News Archieven - Page 5 of 9

Chairman of AEB Council

Posted on 21-04-202029-04-2020 by Anna-Marie Dobbelstein

Congratulations to Lodewijk! The AEB Council of National Representation (“CNR”) re-elected Juralink’s managing partner Lodewijk Schlingemann as its Chairman.

The Association of European Businesses is the main representative body of European foreign investors in Russia. Its 500 plus European and Russian member companies are committed to boosting cooperation between the EU and Russia, and improving the investment climate of the Russian Federation. The CNR acts as the advisory and consultative body to the Board.

Force majeure certificates issued by the Russian Chamber of Commerce

Posted on 17-04-202021-04-2020 by Anna-Marie Dobbelstein

Foreign companies who cannot (timely) fulfil their contractual obligations to a Russian partner due to COVID-19 may obtain a force majeure certificate from the Russian Chamber of Commerce and Industry.

This certificate will serve as evidence that the non-performing party cannot be held liable for any damages or penalties as a result of its late or non-performance.

The Chamber of Commerce and Industry (‘CCI’) grants the force majeure certificate only in regard to the liabilities arising from contractual obligations and having occurred on the territory of Russia. The basis of the force majeure circumstances is not the coronavirus epidemic itself, but legal measures implemented by the Russian authorities, which contain direct prohibitions and restrictions and, in this regard, make it impossible for the parties to fulfil their obligations.

Measures restricting access to Russia in an effort to combat the virus are recognized as circumstances of force majeure. Such measures make it temporarily impossible for foreigners to enter the Russian Federation for performance of installation, maintenance, repair and other services under a contract. Other circumstances cannot be attributed to force majeure, but are considered normal entrepreneurial risks, in particular: deterioration of the economic condition of the enterprise, a change in the exchange rate, and the devaluation of the national currency.

A force majeure certificate can be obtained by filing a request with the CCI. It requires the submission of an application, accompanied by the complete contract and addendums hereto, as well as the detailed argumentation referencing all force majeure circumstances with evidence thereof from relevant authorities. The application shall be in Russian, and can be submitted via an authorized representative.

The Russian CCI in Moscow issues force majeure certificates specifically for international transactions. It is making special efforts to review all applications.

Please note, that even if invoking force majeure releases a party from liability (for damages and penalties) for (partial) non-performance of contractual obligations, it must still perform its obligations as soon as the circumstances of force majeure have ended. A right of termination of the contract exists only if explicitly stipulated in the contract. Any issues with relation to the fulfillment of contractual obligations and other impact of force majeure to a specific contract must be decided by court.

We will be happy to assist you.

Russian borders closed until May: consequences for HQS

Posted on 06-04-202025-05-2020 by Anna-Marie Dobbelstein

Due to COVID-19, the Russian borders will remain closed until May. This can have consequences for foreigners with a Highly Qualified Specialist (HQS) status, both inside and outside Russia.

In general, HQS visa holders staying in Russia now have the possibility to extend their visa and registration for up to 90 days, but the situation is a bit more complicated for HQS visa holders stuck abroad. These individuals will not be able to return to Russia until 1 May 2020. And this date can still be extended by the Russian Ministry of Internal Affairs.

In order to maintain the HQS status of their foreign employees, the employers will need to continue paying the agreed salary (min. RUB 167,000 gross per month). Even so, if an employee stays abroad for six months or longer, the Russian government can annul his work permit.

The Ministry of Labour of the Russian Federation has the view that remote work from abroad cannot be permitted because employers cannot guarantee safe working conditions and because such remote work is not explicitly permitted under the Russian labour legislation.

To enable foreign employees of a Russian entity to work from abroad legally nonetheless, the employer must ensure that all adequate internal documents are in place.

Many different factors must be taken into account for each specific case, and each of them will require different documents:

Are they able to work from another country? Then, an agreement on transfer to remote work should be signed.
Can they be transferred to another position? Then, an order on temporary transfer to another position should be issued.
What are the reasons for the foreign employee to be abroad? (business trip, vacation, force majeure, etc.) Then, an order on the extension of such reason must be provided.

If you have any HQS employees staying outside Russia now, waiting to get back, do not hesitate to contact us for assistance with the documentation and solid advice!

