Advocates Bureau Yug Shines as a Partner at Kazan Legal Week 2024

The forums official commencement was marked by a warm and welcoming evening reception, carefully orchestrated to foster camaraderie and networking among the esteemed participants. The captivating performance of renowned singer Avraham Russo infused the air with an infectious energy, setting the tone for an unforgettable event.

The following day, May 23, marked the official start of the forum. Serving as the captivating backdrop for Kazan Legal Week 2024, the Tasigo Kazan Palace seamlessly intertwines the grandeur of a bygone era with the sophistication of modern hospitality.

The plenary session titled "Trends in Corporate and Business Communications in 2024" brought together a panel of highly respected legal experts from leading companies such as SIBUR, C5 retail Group, Avito, and others. Under the astute guidance of Dmitry Shchugorev, Editor-in-Chief of the TV channel "Moscow 24," the session offered a thought-provoking exploration of the ever-evolving landscape of corporate communications and leadership practices. Esteemed panelists shared their insights on crafting effective communication strategies, navigating the information deluge, addressing employee burnout, and fostering harmonious leader-team relationships.

Following a refreshing coffee break, the Kazan Legal Week 2024 program expanded into a series of parallel sessions and roundtables. Among these, the roundtables organized by the Russian State University of Justice (RSUJ) held particular significance, delving into the intricacies of "Trends in Judicial Practice in the Sphere of Public and Private Legal Relations."

Session 1 titled "Business Development Prospects in 2024" brought together a distinguished panel of legal experts (Kesarev, S&K Vertical, Seven Hills Legal) and business leaders (Aeroflot, ALROSA, Russian Agricultural Bank). Moderated by Fedor Belykh, Partner at Elwi, the session provided a comprehensive discussion of the business landscape and economic outlook for Russia in 2024, amidst the backdrop of external pressures and sanctions. Panelists delved into strategies for circumventing sanctions while adhering to compliance requirements. A particular focus was placed on safeguarding bank transfers in the face of asset freezes stemming from sanctions. Additionally, the session highlighted the emerging trend of cross-border bankruptcies.

Parallel Session 1.1, titled "Private Equity Risks: Inheritance, Divorce, Bankruptcy, Corporate, and Sanctions," brought together a panel of legal experts from law firms together with a judge from the Chelyabinsk Region Commercial Court and the Director of Personal Funds Sales at Alfa Capital. The session was moderated by Viktoria Dergunova of the Monastyrsky, Zyuba, Stepanov & Partners Bar Association.

The panelists delved into a comprehensive discussion, encompassing blocked assets, jurisdiction selection for structuring, the growing appeal of personal funds for private equity structuring, the interpretation of prenuptial agreements in court, corporate disputes initiated by ex-spouses, and strategies for minimizing risks associated with subsidiary liability.

Session 2 "Topical Issues in Legal Regulation" brought together a panel of legal experts under the moderation of Damir Nizamov, a representative of the forums organizers, ANP Zenith. The panelists engaged in a stimulating discussion encompassing a wide range of legal issues, including:

• The recent surge in IPOs and M&A activity
• Successful cases before the Government Commission
• Alternative methods for cross-border settlements
• Exclusion of Russian and foreign participants from LLCs
• Risk assessment systems to minimize negative consequences for management
• Class action lawsuits for asset recovery and damages caused by criminals in unfriendly jurisdictions.

Concurrent to the other sessions, Parallel Session 2.1, titled "Legal Issues in the Energy Sector in 2024," convened under the moderation of Yuri Pustovit, Managing Partner of Advocates Bureau Yug. The session brought together representatives from law firms and the energy industry, including Ugol-Trans JSC.

Sergey Radchenko, Partner at Advocates Bureau Yug, shared insights with the participants on the latest trends in tariff disputes involving electricity grid companies. He explained that a tariff dispute is an administrative claim filed by a grid company against the tariff service to invalidate a decision by the service that sets the necessary gross revenue, boiler, and individual tariffs for the grid company for the next year or even a five-year period within the framework of the period.

