LegalGELegalGE
...

CIS Region Contracts

What language should contracts with CIS partners be in?

Russian is the lingua franca of business in the region. We recommend bilingual contracts (English-Russian or Georgian-Russian) to ensure clarity for all parties and courts. A clause defining the prevailing language in case of discrepancies is essential.

How do double taxation treaties work in the CIS?

Georgia has treaties with most CIS nations to prevent paying tax on the same income twice. To benefit, you or your partner must provide a Tax Residency Certificate. We advise on structuring deals to maximize these tax benefits.

What are the risks of currency fluctuation?

Local currencies in the CIS can be volatile. Contracts should include currency pegging clauses or require payment in hard currency (USD/EUR) to protect your revenue. We draft robust financial clauses to mitigate FX risks.

Is it better to litigate or arbitrate in the CIS?

Local courts can be unpredictable. Arbitration is generally safer and more neutral. Decisions from Georgian arbitration are enforceable in CIS countries under the Minsk Convention or New York Convention, providing a reliable enforcement path.

Reading Time

2 min

Published

...

Contracts with the CIS (Commonwealth of Independent States) region involve specific legal nuances that differ from European or American standards. Although Georgia is no longer a CIS member, economic ties with Kazakhstan, Ukraine, Armenia, Azerbaijan, and other post-Soviet countries remain strong. Trade in these countries often utilizes double taxation avoidance agreements and free trade regimes. However, risks are also high: unstable legislation, currency controls, and enforcement issues. This service involves drafting contracts that account for regional specifics, Russian-language documentation (if needed), and effective dispute resolution mechanisms (e.g., neutral arbitration).

What Does CIS Region Contracts Service Cover?

Legal.ge lawyers help protect regional transactions:

  • Bilingual Contracts: Preparing Russian-Georgian or Russian-English agreements, often essential for communication in the region.
  • Tax Optimization: Using double taxation treaties to reduce tax liabilities.
  • Logistics Agreements: Rail and road transport contracts (considering regional transport specifics).
  • Debt Recovery: Legal mechanisms for collecting debts from partners in the region.
  • Dispute Venue Selection: Advice on whether to litigate in local courts or international arbitration.

Real-World Scenarios Where You Need This Service

This service is relevant when:

  • Export to Kazakhstan: A Georgian company sells products to Kazakhstan. A contract protecting against currency fluctuations is needed.
  • Import from Ukraine: Importing raw materials. Detailed force majeure (war) clauses are required.
  • Joint Venture: Founding a company with an Azerbaijani partner. A shareholder agreement is needed.
  • Transit Shipment: Cargo passes through Armenia. Transit documentation needs to be in order.

Georgian Legal Framework and Regulations

Georgia has Free Trade Agreements with CIS countries (mostly bilateral). The Minsk Convention on Legal Assistance facilitates the recognition and enforcement of court judgments between member states. Double taxation treaties are crucial for tax matters.

Service Process Step-by-Step

The process includes:

  1. Consultation: Assessing the target country's legal environment.
  2. Drafting: Creating the contract (often in Russian).
  3. Negotiation: Agreeing terms with the counterparty.
  4. Enforcement Mechanisms: Including security measures (guarantees, letters of credit).

Why Choose Legal.ge?

Doing business in the region requires knowledge of not just the law but also the "rules of the game." Legal.ge lawyers have experience working in the post-Soviet space and will help you manage risks.

Updated: ...

Specialists for this service

Loading...