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Profile
Dzmitry Babolia has been working in legal consulting for over 8 years and specializes in support of commercial disputes of any complexity level (including transnational disputes resolved by arbitration), in international trade, construction as well as sanctions and counter-sanctions regulation.
During his career Dzmitry has participated in the support of significant disputes involving large Belarusian and foreign companies, considered in state courts of the Republic of Belarus and in international arbitration (IAC at the BelCCI, SCC), as a leading representative.
He also has in-depth expertise in handling international commercial contracts, in particular for the supply of complex technological equipment, turnkey construction of facilities as within the pre-contractual negotiation or within the pre-trial settlement after a dispute has arisen.
Dzmitry is able and likes to apply international tools to solve clients' problems (FIDIC books, Unidroit Principles, CISG, etc.), to localize them to meet the requirements of Belarusian legislation. He is also considered risks and consequences of standard contractual mechanics that foreign counterparties often require to be included in a contract (liquidated damages, indemnity, waiver, limitation of remedies, etc.).
Among other things, he has practical experience in dealing with bank guarantees which are subject to URDG 758 of the International Chamber of Commerce (from negotiating the terms of the guarantees and the relevant contractual provisions to filing a claim under the guarantee with a foreign bank).
Dzmitry also has knowledge in the area of sanctions and counter-sanctions regulation: EU and US sanctions vis-a-vis Belarus, including export controls, and countermeasures taken by the Republic of Belarus.
News
Overview of the new EU sanctions package against Belarus
On June 29, 2024, the Council of the EU adopted a number of new restrictive measures targeting various sectors of the Belarusian economy. The stated aim of the new sanctions is to mirror the measures already imposed against Russia in order to prevent the possibility of sanctions circumvention.
The Embargo on Import and Sale of Goods from “Unfriendly” States in Belarus Has Been Extended
On May 23, 2024, Resolution of the Council of Ministers of the Republic of Belarus No. 359 (Resolution No. 359) entered into force, amending Resolution No. 700 of December 6, 2021 (Resolution No. 700) and extending the embargo on the import and sale of goods of “unfriendly” states.
Amendments to Decree No. 93: Cases When It Is Not Necessary to Obtain Governmental Permit to Alienate Property and Pay Fee
On March 13, 2024, the Decree No. 91 was signed, which amends subparagraph 2.13 of para 2 of the Decree of the President of the Republic of Belarus No. 93 of 14.03.2022 “On Additional Measures to Ensure Stable Functioning of the Economy” (hereinafter – the Decree No. 93). The latter established restrictions on alienation of shares or real estate of Belarusian enterprises linked to the investors from “unfriendly” states (see more details here).
When Alienating Real Estate, Belarusian Companies Must Provide Information on (Non-)Application to Them of The Restrictions of Decree No. 93
On January 18, 2024, the Resolution of the Council of Ministers of the Republic of Belarus No. 27 “On Issuance of Permits” (“Resolution No. 27”) came into force, approving, among other things, the procedure and conditions for issuance of governmental permits for alienation of equity interest (shares) and real estate of Belarusian companies linked to the investors from “unfriendly” states. The Arzinger Law Offices team has already written about it earlier. The precise description of the cases to which the restrictions apply, as well as the procedure for obtaining such permit can be found here and here. In addition, the Resolution No. 27 introduced an important addition to the procedure for state registration of real estate transactions or emergence, transfer, termination of rights, restrictions of rights thereto by legal entities of the Republic of Belarus, which we will examine in detail below.
Ban on Import and Sale of Number of Goods from Latvia is Introduced in Belarus
On 5 November 2023 the Resolution of the Council of Ministers of the Republic of Belarus No. 757 dated 02.11.2023 (“Resolution No. 757”) entered into force. The Resolution No. 757 amends the Resolution of the Council of Ministers No. 700 dated 06.12.2021 (“Resolution No. 700”), which establishes a list of goods prohibited for import and sale in Belarus originating and (or) produced (manufactured) in countries defined by law as unfriendly. The amendments introduced by the Resolution No. 757, among other things, significantly expand the embargo on goods from Latvia.
Fee for Alienation of Shares or Real Estate of Belarusian Companies by Investors From “Unfriendly” States
On 22 October 2023, the main provisions of Edict No. 326 dated 19 October 2023 (“Edict”) entered into force. Its provisions significantly affect the procedure for alienation of shares or real estate by shareholders from “unfriendly” jurisdictions, as well as for reorganization and withdrawal from Belarusian companies related to them.
Foreign Participants of Belarusian Companies Are to Receive Dividends Only on Special Accounts in Belarus If Restrictive Measures are Introduced
On 16 September 2023, the Edict of the President of the Republic of Belarus dated 13.09.2023 No. 285 "On Special Accounts" enters into force. The Edict No. 285 establishes rules for the use of special bank accounts in case of introduction of restrictive measures with respect to payments of profit and income to foreign participants of Belarusian companies.
