Sergey Mashonsky

On April 25, 2024, a meeting of the Public Advisory Board for Entrepreneurship Development under the Ministry of Economy of the Republic of Belarus was held. One of the key issues was to consider the draft version of the Regulation on the Procedure for Conclusion, Amendment and Termination of Investment Agreements approved by Resolution of the Council of Ministers of the Republic of Belarus No. 563 “On Measures to Implement the Decree of the President of the Republic of Belarus No. 10 dated August 6, 2009” (the “Regulation”).

On January 8, 2024, Law No. 350-Z was adopted, setting forth in a new version the Law of the Republic of Belarus dated 12.07.2013 No. 53-Z “On Investments” (the “Law”). The new edition of the Law expands the list of benefits and preferences granted to investors, introduces new types of investment treaties, details the powers of state bodies and provides new guarantees for investors.

The draft law “On Investments” suggests to secure the possibility for an investor who has concluded an investment agreement with the Republic of Belarus to be provided with guarantees against unfavorable changes in the tax legislation of Belarus, commented Sergei Mashonsky, senior partner of Arzinger Law Offices, for PrimePress. At the same time, the procedure and conditions for such guarantees are to be established in other legislative acts.

Chambers Global is a reputable British ranking which assesses the work of the law firms in different countries classifying them by practices. The objectivity of the approach of the London-based authors of the ranking is undisputable. The researchers traditionally base their assessment on three key factors: the complexity of the projects, feedback from clients, and also facts and figures which reflect the direct or indirect effect of the legal work.

This expert group will focus on preparation, discussion and assessment of the regulatory effect of upcoming legal acts that influence the business of the two countries.

Creation of the group was proposed and supported at the meeting of the Business Council partly held offline in Minsk on September 28. Some of the guests participated in the meeting online.

The contract was concluded between JSC “Management Company of the Holding “Belorusskie oboi” and Austrian company Andritz to implement an investment project for the technical reequipment of Dobrush Paper Factory and organize the production of coated and uncoated cardboard on July 29, 2020.

Consistent with our mission to keep lawyers and the greater business community informed of legal developments in Belarus, and cognizant of the dramatic spread of the COVID-19 across Europe in recent weeks, we contributed to “CEE Legal Matters COVID-19 Comparative Legal Guide: Contracts”, with a country paper on Belarus.

On February 18, 2020, the annual meeting of the working group “Law, Taxes, Finances” under the Representative Office of the German Economy in the Republic of Belarus was held at our office.

This project is unique in many ways: the total area and concept, tenants and location, food court and entertainment, five parking lots, a KHL level ice arena and, finally, the project budget.

Sergey Mashonsky took part in the development of the Strategy as a member of the working group in cooperation with the Ministry of Economy of the Republic of Belarus and the National Agency for Investment and Privatization.

Our firm prepares this annual event jointly with the Polish Embassy in Belarus, the Polish National Agency for Investment and Trade (PAIH) and the Association of Polish Businesses in Belarus.

The presentation was dedicated to the logistics sector and public-private partnership. The Belarusian business delegation was composed of about 25 companies from the IT, banking, road, metallurgical, pharmaceutical, food and other sectors. From the Austrian side, more than 150 companies and institutions interested in cooperation with Belarus registered for the event.

At this high-level event, which was held in Nur-Sultan on October 24, Sergei Mashonsky had the role to present the investment and business climate of Belarus at the plenary session of the business forum.

Sergey Mashonsky moderated the opening session of the forum “Modern Technologies to Improve Regional Competitiveness. Use of innovative technologies and modern approaches in industry, agriculture and construction. New aspects of doing business, effective models, forms of management, successful practices, proposals for the Gomel region ”.

The XI Congress of the Belarusian Chamber of Commerce and Industry was held on October 10 in Minsk. At the first meeting of the Council of the Belarusian Chamber of Commerce and Industry elected by the 11th Congress of the BelCCI, the new composition of the BelCCI Presidium and the BelCCI Audit Commission were approved.

The forum traditionally brought together for professional communication and exchange of experience the leadership of banks, companies and industrial groups, as well as corporate lawyers and heads of law firms practicing in the field of corporate law, leading experts and consultants in the field of corporate governance from Ukraine, Moldova, Belarus, Russia, Kazakhstan and Uzbekistan.

Belarusian Chamber of Commerce and Industry traditionally acted as a competition organizer together with the Ministry of Architecture and Construction, Ministry of Healthcare, Ministry of Foreign Affairs, Ministry of Forestry, Ministry of Industry, Ministry of Agriculture and Food, Ministry of Transport and Communications and the Ministry of Economics. State Military Industrial Committee, concerns Belgospischeprom, Bellesbumprom, Belneftekhim and some other state bodies, organizations and business unions also contributed to this event.

We advised a major global payment agent on actual issues of activities in the Republic of Belarus, including the personal data protection issues. We took into consideration both current GDPR requirements and local regulations regarding the personal data collection, storage and processing regulations.

In 2016, we were addressed by the French origin company, which was one of the largest global manufacturers of milk products. The client wanted to acquire the controlling shareholding of a Belarusian milk factory. We supported the entire process on the Client’s behalf.

