Mergers & Acquisitions 2009 in 58 jurisdictions worldwide publishes survey of the Russian M&A market by Elena Sokolova and Vladislav Arkhipov, EPAM.

Several important novelties have been introduced recently. Russian legislation on limited liability companies (which is the most popular form of business in the Russian Federation) has been substantially redrafted. In particular, from 1 July 2009 it is possible to make an agreement between the participants that is similar to shareholders’ agreements recognised in some other jurisdictions. Transactions with shares shall be witnessed by a notary. These and other novelties will affect the M&A market in Russia and make legal issues less predictable due to the lack of established practice. A bill is being processed by the State Duma that legitimises and regulates shareholders’ agreements in joint-stock companies, explain Elena Sokolova and Vladislav Arkhipov.

The credit crisis has resulted in a general cooldown of M&A activity in Russia. At the same time, restructuring, refinancing and corporate litigation have gained strength. However, we consider the effect of the credit crisis to be not as drastic as it could be. M&A transactions are still being effected, although on a smaller scale.


 E.Sokolova and V.Arkhipov. Russia