Ketler & Partners member of Karanovic

Axpo Group has signed a long-term power purchase agreement (PPA) for renewable energy, the very first one concluded on market terms for the offtake of electric energy produced from renewables in Serbia.

A leader on the car industry market, the German company ZF opens its factory in Pančevo within the first phase of the EUR 160 million investment. The factory will start producing machines, generators for hybrid and electric drives, gearshift switches and microswitches in the first half of June.

Mid Europa Partners, the leading private equity investor in Central and Eastern Europe, announced today the agreement to sell its shares in Knjaz Miloš to a joint venture between Karlovarské Minerální Vody (KMV) and PepsiCo, Inc. (PepsiCo). The transaction is currently subject to customary regulatory approval and is expected to close in Q3 2019.

We are proud to announce that Karanovic & Partners is the 2019 winner of the prestigious Law Firm of the Year award, in the Eastern Europe and the Balkans category. This is the third time that Karanovic & Partners is selected among some of the best law firms in Europe to take home this renowned accolade, awarded by The Lawyer Magazine.

Coca-Cola HBC announced the agreement to acquire Bambi, the leading Serbian biscuit and confectionary maker, from Mid Europa Partners, the leading private equity investor in Central and Eastern Europe. Karanovic & Partners, working together with White & Case and KPMG, advised Mid Europa Partners in this transaction – which is now subject to customary competition authority clearance and is expected to close in the second quarter of 2019.

We are proud to announce that Karanovic & Partners has once again been top-ranked on the most recent Chambers Global leading law firm listing. The 2019 Chambers Global guide highlights the Corporate & Commercial practice group in the jurisdictions of Montenegro and Serbia as belonging to band 1.

After winning the Deal of the Year Award in 2018, Karanovic & Partners is this year once again in the finals for this prestigious accolade – this time with 5 deals and in 5 jurisdictions. Organized by the renowned CEE Legal Matters magazine, these awards are a way of recognizing the biggest and most important deals by law firms in Central and Eastern European jurisdictions.

Karanović & Partners is pleased to announce that Milorad Gajić, Andrej Jelenković, Mina Srećković, Amina Đugum and Lejla Popara, have been named Senior Associates.* These talented individuals have established themselves as key members of our team, and their promotion reflects their professionalism, as well as exemplary service to clients.

Karanovic & Partners is proud to support Epic Games in their acquisition of 3Lateral, the leading developer of digital humans technology and creative content.

After a long, complex and nation-wide discussion, on 9 January 2019, the Macedonian Parliament introduced stricter rules for obtaining exploitation concessions. Effective immediately, the novelties from the Minerals Law target potentially new mines, and they came as a result of the broad interest shown during the last couple of years concerning the environmental effects of the mining sector, expressed by rallies, local referendums, constitutional challenges and various debates.

Zijin Mining, one of China's biggest gold producers and the second biggest producer of copper ore, became a major shareholder of the Serbia's sole copper complex RTB Bor. The Chinese company pledged to invest USD 1.46 billion in return for a 63% stake. Karanovic & Partners advised Zijin Mining in this privatisation procedure. The services performed by the Karanovic & Partners legal team – led by Senior Partner Miloš Vučković and Partner  Ivan Nonković, included legal advisory, a due diligence of RTB Bor, the review, analysis and negotiations of the transaction documents, as well as assistance in the privatisation process. Copper ore has been excavated and melted for more than 100 years in RTB Bor, which contributes 0.8% to the country's GDP.  Zijin Mining Group Company Limited is a leading a Chinese gold, copper and non-ferrous metals producer and refine. The company employs more than 17 thousand workers in nine countries, and last year it was the 22nd most valuable mining company in the world. Zijin's annual operating income amounts to EUR 10 billion, with net profits exceeding EUR 230 million. Zijin has pledged that it would keep all 5,000 workers currently employed in RTB Bor. * Independent attorney at law in cooperation with Karanović & Nikolić.

