Today the Ministry of Economic Development publicly discussed draft amendments to the Civil Code that it has prepared together with the International Financial Center task force.

Lawyers of the leading Russian companies and representatives of the legal community voiced their position in respect of the proposed amendments. The principal debates swirled around regulating corporate relations, proprietary rights and a number of other topics.

Maxim Rasputin, Senior Associate at EPAM, delivered a report on “M&As and Direct Investments: Structuring Opportunities under Russian Law in the Context of the Civil Code Reform”. In his speech, he brought to attention innovations on option agreements, indemnities, representations, escrows, negative obligations, irrevocable powers of attorney and shareholders’ agreements that are reflected in the draft laws of the Codification Committee, Ministry of Economic Development and State Legal Directorate.

Maxim asserted that if these important contractual structures do not feature in the Russian law or do not become efficient, this will entail the need to service transactions in accordance to foreign laws. He commented on and supported the proposed innovations; he also expressed confidence that if they are included in the Civil Code, mid-market and large transactions will be structured under the Russian law more often.