DeHeng Successfully Held the Seminar regarding
"Hot Issues on Investments into Russia"

2018-7-27

▲Scene of seminar

On July 26, 2018, the Seminar regarding "Hot Issues on Investments into Russia" held by DeHeng Law Offices in concert with the Russian Embassy, the Russian Business Representative Office in China, the Russian Luxingweiji Law Firm, Beijing Arbitration Commission (Beijing International Arbitration Center), and KPMG was successfully held at the DeHeng conference room at Focus Place at Financial Street. More than one hundred participants of representatives of enterprises including Russia SIBUR, Vnesheconombank, State Grid, Shenhua Overseas, China National Nuclear Corporation, Sinosteel International, China Railway International, PetroChina, China Development Bank, CNNC Suneng, China Great Wall Industry, China Railway Electrification Engineering, POWERCHINA, CETC No. 22 Bureau, CETC No. 38 Bureau, TBEA, and State Administration of Science, Technology and Industry for National Defense as well as industry experts attended the event. The event is one of the DeHeng "Dexianghui" legal seminars in 2018.

▲Director Wang Li delivering a speech

Dr. Wang Li, Director of DeHeng Law Offices, Global Chief Partner and Chairman of the Belt and Road Service Connections, delivered a speech at the meeting. Wang Li said that Russia is one of the most important countries under the Belt and Road initiative. While meeting new opportunities, Chinese enterprises are also facing enormous challenges and risks. DeHeng Law Offices initiated the establishment of the Belt and Road Service Connections and the BnR International Commercial Mediation Center to support Chinese enterprises "going global". At present, the BnR International Commercial Mediation Center is working with the "Moscow International Commercial Arbitration Tribunal Mediation Center" and the "Russian Federation of Industrial Enterprises Mediation Center" to help Chinese investors and enterprises solve problems in the "most peaceful" way.

▲Russian Economic Counselor Alexander Chernov talking with Director Wang Li

Alexander Chernov, Economic and Commercial Counselor of the Russian Embassy in China, attended the event and expressed great support for the seminar. During the meeting, Director Wang Li reported to Alexander Chernov on DeHeng's contribution to such areas as trade and economy development between China and Russia. Wang Li said that DeHeng will continue to uphold the concept of "Virtue and Integrity" and make pragmatic innovation to provide first-class legal services to clients, contributing to the exchanges between the two countries.

▲Lawyer Zhang Xiaodan hosting the first session of the meeting

▲Professor Wang Zhihua hosting the second session of the meeting

The whole meeting was divided into two sessions, presided over by Zhang Xiaodan, Partner of DeHeng Beijing office, and Professor Wang Zhihua, Director of the Institute of Comparative Law of China University of Political Science and Law, respectively.

▲Konstantin Sidorenko business representative sharing thoughts on the theme

Russian business representative Konstantin Sidorenko delivered a speech and shared thoughts on the theme of "The Charms of Investment in Russia". Mr. Sidorenko introduced the current economic development in Russia and the potential of Russia to attract foreign investment. He pointed out that China and Russia have long-term friendship and the bilateral relations are at the highest level in history. In recent years, more and more Chinese businesses have entered into the Russian market. Russia has also set up various effective mechanisms to improve the investment environment, providing investors with tax and customs clearance incentives to attract foreign investment.

▲Lawyer Zhang Zhenli sharing thoughts on the theme

Lawyer Zhang Zhenli, Partner of DeHeng Beijing office, Distinguished Researcher of the Russian Law Research Center of China University of Political Science and Law, and a member of the Foreign Affairs Committee of Beijing Lawyers Association, made the themed sharing on "Several Important Issues in Law Practices for Investment in Russia". Lawyer Zhang analyzed the control rights of joint ventures from a professional perspective based on specific cases, clarified the different meanings of "legal representative" in the two countries, and introduced in detail the functions and powers of the general manager and the chairman in the actual operation of business. Lawyer Zhang also shared views on the attributes, acquisition and transfer of mining rights in Russia, and made suggestions for foreign investment projects.

