Moving business economic links to Europe and the rest of the world

Following the Russian Federation’s large-scale military aggression against the sovereign state of Ukraine, the European Union and the international community as a whole have imposed economic sanctions on the Russian Federation and the Republic of Belarus, which is a party to the aggression.

The turning away of international business from the Russian economic market is a statement of value in order to put an end to the military aggression against Ukraine as soon as possible. Businesses are facing a value challenge, the issue of redundancies, which is preventing them from taking a decisive step.

Prevence Law Firm wants to help businesses to provide all the necessary legal assistance to relocate their economic ties to European and other parts of the world. European countries are ready to provide a safe and stable environment for all international, globally-minded businesses and their employees from Ukraine, Belarus and Russia. Lithuanian authorities are also already preparing financial and regulatory support packages for businesses relocating to Lithuania from war-affected countries.

Our lawyers are members of the Euro Start Entreprises network of strategic service providers. As a member of a network of partners in more than 30 countries around the world, we are able to offer a high level of legal services worldwide. In cooperation with businesses, we can help you efficiently and quickly execute the highly complex process of business relocation: we perform all the necessary procedures for setting up a business and ensure successful cooperation in representing your business before the necessary authorities, advise on business relations and employee relocation to other markets, provide legal assistance and advice both during the establishment of the business and after it has been established and started its operations.

What is important for employers to know?

Citizens of Ukraine, their family members and stateless persons residing in Ukraine, who have left Ukraine for the Republic of Lithuania due to the military actions of the Russian Federation, are in all cases exempted from the obligation to obtain a work permit in the Republic of Lithuania and/or a decision on the compliance of the foreigner’s work with the needs of the labour market of the Republic of Lithuania, therefore, employers of the Republic of Lithuania who intend to recruit them do not have to apply to the Employment Service for the issuance of work permits and/or decisions on the compliance of the work.

Citizens of Ukraine who enjoy a visa-free regime or have a valid Schengen visa, as well as citizens of Ukraine who have received a national visa issued on humanitarian grounds or a temporary residence permit in Lithuania, will have the right to work and will be exempted from the obligation to acquire a work permit;
those who have applied for a temporary residence permit in Lithuania for the purpose of work will be exempted from the obligation to obtain a decision of the Employment Service on the compliance of the foreigner’s work with the needs of the labour market of the Republic of Lithuania and will be able to start working immediately;
the right to work will also be granted to Ukrainian citizens who have applied for asylum in the Republic of Lithuania;
no state fee will be charged for the examination of applications for a national visa or temporary residence permit and the adoption of decisions on them.

Vacancies can be registered on the website of the Employment Service using electronic services. When registering a job, you will be able to use the “for Ukrainians” tag, and if the job offer is only for foreigners, we recommend that you submit the description in English or Russian.

Information based on the Employment Service under the Ministry of Social Security and Labour of the Republic of Lithuania (uzt.lt).

If you have any questions about migration law or employment, you can contact Prevence Law Firm, whose experts are ready to help you free of charge.

You can contact us by email – info@prevence.legal

The Russian government has drafted a law on the possible sale and nationalisation of foreign companies if they withdraw from Russia or face unjustified liquidation or bankruptcy. The aim is to prevent the increasing withdrawal of international brands and companies from Russia and potentially lay the foundations for their nationalisation. Such an external management plan would be imposed by an arbitration award.

According to the disclosed draft law, Russia would have the right to take over foreign businesses for up to three months in cases where the managers of foreign companies decide to “de facto” cease operations and management of the business. Also, when foreign companies take actions that could lead to their “unjustified” liquidation or bankruptcy, the government would have up to six months to nationalise them.

Nationalisation would apply to Russian-registered companies that are linked to foreign natural or legal persons hostile to Russia, that own at least 25% of the voting rights or shares and that have a balance sheet value of the company and its assets of more than €1 billion. RUB 1,5 billion and/or the average number of employees is more than 100.

The shares of such foreign companies would be auctioned and, in case of failure, transferred to the Russian Federation.

The aim of this law is to force foreign companies not to leave and to choose to continue working while accepting losses. Once the Russian Federation has taken decisions on external management, the owner of the business will have five days to inform that he is resuming operations or selling his shareholding to ensure that the employees and the operation of the business are maintained.

Experts point out that in order to avoid external administration, it is possible to sell part of the shareholding so that the shareholding of a foreign person from an “unfriendly” state is less than 25%.

If your business is exposed to risks related to the decisions of the Russian and/or Belarusian governments, we invite you to contact the experts at Prevention who will help you to provide all the necessary assistance to mitigate your losses and business risks.