At the end of 2023 US President Joe Biden signed into law The Foreign Extortion Prevention Act (FEPA), which brings about major changes to global anti-corruption protocols.

FEPA enables US prosecutors to bring criminal charges against any “foreign official” who seeks or accepts a bribe from a company or individual conducting business in the US, even when the unlawful activity occurs outside US borders.

The key innovation is that FEPA addresses the “demand” side and criminalises making requests for, and accepting, bribes. This law also expands the definition of a “foreign official” to cover all formal and informal employees and agents of foreign officials, including those working in an unofficial capacity. In addition FEPA encourages companies to report to the US Department of Justice any requests or demands for bribes made by foreign officials and their agents.

Although the old Foreign Corrupt Practices Act (FCPA) is regularly utilised to penalise US-based individuals and companies that engage in bribery or other corrupt practices for the purposes of influencing foreign officials, until now there has been no means of taking legal action against foreign officials who receive or solicit bribes.

The penalties under FEPA go up to a maximum of $250,000 or three times the amount of the bribe received, as well as up to 15 years in prison.

It seems that FEPA is set to transform and further expose the global culture of corrupt practices, especially in those nations with US investments. The question of whether Europe will also embrace these practices and their likely impact on the Western Balkans remains open.

On 13 October 2023 a new regulation governing solar and wind power plants’ connection to Serbia’s transmission and distribution system came into effect. This update brings significant changes to the process of connecting new power generation facilities.

For initial connections, in addition to the construction permit, a connection feasibility study and agreement must now be drawn up. Submission deadlines for connection studies have also been defined, with the Serbian Transmission System Operator (EMS) conducting studies biannually. It is important to highlight that the first connection study period begins on 20 December 2023, with a submission deadline of 1 December 2023. In addition, connection studies can become invalid if certain conditions have not been met, including a failure to provide an investor bank guarantee within 60 days in order to ensure the timely conclusion of contracts, approvals and construction.

On another note, deposit requirements based on capacity have also been introduced, with varying set fees for different capacity levels.

Once approval for connection to the transmission system is granted, this can now be issued for a three-year period and can also be extended once for up to two additional years if requested by the investor.

In summary, these regulatory changes are expected to streamline the process of connecting power generation facilities to the grid and are designed to bolster the security and reliability of Serbia’s electrical energy supply.

Recent amendments to the Regulation on Clinical Trials of Medicinal Products in Human Medicine have recently been adopted and take effect from 11 October 2023. These mainly involve changes to the provisions that regulate the requirements governing the status of Principal Researcher, as well as introducing new obligations for clinical trial sponsors.

Sponsors must now – in addition to other essential documentation – submit a document to the Agency for Medicines and Medical Devices of Serbia (ALIMS) entitled “Institutional Consent in accordance with the statute to conduct research in the healthcare institution” in order to gain approval for clinical trials. This must include a statement that the proposed Principal Researcher meets the requirements set out in these latest amendments.

We are thrilled to announce that NSTLAW will be participating in the forthcoming South Eastern Europe Arbitration Conference to be held on 12 October in Vienna. Our Senior Partner, Mr. Nenad Stankovic, has been chosen as a key speaker at one of the event’s major panel sessions entitled “Transformation of Disputes in the Region”.

Mr. Stankovic will be in distinguished company, sharing the stage with eminent personalities like Khawar Qureshi KC, Jennifer Morison Ersin, Lazar Tomov, Eric Leikin, and Dr. Johannes P. Willheim. The panel session promises to provide some insightful observations, with Ms. Deger Boden taking the role of moderator.

With a robust track record of acting as counsel before well-respected bodies like ICSID and ICC, our regular involvement in arbitration cases makes this conference particularly relevant. We are looking forward to continuing our role in shaping future discussions in the arbitration arena. More information about the conference can be found by clicking on the following link.

Independent ratings publication IFLR1000 recently announced the launch of its 2023 rankings covering the best law firms and lawyers in Europe. We are delighted that Stankovic & Partners has once again been ranking as a leading firm across the board. Our team was ranked in Tier 3 of the Financial and Corporate tables, as well as in Tier 4 for Project Development.

It is even more satisfying to know that feedback to the researchers included the fact that our clients value our “attention to detail and profound understanding of the business needs and analysis of the issues”, as well as commending the team at Stankovic & Partners for being “highly responsive in tight deadlines”.

Nenad Stankovic, Senior Partner at Stankovic & Partners, was also recognised as a highly regarded lawyer in the IFLR1000 rankings, marking him out as one of the elite practitioners in Serbia.

For more information please see the full rankings at: Serbia – Jurisdiction Rankings | IFLR1000.

The Republic of Serbia is adopting the “Rulebook on amendments to the Rulebook on documentation and methods for importing drugs that do not have a medicine licence, i.e. medicines not registered in the register of medicines (Official Gazette of the RS no. 75/2023)” – something that is leading to a number of key changes from 14 September 2023. These include:

• Structured Import Procedures – The Medicines and Medical Devices Agency (ALIMS) has established a structured process for initiating import requests, ensuring transparency and efficiency.
• Documentation Requirements – Importers must now provide comprehensive documentation, such as product details, manufacturer certifications, and clinical trial data as appropriate to the product in question.
• Research Imports – Scientific research related imports also require detailed research plans and permits to promote responsible research practices.
• Humanitarian Aid – For humanitarian purposes, importers must specify donor and recipient details, further ensuring transparency in aid efforts.
• Ethical and Medical Compliance – Importers must comply with appropriate ethical and medical standards, obtaining approval from relevant ethics committees and healthcare professionals to justify their activities.
• Agency Approval – The Medicines and Medical Devices Agency (ALIMS) will review and approve import requests, prioritising key healthcare needs.
• Strict Control – Imported products must adhere to strict packaging and storage requirements in order to guarantee safety and efficacy.

