21 February 2022
Economic optimism in the face of adversity, the introduction of English law instruments, and some new potential for growth are the highlights in Belarus, according to Aleinikov & Partners Senior Partner Denis Aleinikov.
“The current situation will blow over, in my opinion, as time goes by and when the dust settles business will grow,” Aleinikov says. “I do recognize that the commercial sector is struggling, due to both the pandemic and the sanctions, but I firmly believe that things will pick up.”
Aleinikov reports on significant updates with respect to commercial rules and regulations. “The parliament adopted in the first reading a draft law on amendments to the Civil Code which introduces some foreign law instruments into the domestic legal framework,” he says. Aleinikov points out that this is a crucial step forward, seeing how it opens the country up for more foreign capital flowing in. “Previously, a lot of M&A transactions were structured abroad, due to the availability of specific legal instruments – like options agreements, convertible loans, warranties and indemnities, among others,” he says. “Now, the parliament is about to approve these into our domestic legal framework.”
Aleinikov mentions that the firm’s previous work with the Belarusian High-Tech Park contributed to this. “In 2017, we developed draft legislation regarding the High-Tech Park which allowed for residents of the park to use certain instruments of foreign law in their activities, including, for example, entering into shareholders' agreements under English law,” he says. “This experiment turned out to be beneficial. Foreign IT companies now tend to structure their investment transactions into Belarusian companies inside of the country, instead of through their foreign parent companies as it was usually done before. Now the parliament intends to spread this practice to other sectors of the economy. This is a good decision.”
“According to the statistics, our economy is currently doing better than it was forecasted to a year ago,” Aleinikov reports. “The IT sector still continues to drive growth, with some major transactions for the acquisition of Belarusian R&D companies being registered in 2021.” And it's not only IT, he says. “The banking & finance sector shows good potential too. Like the recent, December 2021, Alfa-Bank acquisition of a local bank, which is evidence of trust in the domestic financial market,” Aleinikov reports. He says that these two sectors will remain key drivers of the economy. “I believe that our country has eventually exceeded expectations and that we are yet to see how far our economy can go,” Aleinikov concludes.
Director of AIMATTER
Nowadays there are not so many law firms in Belarus that are able to provide quality services to support a transaction with a non-resident, whether it is M&A or purchase of IP rights. Aleinikov&Partners is considered to be a kind of “boutique” in the Belarusian legal market among the colleagues. When we imagine the “boutique” in the sphere of legal services, such features as the competence of the company, the knowledge of corporate law and the ability to solve any non-typical tasks for Belarus in the shortest terms are in the first place and company's lawyers have such competencies. Specialists of Aleinikov&Partners are not only fluent in English, but also are proficient in professional terminology. They are sociable and interesting people who will show you, how problem solving works in practice!
Marketplace manager at Deal.by
Aleinikov&Partners law firm perfectly coped with negotiation on solving of controversial situation with the former operator of Deal.by platform. We are absolutely satisfied with both the process and the result. There is no doubt that the сooperation with Aleinikov & Partners is the case when any business-critical issues can be effectively solved by external consultants. There are no ‘’one-size-fits-all” approach to the problem solving for lawyers of Aleinikov&Partners, because their work is always based on the clients’ specific needs and they do everything possible to respond to these needs.
CEO of Lifetech
In the course of our cooperation the company has proved itself as a highly competent and reliable partner. Special thank you to the top management of Aleinikov&Partnres for being attentive to client's needs and making all of the issues be resolved very promt.
Aleinikov & Partners has assisted IDT Corporation, a NYSE-listed (NYSE: IDT) American telecommunications company headquartered in Newark, New Jersey, with the Belarusian market entry. IDT pioneers expansion of business to Belarus and subsequently joining the Hi-Tech Park among US-based public companies
Aleinikov & Partners has been advised Service Desk, a subsidiary of BPS Sberbank and a member company of Sberbank Group, which deals with software development for banking and financial activities, on joining the Hi-Tech Park
Aleinikov & Partners has advised Clevetura, a maker of an intuitive keyboard Click & Touch, on fundraising matters. The Aleinikov & Partners team assisted with LDD of IP and development of incentive schemes for key employees. We have been also advised Clevetura in the course of approving transaction documents by the investor