We are honoured and delighted to announce that Karanovic & Partners won the Stanton Chase Talent Management Award in the Most Innovative Locally Developed Talent Programme category. These prestigious accolades are organized by  Stanton Chase, the leading international retained executive search and consulting firm and are now in their fifth year.

The Government of the Republic of Serbia extended the validity of the Decree on Incentive Measures for the Production of Electric Energy from Renewable Energy Sources and High-efficiency Cogeneration of Electric Energy and Thermal Energy (Decree) until the end of 2019. It was initially valid until the end of 2018.

Zijin Mining, one of China's biggest gold producers and the second biggest producer of copper ore, won the tender to become a strategic partner in Serbia's sole copper complex RTB Bor. The Chinese company pledged to invest USD 1.46 billion in return for a 63% stake. Karanovic & Partners advised Zijin Mining in this privatisation procedure. The services performed by the Karanovic & Partners legal team – led by Senior Partner Miloš Vučkovićand Partner ⃰ Ivan Nonković, included legal advisory, a due diligence of RTB Bor, the review and analysis of the transaction documents, as well as assistance in the privatisation process. Copper ore has been excavated and melted for more than 100 years in RTB Bor, which contributes 0.8% to the country's GDP.  Currently mining contributes 0.9 to 1% of Serbia's GDP, however, the aim is to raise this amount to 5%. By itself, RTB Bor. Zijin Mining Group Company Limited is a leading a Chinese gold, copper and non-ferrous metals producer and refine. The company employs more than 17 thousand workers in nine countries, and last year it was the 22nd most valuable mining company in the world. Zijin's annual operating income amounts to EUR 10 billion, with net profits exceeding EUR 230 million. Zijin has pledged that it would keep all 5,000 workers currently employed in RTB Bor. ⃰ Independent attorney at law in cooperation with Karanović & Nikolić.

We are proud to announce that Karanovic & Partners won the Euromoney Real Estate Survey in the Advisors and Consultants category for the second year in a row! Karanovic & Partners was once again chosen as the Number One Legal Service provider in Serbia in the Real Estate industry. "It is truly a privilege to be honored with this award for the second time. This recognition attests Karanovic & Partners's commitment to outstanding client service, as well as the expertise and professionalism of our Real Estate team", said Rastko Petaković, the Managing Partner at Karanovic & Partners. The Euromoney Real Estate Survey canvasses the opinions of the leading firms involved in the real estate sector worldwide – the advisors, developers, investment managers, banks, and corporate end-users of real estate are all invited to take part. These awards, now into their 14th year, are a way of recognising the leading providers of real estate products and services. The renowned Euromoney magazine was created in 1969, originally to cover the re-emergence of the international cross-border capital markets. Today, their specialised journalists bring an authoritative round up of banking, capital markets, investment, foreign exchange & treasury, and regional markets including Asia, Latin America, and EMEA.

The beginning of the summer brought amendments to several employment-related laws. The most notable changes are presented below: The Law on the Employment of Foreigners The duration of the labour market test - The labour market test within the work-permit acquisition process (through which the National Employment Service examines whether there are any Serbian citizens suitable for the vacant position), is shortened to 10 days, having previously lasted one month. This amendment is expected to expedite the procedure of issuing work permits. A new type of work permit is introduced - the temporary work permit. This permit may be issued in cases of national interest or for the purpose of fulfilling Serbia's international obligations. In this case, the labour market test may even last less than 10 days, upon the Minister of Labour's decision. The temporary work permit may be issued with consent from the Minister of Interior to a foreigner who applied for a temporary residence permit, with a validity period of up to 45 days.

The Serbian Parliament adopted amendments to the Serbian Company Law (Law) on 8 June 2018, and they were published in the official journal on the same date.  

Rastko Petaković, managing partner at Karanović & Nikolić, held a presentation of the latest private equity trends CEE region on the 2018 Balkans M&A and Private Equity Forum. Organized by Mergermarket, a leading media company that provides specialist news, research, analysis and data on financial markets, this is the second year this conference was held in Belgrade.