The Corporate Law practice and the M&A practice team performed the Due Diligence of the target company, structured the entire process of the deal, developed the package of agreements (the sale and purchase agreement, the guarantee agreement, the escrow account agreement, the non-competition agreement, etc.) to complete the deal, negotiated with sellers of shares, received the required permits from antitrust authorities.

The deal was finished in January 2017.  Today, we are supporting the process of redemption of shares from minor shareholders.

Fishman Group, an Israeli investor, implemented the project for development of the High-Tech Park territory through its subsidiaries SvitLand Development and Devinvest. The client built three residential units (premises in them are rented by the High-Tech Park employees), a shopping mall and a business center with the total area of 44,630 sq.m.

Our team rendered comprehensive legal support of this project, starting with negotiations with local authorities to protect the Investor’s interests under the investment contract and finishing with legal analysis and development of all the documents required for construction.

The investment agreement concluded by the Client for implementation of this project became the third investment agreement in the sovereign history of Belarus.

An investment research jointly with the German Economic Team “Improving the Business Climate – Boosting Private Investment” aimed at supporting the Belarusian government in its efforts to further improvement of the local business environment and attraction of foreign direct investments.

Representation of the client’s interests in the course of raising direct financing from Polish Bank Gospodarstwa Krajowego in the amount of €55 million for construction of an office and shopping center with the floor area of 68 thousand sq.m in Grodno, Belarus.

We represented the client in a number of disputes with foreign and Belarusian contractors in the International Arbitration Court at the BelCCI and in Belarusian economic courts.

The dispute was associated with performance of construction and installation works in connection with production facilities modernization within the scope of investment projects. The disputed amount is over USD 10 million.

We render legal support to the client in the scope of the investment project for construction of a plant for manufacturing medical products of human blood plasma in the Republic of Belarus. The expected volume of direct foreign investments is $ 20 million. We advised the client on the issue of the procedure of performing construction works, obtaining the required permits, the issues of the general construction contract agreement. We also advised on specific requirements to manufacturing of medical products.

The project was started in June 2017 and is still ongoing.

Advising and representation of the client’s interests in the International Arbitration Court with the BelCCI for resolution of the dispute under the oil transportation agreement. The disputed amount is over USD 110 million.

Legal support of construction and implementation of a huge investment project in the territory of the Great Stone China-Belarus Industrial Park. The project for development of the territory is implemented by our customer, the total amount of investments will be about $ 500 million. The State Development Bank of China granted a long-term loan to our client in the amount of over $ 100 million for the project implementation.

As part of the legal support rendered, we performed the legal audit of the borrower’s activities followed by drawing up the legal opinion for the State Development Bank of China, and provided the independent opinion on meeting the prerequisites for granting the loan by the borrower.

At present, Arzinger renders legal support to the Ministry of Natural Resources and Environment Protection of the Republic of Belarus within the scope of the international technical aid project for development of wind power engineering in the Republic of Belarus.

The project purpose is to create a set of wind power plants. This is the first international technical aid project in Belarus, which is aimed at developing wind power engineering and is jointly financed by the United Nations Development Program and the Global Environment Facility.

We performed a comprehensive legal audit of construction issues under the project for our client (verification of contracts in the field of construction, proper registration of titles for land plots, verification of the availability the required construction permits, etc.).

Advising and representation of the client’s interests in performance of the contract agreement for turnkey construction of a new plant, participation in negotiations for resolution of controversies with a Chinese contractor. The project amount is over USD 800 million.

Advising on taxation issues in employment of foreign citizens, as well as on taxation of foreign organizations when performing construction activities in the Republic of Belarus.

Representation of interests of a furniture manufacturer in the course of making amendments to the investment agreement with the Republic of Belarus regarding construction of a woodworking factory.

Investment agreement conclusion and legal support of implementation of the $9 million innovative project to create a centralized system for collecting, storing, processing and using waste oils.

Support of a projected company for construction of a pilot 5MW solar power plant in Gomel region within a first-level investment agreement (provides for additional benefits and preferences).

Advising and representation of interests of a major Belarusian developer of the software for manufacturers of high-tech products in a dispute with a customer due to improper performance of contractual terms by the customer and violation of the developer’s intellectual property rights. The dispute amount is over EUR 600 thousand.

We supported registration of computer applications at the NIPC, entry of computer applications in the unified customs register of intellectual property, negotiations and the correspondence on claims.

Representation of interests of a group of optic cable manufacturer in the course of the anti-dumping investigation performed by the Domestic Market Protection Department of the Eurasian Economic Commission regarding optic fibers from the USA and Japan.

Advising on the issues of application of preferences for investors; elaboration of the scheme related to the VAT payment; elaboration of the issue related to innovation funds, inclusion of goods into the list of innovative products, and application of tax preferences.

Legal support within the scope of implementation of a residential unit construction in Minsk, Belarus. We advised the client on taxation issues, on the procesure of employment of foreign workforce, drafting agreements on construction activities.

As part of the plant construction project, we advised the client on the required construction permits, which must be obtained from local executive authorities, on the required ecological permits, as well as on performance of turnkey contracts with construction organizations that performed certain works within the scope of the project. Besides, we helped the client resolve disputes with contractors.