1. 1. President issued decree on temporary procedure of execution of obligations towards certain IP owners No. 322 dated 27 May 2022.

The new decree establishes restriction on the payment by Russian residents (debtors) of fees (royalties) under license, sub-license, IP management and other contracts related to the use of IP to foreign IP owners.

The decree targets the following IP owners:

►incorporated in a jurisdiction considered as unfriendly by Russia (including France) or are Russian subsidiaries of such foreign IP owners,

►publicly support foreign sanctions against Russia,

►have prohibited the use of such IP in Russia or in relation to certain Russian persons/entities,

►have suspended their activities in Russia,

►have publicly discredited Russian army, or

►have insulted in the Internet Russian state or public interests.

Entities controlled by Russian persons are not targeted in case they disclosed such control to Russian tax authorities.

Royalties and related payments are to be made in RUB to a type “O” bank account opened in a Russian authorized bank. Russian Governmental Commission can authorize the transfer of funds from the bank account of type “O” to the foreign bank account of the IP owner.

The restriction does not apply to:

►Payments not exceeding RUB 100,000.00 that are made by individuals for their private needs,

►Foreign IP owners, which duly perform their IP contracts with Russian residents,

►IP contracts concluded between Russian residents and foreign IP owners on the importation or production of medicines, medical devices, industrial, agricultural and food products in Russia,

►IP contracts concluded between Russian residents and foreign IP owners on the provision of communication services or traffic transmission services,

IP contracts concluded between Russian residents and foreign IP owners on the creation or use in Russia of databases, information systems, data processing centers and software for computers.

2. Government issued a list of persons under sanctions

On 11 May 2022, the Russian Government prepared a list of persons under sanctions.

The list includes:

►Gazprom Germania GmbH

►Astora GmbH

►ZGG – Zarubezhgazneftehim Trading GmbH

►GAZPROM Schweiz AG

►WIEE Hungary Kft.

►WIEE Bulgaria EOOD

►IMUK AG

►WIBG GmbH

►WIEH GmbH

►WINGAS GmbH

►WINGAS UK Ltd

►WINGAS Sales GmbH

►WINGAS Holding GmbH

►Industriekraftwerk Greifs wald GmbH

►VEMEX ENERGO s.r.o.

►WINGAS Benelux s.r.l.

►Gazprom Marketing & Trading Ltd.

►Gazprom Global LNG Ltd.

►Gazprom Marketing & Trading France SAS

►Gazprom Marketing & Trading USA Inc.

►Gazprom Marketing & Trading Switzerland AG

►Gazprom Marketing & Trading Singapore PTE. Ltd.

►Gazprom Marketing & Trading Retail Ltd.

►Gazprom Mex (UK) 1 Ltd.

►Gazprom Mex (UK) 2 Ltd.

►PremiumGas S.p.A.

►VEMEX s.r.o.

►VEMEX ENERGIE a.s.

►WIEE ROMANIA SRL

►EUROPOL GAZ S.A.

The list was adopted pursuant to Presidential Decree No. 252 dated 3 May 2022 “On Special Economic Measures Countering Unfriendly Acts of Certain Foreign States and International Organizations”. As a reminder, the decree establishes the following restrictions:

►Ban for federal and regional governmental bodies, entities and individuals under the Russian jurisdiction to:

+ Perform any actions, including conclusion of foreign trade contracts, with entities and individuals subject to Russian special economic measures. The ban also extends to any engagement with organizations controlled by said targeted persons;

+ Fulfill obligations under executed transactions, including under concluded foreign trade contracts, if such obligations have not been (fully) performed.

►Ban on exportation of products and / or raw materials manufactured and / or extracted on the Russian territory, if such products and / or raw materials are supplied to persons under sanctions or by such persons in favor of third persons.

3. Draft law on external administration of foreign companies adopted in the first reading.

On 24 May 2022, the State Duma adopted Draft Law “On External Administration of Companies” in the first reading.

As a reminder, this draft law was introduced as an alternative to an initial, more rigid legal initiative, also known as the nationalization law. This draft law still has certain inconsistencies and unclear provisions that either have to be clarified for further readings in the Duma or will be applied at the discretion of the courts and the specific commission once the initiative becomes law. In particular the draft law primarily targets companies of significant importance for Russian economy but also allows a specific commission to determine a company as significant on a case-by-case basis.

For more information on this draft law, please refer to our legal alert dated 13 April.