In addition to the standard tariff disputes, there exists a specific type of case where a grid company files a claim against the tariff service to recover losses caused by a regulatory act that has been declared invalid or by the failure to adopt a replacement act, resulting in a loss of tariff revenue. However, these cases are relatively rare.

One of the most common expenses that triggers disputes regarding its inclusion in the necessary gross revenue is interest on bank loans. Recent court practice has adopted a very strict approach to including such expenses in the necessary gross revenue (NGR). The court requires the grid company to prove that it has incurred losses, a cash deficit, and cash gaps, primarily due to non-payment by consumers.

In court, the tariff service defends its position by arguing that including the claimed expense in the NGR would lead to tariff increases and potentially collapse the regional economy. They further argue that the grid company should collect debts from non-paying consumers rather than taking out loans. The grid companys objections, which emphasize that focusing solely on consumer interests could lead to the companys demise, thus ultimately harming consumers, and that the company is willing to collect debts but only if consumers can tolerate 1-1.5 years without electricity until the debt is recovered, are typically disregarded by the court, both during hearings and in judicial acts.

In the realm of tariff disputes involving grid companies, an alternative to pursuing litigation in court is to seek resolution through the Federal Antimonopoly Service of the Russian Federation. This mechanism allows grid companies to present their grievances and seek a fair resolution before resorting to court proceedings.

The session on energy law delved into additional critical issues facing the industry beyond tariff disputes. These included:

• Tax aspects in the oil and gas industry in 2024;
• Responsibility for unauthorized electricity consumption;
• Force majeure in the energy sector;
• Asset freeze due to foreign counterparty defaults;
• Reactivating abandoned assets.

Following a brief coffee break, forum participants reconvened for the third session, ironically titled "Hit Parade of Court Positions 2023-2024." Moderated by Sergey Kovalev, Managing Partner of Kovalev, Tugushi, and Partners, the session encompassed a wide range of legal topics, delving into a surge in cross-border disputes arising from the application of articles within the Arbitration Procedure Code of the Russian Federation (APC RF) regarding the exclusive jurisdiction of Russian courts in cases involving foreign parties. Panelists explored new developments in the realm of foreign company bankruptcy and the recognition of Russian court judgments abroad in the post-2022 landscape. Furthermore, the session addressed the evolving landscape of customs disputes in 2023-2024, including an evaluation of the effectiveness of astreint as a judicial tool. Discussions also encompassed the recovery of lost profits, the complexities of class action lawsuits within the securities market, and the pressing issues surrounding subsidiary liability in bankruptcy proceedings during 2024.

As the world embraces the transformative power of digitalization and information technology, the need for effective legal and regulatory frameworks becomes increasingly crucial. In this regard, Parallel Session 3.1, aptly titled "Digital Reality: The Truth," moderated by Ramis Abyanov, Partner at ANP Zenith, provided a thought-provoking exploration of the legal and regulatory challenges and opportunities arising in the digital realm. Panelists delved into the complex landscape of cryptocurrency regulation and e-commerce and addressed the intricacies of software disputes and the IT tax benefits. They explored strategies for effectively managing intangible assets in the digital environment and discussed the potential for digitalizing the legal function within companies.

As the formal business program drew to a close, the forums participants were treated to a delightful fusion of culinary delights and musical entertainment at the closing banquet.

The final day of the forum bore a special title that perfectly captured its essence: Kazan Legal Week Golf Day. This unique event transformed the picturesque grounds of the Sviyazhskie Holmy Golf Club into a hub for sporting camaraderie and networking opportunities. The golf tournament was designed to be inclusive and welcoming, catering to players of all skill levels. The emphasis was not on fierce competition but rather on savoring the beauty of the surroundings, the warmth of the sun, the lush greenery, and the lively music, all while engaging in stimulating conversations and forging new connections. However, the competitive spirit was not entirely absent, and an award ceremony was held to recognize and celebrate the winners in various categories.

The forums participants departed not only enriched with new insights and friendships but also carrying the lingering warmth of a truly enriching experience.