▲Dr. Xu Wenhong making themed sharing on “China-Russia Capital Flow: Status, Problems, and Trends”

Dr. Xu Wenhong, Deputy Secretary-general of the Belt and Road Research Center of the Chinese Academy of Social Sciences and associate researcher of the Russian, East European and Central Asian Studies, made themed sharing on "China-Russia Capital Flow: Status, Problems, and Trends". Dr. Xu Wenhong analyzed the capital outflows in China and Russia in recent years, forecast the economic development trend of China and Russia in the next decade, and introduced the Chinese and Russian investment methods, main tax types in Russia and their stock markets. Furthermore, he also stressed the important role of Moscow, Hong Kong and Shanghai in the future cooperation between China and Russia in the financial sector.

▲Signing ceremony site

During the tea break, the signing ceremony of the Central Asia and Shaanxi Chamber of Commerce joining the "Belt and Road Service Connections" was held. Ji Yanwei, the head of the Chamber of Commerce, said that the participation in this meeting yielded many results. Becoming a member of the "Belt and Road Service Connections" is of great significance to the Chamber of Commerce.

▲Dr. Natalya Prichekina making themed sharing

Dr. Natalya Prichekina, Senior Partner of Russian Luxingweiji Law Firm and Associate Dean of the Law School of the Far Eastern Federal University, made themed sharing on "Several Issues in the Adjustment of the Russian Far East Law in Foreign Investment". Dr. Natalya Prichekina introduced the overall situation of the Russian business environment, the legal status of foreign investors and their investment forms, as well as Russia's restrictions on foreign investment; and cited convenient investment mechanism such as leapfrog development zones, free ports and offshore companies for foreign investors.

▲Dr. Chen Fuyong making themed sharing

Dr. Chen Fuyong, deputy secretary-general of Beijing Arbitration Commission (Beijing International Arbitration Center), made themed sharing on "Arbitration Issues Concerning Trade and Investment Disputes related to Russia". Starting with "Why should we emphasize dispute resolution", Dr. Chen Fuyong took the construction contract disputes, loan contract disputes and investment insurance contract disputes as examples to illustrate the various risks that may arise in the China-Russian trade and investment process, and pointed out that risks and opportunities, vision and thinking, rules and profession coexist in foreign investment. Only by properly controlling risks can we make steady progress.

▲Lawyer Wan Shiyao making themed sharing

Wan Shiyao, a lawyer of DeHeng's Beijing office, made  themed sharing on "Challenging the 'Impossible' - DeHeng Advised on the Signing of China-Russian Government Agreement to Usher in a New Chapter on Chinese Enterprises Holding Russian Strategic Assets". Based on the progress of a three-year engineering construction project, Wan Shiyao introduced Russia's restrictions on foreign investment strategic industry and broke through the Russian policy's restrictions on foreign investment by helping clients to sign the China-Russian intergovernmental agreement, so that the project went smoothly.

▲Manager Zhang Lu making themed sharing

Zhang Lu, KPMG Senior Manager in charge of Tax, made themed sharing on "Introduction to Russian Tax Environment and Tax Issues Related to Investment Structure". Starting from the main areas and trends of Chinese-funded enterprises investing in Russia, Zhang Lu briefly introduced the main applicable tax types in Russia and the impact of Russian tax law reform on foreign investment, and enumerated two investment structure cases and various tax incentives in Russia. In addition, she also detailed the Russian tax inspection and the procedures for appealing against the results of the inspection.

During the free discussion session, the speakers as well as business representatives, clients, and participating lawyers discussed the content of the speeches. Everyone put forward their own questions, expressed their opinions and shared their experiences in the active discussion.

▲Lawyer Chen Wei making a concluding speech

At the end of the event, Lawyer Chen Wei, Managing Partner of DeHeng Law Offices and Head of DeHeng Cross-border Committee, delivered the concluding speech. He said that cross-border investment, like a ship sailing on the sea, requires the aid of legal professionals  with GPS function.

The guests expressed that they benefited greatly from this seminar and spoke highly of DeHeng legal service brand. DeHeng will, as always, actively provide professional, high-quality and comprehensive services for the implementation of China's Belt and Road initiative.

▲Some guests in a group photo