Oil and gas sector and mineral resource use
Projects
Pepeliaev Group’s lawyers successfully represented companies providing services in the area of mineral production. When contesting the decisions of the Sakhalin customs authorities regarding the application of customs duties for the contractor with regard to the goods imported for the Sakhalin-2 PSA, our lawyers managed build positive case law for the importer which was subsequently applied to the Sakhalin-1 PSA as well. Moreover, the practice’s lawyers challenged in a commercial (‘arbitration’) court a decision of the customs authority disallowing the application of a customs benefit with regard to equipment imported as contribution to the issued capital. Owing to the efforts of our lawyers the client managed to avoid the need to pay additionally accrued duties in the amount of RUB 20 million.
The Practice’s lawyers represented an international company, which provides engineering services in the area of oil extraction, in a dispute with a major Russian oil company. The parties had mutual claims: in the client’s opinion its opponent had not paid in full for services supplied; therefore the counterparty accused our client of having not performed the work. The dispute gave rise to litigation proceedings the outcome of which could have been that the client lost its equipment and access to the necessary technologies. Owing to the efforts of Pepeliaev Group’s lawyers and our successful negotiations with the defendant, the conflict was settled: the works that were commissioned have been completed and financial claims have been withdrawn.
Pepeliaev Group’s lawyers provided legal support to a major Russian oil company regarding the rational use of natural resources, use of mineral resources, and environmental protection. Among the issues covered were the compensation of damage caused to the environment, the devastation of forests, excessive air pollution, industrial safety, compliance with sanitary legislation, and other matters.
Pepeliaev Group’s lawyers provided full Russian law legal support during the development of the Shtokman gas condensate field for Shtokman Development AG. Our tasks in the project involved reviewing and drafting EPC contracts, advising on legislative amendments, as well as on land law issues and the regulation of construction. This included advice on the following: developing infrastructure, obtaining rights to develop land plots, constructing offshore facilities, and structuring the project. Pepeliaev Group’s lawyers also advised the client on issues relating to environmental regulation.
Our Real Estate Practice’s lawyers have developed and assisted with a transaction of a major Russian diamond-mining company to purchase office premises in Moscow. The total floor area of the buildings was 11,500 sq.m. while the transaction value amounted to USD 90 million.
Pepeliaev Group's lawyers accomplished a project to assess the tax implications for Gazprom Export LLC in connection with its participation in 44 CFCs registered in 18 jurisdictions. Our experts prepared a memo containing conclusions on the CFC’s entitlement to apply an exemption from the taxation of profit in Russia; we issued recommendations on how to calculate the CFCs’ financial figures and apply exemptions; drafted sample documents and instructions required to fill in the notifications of membership in foreign companies and of CFCs; assessed whether the company was entitled to an exemption from the taxation of the CFCs’ profits; and calculated the CFCs' profits in order to pay tax in Russia. Pepeliaev Group's lawyers have already developed business process roadmaps for the companies to comply with Russian legislation on CFCs.
The lawyers from Pepeliaev Group’s bankruptcy practice have prepared an opinion for the subsidiary of a major national oil and gas corporation with an assessment of the risks relating to the set off of the counter claims of the potentially bankrupt company. The legal analysis of the situation, as well as of legislation and case law, has revealed significant risks that the assets will be lost even if the debt of the insolvent contractor is settled by way of set off. Based on the recommendations prepared by our specialists the client took a business decision that ruled out financial losses.