Analytics and brochures

Pepeliaev Group advises that the Russian Financial Monitoring Service has released its Information Letter No. 17 dated 2 August 2011 On factors in transactions, and in types of and terms for activity, that entail an increased risk of clients entering into transactions for the purposes of legalising (laundering) income received through criminal means, and the financing of terrorism.

Pepeliaev Group advises that the Russian Supreme Arbitration Court supported the stance taken by the Nineteenth Arbitration Court of Appeal and the Federal Arbitration Court for the Central Circuit, according to which provisions of article 1487 of the Russian Civil Code (“Exhaustion of the exclusive right to a trademark”) only apply to the use of the trademark with regard to goods that have been lawfully put into circulation, but not services. Therefore, the use, without the right holder’s permission, of a trademark/ service mark by third parties to advertise services associated with the relevant goods constitutes a violation of the exclusive right to the trademark / service mark (see case No. А64-2744/2010).

Pepeliaev Group law firm advises that the Presidium of the Supreme Arbitration Court (the “SAC”) will for the first time consider how the non-discrimination provisions of international double tax treaties correlate with Russian thin capitalisation rules, which in certain cases provide for interest accrued on a taxpayer’s debt to be reclassified as dividends.

Pepeliaev Group advises that a number of laws and regulations have been adopted that amend labour protection rules. In particular, a new procedure for assessing individual workplaces for compliance with labour safety rules has been adopted and a draft law on increasing the criminal and administrative liability for violating the labour protection requirements has been introduced.

Pepeliaev Group advises that court practice has become harsher in cases on filing statements with banks for currency control purposes.

Pepeliaev Group advises that, on 28 July 2011, a Resolution of the Plenum of the Russian Supreme Arbitration Court with direct implications for construction and investment activity was published on the SAC’s website. The Resolution creates substantial tax risks for all those involved in that sector: builders, investors and developers.