New Procedure for Application of Special Restrictive Measures and Exclusive Jurisdiction of “Sanctions” Disputes
On 31 July 2023 the Law of the Republic of Belarus No. 280-Z dated 12.07.2023 "On the Application of Special Restrictive Measures" came into force. The Law provides for the types of special restrictive measures, determines the principles and procedure for their application. In addition, the Law establishes the exclusive jurisdiction of Belarusian courts in regard to certain categories of disputes and the possibility to impose a ban on initiating or continuing proceedings in a foreign court or foreign arbitration institution.
Belarus Extended and Expanded Food Embargo
The Council of Ministers of the Republic of Belarus approved Resolution No. 412 amending Resolution No. 700 which establishes the list of goods from unfriendly states that are banned for import and sale on the territory of Belarus.
Movement of Polish Trailers (Semi-Trailers) and Cars Restricted in Belarus
The Resolution of the Council of Ministers of the Republic of Belarus dated 19.06.2023 No. 391 was approved. The Resolution No. 391 amends the Resolution No. 247 “On the Movement of Transport Vehicles” (which has previously established rules for the movement of the EU vehicles through Belarusian territory) and introduces new restrictions in relation to Polish trailers (semi-trailers) and cars. The Resolution No. 391 also provides for the possibility of departure through the Belarusian-Russian section of the Belarusian state border for vehicles, trailers (semi-trailers) violating the ban. The amendments were adopted in response to the decision made by Polish authorities to ban the movement of Belarusian trailers and semi-trailers from 1 June 2023.
New Measures in Response to Sanctions: Belarus Law “On Seizure of Property” Adopted
On 6 January 2023, a new Law of the Republic of Belarus “On Seizure of Property” was published. The law comes into force on January 17, 2023 and provides for the possibility to seize property into state ownership upon decision of the Government.
Belarusian companies will be able to repay customs debt in instalments
On October 4, 2022, the new Decree №264 “On restructuring of customs debts” enters into force, which provides for the opportunity to repay in instalments customs duties or other payments in favour of the Belarusian customs authorities (special, anti-dumping, countervailing duties, penalties, interest and etc.) for a period of up to one year. This mechanism will be available till December 31, 2023.
Successful Pre-trial Settlement of Domain Dispute
Specialists of Arzinger Law Offices assisted the owner of a famous foreign website builder in out-of-court obtaining a domain name that infringed the client’s trademark rights and was used by a competitor as a promo site for advertising similar services.
How to Trade and Import Goods from Prohibited List?
On 27.04.2022 amendments to the List of goods prohibited for import and sale in Belarus, approved by Resolution No. 700, came into force. The Council of Ministers has added some vegetables and fruits corresponding to codes 0705 11 000 0, 0705 19 000 0, 0709 30 000 0, 0709 60 100 1, 0709 93 100 0, 0709 99 100 0, 0808 10 800 2, 0808 30 900 0 (lettuce, aubergines, sweet pepper, courgettes, salad vegetables, fresh apples and pears) to the exceptions that are not subject to the ban.
Ban on Movement in Belarus of Trucks from EU Comes into Force
On April 22, 2022, as a response to the EU sanctions, the Council of Ministers of the Republic of Belarus adopted the Resolution No. 247 “On the Movement of Transport Vehicles” establishing a ban on the movement on the territory of Belarus of automobiles and trucks registered in the European Union (the prohibition actually took effect on April 16, 2022).
Currently, as a general rule, automobiles and trucks from the EU may move within the territory of the country only through the border crossing points to specially designated places (customs clearance points, bonded warehouses, waiting areas of the electronic queue system) for cargo operations, transshipment, refuelling of vehicles (if necessary), and back (within the time period determined by customs officials). The list of special places, places for refueling is established by the Resolution.
Assignment of Claim in the Light of Suspension of Enforcement of Writs of Execution under Edict No. 137
On April 10, 2022, the Edict No. 137 “On Writs of Execution” entered into force, which set forth suspension of enforcement of all writs of execution (court rulings, notary writs, etc.) issued in favour of the residents of the “unfriendly” list countries (includes all EU members, the UK, Canada, the US, etc.).
Why does the claimant need a lawyer in enforcement proceedings?
There is an opinion, still widespread among clients, that at the stage of enforcement proceedings, the claimant does not need a representative, as there is a bailiff with extensive powers, whose key task is to restore the rights of the claimant. In practice, however, this is not the case.
The Edict No. 137 "On Writs of Execution"
On 10.04.2022, the Edict No. 137 "On Writs of Execution" entered into force, which provides for the suspension of enforcement of writs of execution issued in favour of residents of “unfriendly” countries.
The Edict is quite concise and does not provide direct answers to many important questions. It is quite possible that it will be followed up by a more detailed act of legislation or clarification of the application of the Edict will be provided. Nevertheless, we will try to formulate some conclusions which follow from the contents of the Edict with one or another degree of certainty.
The Arguments of Importers Outweighed the Major National Market Players in the Ukrainian Trade Investigation
The investigation on import of cable and wire products to Ukraine lasted for more than a year and finally ended up with the win of cable exporters to Ukraine, including Belarusian industry leaders. On October 13, it was announced that the earlier decision on introducing safeguard measures was canceled.