Forte Tax & Law: What to do and how can we help?
Facing a devastating political and business situation, many are wondering what to do now and whether they should continue or end their operations in Russia. What to do with personal assets, employees, investments?
We do our utmost to keep our reason and wits about to offer sound judgement. We follow the news and constantly monitor rules and regulations as they are changing at breakneck speed every day.
We give the following recommendations to our clients:
- Assess which of the sanctions may affect your Russian subsidiaries, foreign group companies and their counterparties, and work out an action plan;
- Check what currency restrictions apply to the activities of your Russian companies and evaluate what this may mean in practice;
- Determine what customs and logistics restrictions already exist and assess whether obligations to counterparties may be fulfilled;
- Assess whether previously concluded domestic contracts can be fulfilled, and if so, evaluate the timeframe for such fulfillment, determine whether their fulfillment is directly dependent on foreign suppliers, and notify in writing that obligations cannot be fulfilled due to circumstances of force majeure circumstances;
- Conduct a risk analysis of cross-border contracts and agreements and set up a risk reduction procedure (send notices of impossibility of performance, impose a moratorium on interest accrual on loans with affiliates, enter into agreements to extend payment terms for deliveries or services rendered to minimize currency risks, etc.);
- Consider the possibility of reducing costs: cancelation of lease of warehouse space, office space, assess whether the number of staff or the hours they work should be reduced;
- Assess the impact of new circumstances on personal assets located in Russia and abroad and consider possible options to minimize such risks (including in the event of potential nationalization).
We can help by:
- Preparing an action plan outlining specific actions to minimize risks in contractual, tax, financial, and currency matters;
- Working out a set of measures to reduce risks for Russian assets, including their freezing, transfer to Russian managers or sale (if possible);
- Providing full support through all stages of liquidation proceedings for Russian companies;
- Representing your interests (whether you are a creditor or a debtor) in bankruptcy proceedings initiated against Russian companies;
- Representing your interests in pre-trial settlement of disputes in Russian courts of general jurisdiction and commercial courts;
- Assisting in negotiations with employees and with dismissal or reduction of working hours;
- Providing legal and advisory support in migration matters.
We will stay in touch. We are always happy to help, so feel free to contact us if you have any questions.
Yours sincerely,