Practices
Industries

The Constitutional Court of the Russian Federation Prohibited Employers from Concluding Fixed-Term Employment Contracts with Heads of Structural Subdivisions of Organisations

28 December 2023

On 19 December 2023 the Constitutional Court of the Russian Federation issued Resolution № 59-P/2023 “On the Case Concerning the Verification of the Constitutionality of Paragraph Eight of Part Two of Article 59 of the Labour Code of the Russian Federation in Connection with the Complaint of Citizen E. A. Selkova” (hereinafter - the “Resolution”).

Transactions Involving Intellectual Property May Require Prior Permission of the Government Commission

15 December 2023

The Russian Ministry of Industry and Trade has drafted amendments to Presidential decree No. 81 of March 1, 2022 (the "Decree"), which would extend the special procedure for transactions established by the Decree to transactions involving intellectual property. The draft is currently at the stage of anti-corruption expertise.

In accordance with the current version of the Decree, certain types of transactions with persons from "unfriendly" countries may be carried out only on the basis of permits issued by the Government Commission for Monitoring the Implementation of Foreign Investments in the Russian Federation (the "Government Commission").

Personal Data Leak – A Problem To Be Solved

15 December 2023

According to the Group-IB research, last year the amount of publicly released databases of Russian companies six times outnumbered those unlawfully made public in 2021. At the same time, special provisions, regulating liability for personal data leaks, are not foreseen neither in the Code of Administrative Offenses of Russia nor in the Criminal Code.

Therefore, on 4 December 2023, the draft laws No. 502104-8 “On Amendments to the Code of Administrative Offences of the Russian Federation” (“draft law No. 502104-8") and No. 502113-8 “On Amendments to the Criminal Code of the Russian Federation” (“draft law No. 502113-8”), providing toughening liability for personal data leakage, were submitted to the State Duma.

According to the explanatory notes to these draft laws, currently existing liability is disproportional and incomparable to the potential social harm which can personal data leakage result in.

Judicial Practice on Challenging Restriction Measures: Main Trends

30 November 2023

Recently the judicial practice on challenging sanctions imposed on Russian persons has begun to shape. We have already written about the first successful case with the participation of Russian person Dmitry Ovsyannikov, the former governor of Sevastopol, who managed to have himself excluded from the sanctions list.

Since that case was decided in February 2023, the sanctions removal practice has enriched by several other notable cases.

The Withdrawal from The Russian Market Has Resulted in Multimillion-Dollar Lawsuits for IT-Companies

10 November 2023

Over the past two years, the number of arbitration disputes on the recovery of unjust enrichment from foreign IT-companies has increased significantly. For the period from 2022 to 2023, according to the Arbitration Case File, dozens of claims were filed by Russian legal entities against the largest foreign software manufacturers: IBM Eastern Europe/Asia LLC, Dell LLC, Hewlett Packard Enterprise LLC, and HP Inc LLC.

Decree On “Exchange of Blocked Assets” and Other Updates for Deals With Foreign Securities Has Been Signed

10 November 2023

Over the past two years, the number of arbitration disputes on the recovery of unjust enrichment from foreign IT-companies has increased significantly. For the period from 2022 to 2023, according to the Arbitration Case File, dozens of claims were filed by Russian legal entities against the largest foreign software manufacturers: IBM Eastern Europe/Asia LLC, Dell LLC, Hewlett Packard Enterprise LLC, and HP Inc LLC.