These new provisions will help to improve Serbia’s commitment to addressing current healthcare challenges effectively while maintaining ethical and medical integrity.

We are very pleased to announce that the team at Stankovic & Partners, working closely with global law firm Squire Patton Boggs, recently secured a notable victory for Canadian national Mr William Rand in an ICSID arbitration against the Republic of Serbia.

In its decision of 29 June 2023, the arbitration tribunal awarded our client damages of EUR 14.5 million plus interest as a consequence of the unlawful termination of a privatisation agreement.

The case stems from a 2005 transaction in which Mr William Rand purchased a 70% beneficial stake in one of the largest dairy farms in Serbia, BD Agro, involving a privatisation agreement concluded between Mr Djura Obradovic and the Privatisation Agency. The Agency decided to terminate the privatisation agreement in 2015, expropriating the title over the company’s shares and establishing corporate control over BD Agro. Our client, Mr William Rand, then filed a request for arbitration in 2018 with ICSID, seeking protection for his beneficial stake and investment in BD Agro.

The tribunal recognised that, as Mr Rand was the one bearing the financial burden of the investment, in exchange he had acquired an interest in the beneficially owned shares in BD Agro and therefore exercised control over BD Agro’s operations and management. It was ultimately concluded that the Republic of Serbia had breached the fair and equitable standards envisaged in article 6 (1) of the Canada – Serbia bilateral investment treaty by unlawfully terminating the privatisation agreement and seizing Mr Rand’s beneficially owned shares, which had been effected through the exercise of sovereign powers by the Agency. The Tribunal stated that a privatisation agreement could not be terminated after the purchase price had been paid by a buyer for an alleged breach that had occurred before the transaction had taken place.

The team […]

Introduction

In our increasingly interconnected world, where international trade, cross-border transactions and global mobility are the norm, establishing an efficient and co-ordinated system for recognising and enforcing foreign judgments has become of paramount importance. However, the diversity of legal systems and lack of a unified framework often pose considerable challenges when it comes to enforcing judgments across national borders. That means that introducing a global system to facilitate the recognition and enforcement of foreign judgments is a pressing matter that could provide greater certainty in relation to legal outcomes, as well as facilitating international commerce and promoting improved access to justice.

The end of August 2023, therefore, could mark the end of an era in private international law as the Hague Convention of 2 July 2019 on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters (“2019 Hague Convention”) comes into force on 1 September 2023. This should provide the long-waited global legal framework for the recognition and enforcement of foreign judgments.  It isn’t that solutions have not been proposed before – on the contrary there have been several concerted efforts to put in place an appropriate recognition and enforcement system. Two of these are of particular note: one resulted in the successful 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which established a now aging but reliable system for the recognition and enforcement of foreign arbitral awards; the other was the unsuccessful Convention of 1 February 1971 on the Recognition and Enforcement of Foreign Judgments in Civil and Commercial Matters (“1971 Hague Convention”).

Previous global initiatives

The recognition and enforcement of foreign judgments were formerly governed by a patchwork of international conventions, bilateral treaties, and national laws. The abovementioned 1971 Hague Convention was an ambitious effort […]

‘Little things that are crucial for legal trainees’ (“Male stvari koje pripravnički život znače”) was the title of a lecture given on 10 May by Stankovic & Partners team members Sara Pendjer, Mitar Simonovic and Teodora Markovic at Belgrade University’s Faculty of Law.

The talk focused on the key qualities essential for success in the legal profession. In particular, the speakers covered issues like punctuality, having a sense of curiosity, taking responsibility, meeting deadlines and managing research efficiently.

Sara, Mitar and Teodora helped to convey complex legal principles in clear and relatable terms, as well as sharing their real-life career examples with the students. They outlined the day-to-day challenges faced by legal professionals and gave practical insights into potential career paths and tips on how to ensure success.

If you are passionate about pursuing a career in law, we would encourage you to consider applying for one of Stankovic & Partners’ own Legal Trainee roles by sending your CV to office@nstlaw.rs.

The application process for incorporating a company will be changing to an exclusively electronic format from 17 May 2023, in accordance with the latest amendments to the Law on the Registration Procedure at the Agency for Business Registers. There are a number of key issues arising from this change that we seek to clarify below:

Who can submit an e-application to register a company in the Register of Business Entities?

The e-application can be submitted by a natural person (founder – future shareholder of the company) or by a person who is authorised by the founder (for example, a lawyer) to submit the e-application to the Serbian Business Register Agency (“SBRA“). If the applicant is a founder, he would sign the e-application with his qualified e-signature. If the applicant is a lawyer, he would sign the e-application with his own qualified e-signature, and the attachment would need to include a power of attorney in the form of an electronic document (signed by the founder of the company with his e-signature or signed with the founder’s handwritten signature and then digitised by a lawyer/notary).

Does the document submitted with the electronic application need to be in electronic form?

In relation to the e-registration procedure, all submitted documents must be in electronic form. It is essential to understand the difference between documents that the founder (or his representative) himself originally draws up in electronic form (such as the shareholder agreement) and signs with his qualified electronic signature, from documents issued by third parties or by the authorities, which must be authenticated with the qualified e-signature of an authorised person within the organisation that issued the document.

If the founder registers a company and does not have any of the documents he is required to submit in electronic form, he […]