Remote working requires addition to the employment contract

Posted on 30-03-202023-06-2020 by Anna-Marie Dobbelstein

The Russian Ministry of Work has given explanations about work during the non-working “quarantine days” announced by president Putin. Remote working does require signature of a an addition to the employment contract by employer and employee.

The transition to remote working can temporarily be done via electronic exchange of employment documentation with the employees. If necessary, hard copies can be executed afterwards. This allows companies which did not organize remote working yet to continue work. At all times, the employees should respect the quarantine requirements implemented for the prevention of coronavirus infection.

Please contact us, if you have any questions how to organize the implementation of remote working in your Russian company.

Increase of dividend withholding tax to 15%

Posted on 27-03-202023-06-2020 by Anna-Marie Dobbelstein

Prime Minister Mikhail Mishustin gave the Russian Ministry of Finance one month to review all double taxation agreements (DTAs) for increase of dividend withholding tax to a minimum of 15%. This follows from President Putin’s speech on March 25 mentioning the increased rate.

Vladimir Putin took this decision with reference to a more fair distribution of incomes, and presumably as higher taxation would allow state support of those individuals and companies suffering from Covid-19.

Raising the rate to 15% is in conflict with agreements made between Russia and partner-countries in bilateral DTAs. Russia has more than a hundred DTAs. In case of refusal of DTA partner-country to make changes, Russia envisages to unilaterally withdraw from such DTA. The result would be that, a company paying dividends abroad will need to withhold and pay taxes for its shareholders at no less than 15%.

We urge you to contact us asap to review the issue of dividend distribution in your annual general meeting of shareholders which is due by April 30, 2020.

President Putin announced non-working “quarantine days” and economic measures

Posted on 26-03-202025-05-2020 by Anna-Marie Dobbelstein

On March 25, president Putin issued Decree No. 206 on additional non-working days from March 30 to April 3, 2020, with employees maintaining their wages. This measure is intended to slow the spread of the coronavirus by encouraging people to stay at home.

This Decree does not apply to employees of the following vital categories:

(a) Continuously operating organizations;

(b) Medical and pharmacy organizations;

d) Organizations performing urgent work under extraordinary circumstances;

e) Organizations carrying out urgent repair and handling operations.

If a company falls into one of the categories on the list, employees are not entitled to the additional days-off. From March 30 to April 3, 2020, they shall work as usual. Employers will not be required to issue any special work order for work on the weekend nor to obtain consent of the employee.

We believe that the President’s Decree must be implemented, since it is binding on the territory of the Russian Federation under the Constitution. Having employees work during the specified period can, given the extraordinary nature of the current situation, result in liability. Liability could be:

– Administrative: fine up to 30,000 rubles or suspension of activities for up to 90 days;

– Criminal: deprivation of liberty for one up to five years.

In his speech on March 25, Vladimir Putin also announced the implementation of economic measures such as:

A reduction of social payments for small and medium-sized businesses from 30% to 15%;
Sick leave payments in the amount of one minimum wage until the end of the year;
A deferral of taxes (except VAT) for small and medium-sized businesses;
A six-month moratorium on filing bankruptcy applications;
A 13% tax on interests received by citizens having total deposits in excess of 1 million rubles;
An increased dividend tax of 15% instead of 2%.

Please let us know if you have questions about non-working days, applicable salaries or other measures.

Issue of work permits resumed, visa extended

Posted on 20-03-202020-03-2020 by Anna-Marie Dobbelstein

MIA of Russia: applications for work permits resumed and all categories of visas extended from March 19 due to the spread of COVID-19.

From 19 March, foreign nationals will be granted an extension of their temporary stay in the Russian Federation. All categories visas and temporary stays (for foreigners who don’t need a visa) can be extended. This is also true for those with visas that have already expired.

To do so, foreign citizens must apply to the nearest territorial body of the Ministry of Internal Affairs of the Russian Federation with a statement drawn up in an arbitrary form.

Temporary residence permits and residence permits can also be extended if they expire.

In addition, the Ministry of Internal Affairs of Russia (‘MIA’) resumes the receipt of applications for authorization to hire foreign workers and work permits for foreign nationals that are already on the territory of Russia. Applications for foreign citizens abroad are still suspended.

Also, migrant workers may apply for new patents without traveling outside Russia and without being liable if they fail to respect the deadline for submitting such applications.

