International corporations demand to change terms of contracts after Kremlin report
Now, foreign companies want to add terms regarding sanctions risks to the agreements made with Russian enterprises.
International corporations are trying to hedge and add clauses about the sanctions risks that arose after the publication of the so-called Kremlin report into the contracts concluded with Russian companies. This is reported by RNS with reference to representatives of several law firms involved in the conclusion of such contracts.
For instance, Artem Zhavoronkov, a partner of the St. Petersburg office of the international law firm Dentons, explains that the point of the additional clauses is that a foreign company has the right to unilaterally terminate the contract if it becomes aware that the counterpart is included in the Kremlin report. According to Zhavoronkov, “as a rule, the inclusion of such a clause in the contract is required by foreign companies” working in the field of IT-development.
Managing Partner of Tomashevskaya Partners Zhanna Tomashevskaya also confirmed the fact of requirements for anti-sanction guarantees from the foreign companies. According to her, many of them now ask for assurances from Russian companies that they are not listed on the sanctions list.
It is to be recalled that the Kremlin report was prepared and published by the US Treasury on January 30. The document includes a list of officials and businessmen close to Russian President Vladimir Putin. The open part of the list includes 210 names: 96 entrepreneurs with a fortune of more than $1 billion, and 114 Russian politicians.
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