Юридическая фирма VERBA LEGAL

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Currency Regulation

About practice

VERBA LEGAL’s currency regulation practice has extensive experience advising clients on all aspects of foreign exchange regulation, including assessing the potential consequences of foreign currency transactions, supporting cross-border settlements with international counterparties, and liaising with credit institutions and regulatory authorities.

The practice is focused not only on legal advice but also on developing robust and workable transaction structuring models. We assist clients operating under current counter-sanctions restrictions by proposing solutions that take into account regulatory requirements, enforcement practice and the commercial objectives of each transaction, ensuring their practical viability.

The team also has a strong track record in obtaining regulatory approvals for foreign currency transactions subject to statutory restrictions.

Our clients include major Russian and international corporations operating in the financial services, FMCG, logistics and pharmaceutical sectors.

Services

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Advising on currency regulation and counter-sanctions regimes, including complex cross-border compliance issues

Structuring transactions to ensure compliance with applicable currency legislation and related regulatory restrictions

Engaging with the Central Bank of the Russian Federation and other competent authorities on currency regulation matters, including the preparation and submission of formal applications, notifications and transaction-specific clearance requests

Preparing detailed legal opinions and position papers for submission to authorised banks in connection with proposed or ongoing foreign exchange transactions

Designing and implementing internal corporate procedures and compliance frameworks to ensure compliance with currency legislation

Defending clients in administrative proceedings in connection with non-compliance with currency legislation

Support during currency control audits

Challenging decisions of currency control authorities before the courts

Defending clients in the context of investigative activities and criminal proceedings relating to alleged violations of currency legislation

Selected Experience

we advised:

one of the largest Russian mineral and chemical companies in connection with a request to analyse the company’s relationships with UniCredit Bank and Raiffeisen Bank in respect of a guarantee issued by the company for a major Lithuanian entity under revolving letter-of-credit facilities, as well as the relationships between the company and its Swiss creditor from the perspective of Russian foreign exchange regulation (facility limit: USD 50 million);

a global leader in the explosives manufacturing sector in preparing a memorandum on its obligation to repatriate an advance payment made to a Swiss contractor, developing debt settlement models, including support in entering into a series of assignment agreements, set-off arrangements and other English law governed contracts, as well as deregistration of the contract with the authorised bank;

clients on the foreign exchange regulatory implications of M&A transactions concluded both between Russian residents and between residents and non-residents;

a major Russian holding company in preparing a memorandum on the foreign exchange regulatory consequences of a package of agreements related to a USD 1.5 billion credit facility (novation agreements, set-off arrangements, guarantees, assignments and related instruments);

a major Russian holding company in preparing a memorandum on whether it was subject to an obligation to repatriate an advance payment made to a Swiss contractor under EPC and EPCM contracts, including advice on Russian foreign exchange legislation to determine a debt settlement strategy in the context of SCC arbitration in Stockholm (contract value exceeding EUR 200 million);

clients on foreign exchange regulatory implications arising under various agreements with their foreign customers and contractors;

a US multinational corporation in analysing interactions between the group’s US, Kazakh and Russian entities from the perspective of compliance with Russian foreign exchange regulation, including drafting a number of agreements to settle intercompany indebtedness (contract value exceeding USD 1 billion);

Russian and international companies on a broad range of foreign exchange regulation matters, including permitted currency transactions, operation of foreign bank accounts, repatriation of foreign currency proceeds, and the consequences of non-performance by foreign counterparties under international trade contracts;

a foreign canned goods manufacturer on structuring its operations, including cross-border payments, in light of applicable counter-sanctions restrictions;

the Russian IT group Reksoft in relation to applicable foreign exchange and counter-sanctions restrictions in connection with the acquisition of 100% of RNT Group, the rights holder of EPAM Systems LLC, the Russian subsidiary of EPAM Systems Inc.;

the largest Russian gold mining company on structuring transaction chains to exclude an unfriendly company when performing obligations under loan agreements;

a subsidiary of a leading plastic packaging manufacturer in obtaining regulatory approval to pay dividends to a foreign shareholder in excess of counter-sanctions thresholds;

Russian companies in administrative proceedings relating to alleged breaches of foreign exchange legislation.

Who will be working with you

Our team