical support agreements with Russian-based customers in light of the client’s inability to render further services and support due to sanctions preventing the business from operating on the Russian market.
A foreign animal food producer
on the impact of Russian counter-measures.
Several luxury brands
on the suspension/termination of supplies to and the operation of local stores in Russia.
One of the largest Russian banks,
on filing of documents for the release of assets in Euroclear and Clearstream, including preparation and analysis of the necessary documents, the management structure and beneficiaries, and the requirements to the guarantor and further obligations with respect to the relevant assets.
A major pharmaceutical company
on sanctions risks related to engagement of a potentially sanctioned investor to a new project of the client.
A private Russian individual,
in the process of lifting personal sanctions imposed by the EU, Switzerland and the UK, which included developing defence strategy, obtaining evidence, as well as preparing procedural and other documents within administrative and judicial procedures to challenge sanctions designation.
A major industrial holding
on the consequences of a company being included into the SDN list for its business in Russia and the CIS, the preparation of arguments for counterparties on this issue and the analysis and development of an optimal strategy for the release from the US sanctions.
A Russian technology holding
in the course of negotiations with a counterparty to continue deliveries of the equipment that the counterparty had suspended due to the risk of violating the US sanctions.
.png)