For your reference: https://мвд.рф/contacts/presscenter/comments/item/19813472 (only in Russian)

Access to Russia and visa for foreigners suspended

Posted on 18-03-202023-06-2020 by Anna-Marie Dobbelstein

From March 18, 2020 until May 1, 2020 there will be very severe restrictions for entry of foreigners into the Russian Federation. This measure is taken to prevent the spread of Covid-19. It is set out in the Russian Government Order № 635-Р issued on March 16, 2020.

Foreign business travellers, tourists and foreign family members will not be permitted to enter the Russian Federation, and this also applies to entry via Belarus and to citizens of Belarus.

Also, the Ministry of Foreign Affairs of the Russian Federation temporarily suspends the acceptance of documents, execution and issuance of all categories of visas to foreign citizens and stateless persons.

Some categories of foreigners are exempted from the Order, such as diplomats, representatives of international organizations and their family members, people working in international road, rail, maritime and air transport and people visiting for the funeral of a close relative.

Persons with permanent residence in Russia can also return back home.

The Ministry of Internal Affairs of Russia and its territorial bodies likewise temporarily put on hold the acceptance of applications, execution and issuance of:

– invitations to enter the Russian Federation, and

– work permits for these citizens.

Please contact us if you require more information.

For your reference: Order 635-р (Russian only): http://publication.pravo.gov.ru/Document/View/0001202003170002

Invoking force majeure due to Coronavirus- Certificate Chamber of Commerce

Posted on 18-03-202009-04-2020 by Anna-Marie Dobbelstein

The coronavirus has a huge impact on trade between international parties. Closure of production facilities, logistical restrictions and unavailability of staff can make it difficult to fulfil your contractual supply obligations in time. You may then invoke the force majeure clause in your contract. Depending on the definition of force majeure, the coronavirus may or may not be considered a circumstance of force majeure. Contracts under Russian law almost standard include a force majeure clause. Dutch law contracts not always.

But even if you have no force majeure provision in your supply contract, there can be a way out. Contractual non-performance (e.g. non-delivery) is not always attributable to the debtor. A non-performance cannot be attributed to the debtor if he is not to blame for it nor accountable for it by virtue of law, a juridical act or generally accepted principles (common opinion) (Article 6:75 Dutch Civil Code). In principle, performance of a contractual obligation cannot be required from a party that is subject to circumstances of force majeure. Nor can compensation be claimed.
It is however required that the circumstances of force majeure are so serious that contractual performance is considered impossible for the non-performing party. This means that performance is absolutely / physically impossible, or that performance is so burdensome that it cannot reasonably be demanded from the non-performing party. The debtor will have to demonstrate this by appealing to all circumstances of the case. If the other party disagrees with this, the debtor will have to apply for a decision of an arbitration institution or court.

In Russia, too, the burden of proof lies with the debtor *. The Russian government has the right to recognize special circumstances as force majeure for state transactions and certain currency transactions**, but has not done this so far for the COVID-19 virus.

Would you like to know more about the obligations of a debtor and force majeure under Russian law? We can help you obtain a certificate from the Chamber of Commerce to proof that you are not liable for non-performance of obligations. This can save you a lot of money for damages and (in Russia commonly used) fines for non-compliance.

You may refer to the RVO website for other information (in Dutch) https://www.nederlandwereldwijd.nl/landen/rusland/reizen/reisadvies .

CONTACT

* Paragraph 5 of the Decision of the Plenum of the Supreme Council of the Russian Federation dated 24 March 2016, Nr. 7.

** Art. 111 of the Federal law of 5 April 2015 Nr. 44-FZ “On the contract system in the area of purchases of goods, works and services for state and municipal needs.

Juralink – COVID-19 measures

Posted on 16-03-202003-05-2021 by Anna-Marie Dobbelstein

Dear clients and partners,

In the fight against the spread of the COVID-19 virus, the Moscow authorities have taken several precautionary measures (for more information: https://www.mos.ru/city/projects/covid-19/).

Juralink has also taken health and safety measures. That is why starting from today, we will mainly be working remotely. Therefore, please be advised that the signing of original documents will be held once a week – on Thursday.

We are doing everything we can to make sure that our availability and quality level will not suffer from this measure.

You can check our website for updates about our situation and any legal advice related to the circumstances.

We remain at your disposal for any questions.

Best regards,

Juralink

Category: News