Following a tip, the Serbian Competition Commission (the "Commission") recently started investigating the business relationship between GR Sport and Polanik, a Polish company, concerning an alleged infringement of competition – the conclusion of a restrictive agreement which was not notified for prior exemption under the applicable legal framework.

We are pleased to announce that Karanović & Nikolić has won the 2017 Deal of the Year Award for Serbia for the EBRD and IFC financing of Vetrolektrane Balkana - Čibuk 1 Windfarm. Organized by the renowned CEE Legal Matters magazine, this is the first year that these awards were held and they are a way of recognizing the biggest and most important deals by leading law firms in Central and Eastern European jurisdictions.

In March 2018, the new Serbian Law on Foreigners was adopted, replacing the 2008 version of this law- in force until recently without any amendments. The new law will enter into force on 3 October 2018.

On 20 April 2018, the amendments to the Law on Foreign Exchange (the “Law”) were adopted and will enter into force on 28 April 2018. Exceptionally, the application of certain provisions related to the assuming of competencies over foreign exchange control by the National Bank of Serbia is delayed until 1 January 2019.

Artificial intelligence is a burning topic in many sectors today and the legal industry is no exception. Recently, at the World Services Group’s annual employment law conference held in February, AI was heavily debated along with its’ impact not only on the legal profession, lawyers, clients, the way business is done, but also our traditional understanding of concepts such as “law” or “justice”.

As of recently, state aid control is a part of the Montenegrin Competition Agency's (the "Agency") scope of authority. The Montenegrin Parliament enacted a new State Aid Control Law (the "State Aid Law"), largely aligned with the EU legal framework - especially with Articles 107 and 108 of the TFEU. In the institutional sense, the new law grants the Agency the competence for reviewing state aid, since the former State Aid Commission was not considered a sufficiently operationally-independent authority - which represented an issue in Montenegro's EU accession negotiations (Chapter 8).

We are proud to announce that Karanović & Nikolić and its cooperating lawyers have once again been recognized as a top tier legal practice on the 2018 Legal 500 list of leading law firms. This prestigious UK-based directory provides comprehensive worldwide coverage on recommended law firms.

With record breaking attendance this year, Karanović & Nikolić continued its traditional support to the Belgrade pre-moot and X Belgrade Arbitration conference, organized by the University of Belgrade, Faculty of Law.

Maja Jovančević Šetka, partner ⃰ at Karanović & Nikolić's Banking & Finance practice group, held a presentation titled "Risk Participation Agreement – Collateral or Derivative, Implementation of the Law on Foreign Exchange Operations" at a symposium for lawyers in Serbian banks. Organised by the Association of Serbian Banks, the conference was held at Lake Palić in Serbia, on the 8th and 9th of March, under the title "The Status of Banks and Legal Protection".

Karanović & Nikolić, together with White & Case as lead international counsel, advised PPF Group, the Czech investment firm, on the EUR 2.8 billion acquisition of Telenor's assets in Central and Eastern Europe. The transaction includes the Norwegian telecoms firm's mobile operations in Bulgaria, Hungary, Montenegro and Serbia, as well as the technology service provider Telenor Common Operation. The transaction requires necessary regulatory approval and is expected to be completed within Q3 2018.

Tamara Bubalo, Associate in Karanović & Nikolić's Intellectual Property practice group, held a presentation on 5 March at the "Intellectual Property in Serbia" conference. Organized by the European Law Students Association (ELSA) as part of the "IP Law in Serbia" project, the event was held at the University of Belgrade, Faculty of Law< premises and was attended by more than 140 eminent legal and business professionals and students.

On 21 March, Karanović & Nikolić held its traditional student workshop titled “Managing Emotions in Labour Disputes – More than Law”. The event was organised in cooperation with the University of Belgrade, Faculty of Law.

We are proud to announce that Karanović & Nikolić has once again emerged on top of the rankings on the most recent list of leading European law firms – the prestigious Chambers Europe 2018. This year's edition of the Chambers Europe has highlighted seven different practice areas within the Karanović & Nikolić legal practice and cooperating offices as belonging to top tier level – Corporate/Commercial, Banking & Finance, Competition/Antitrust, Dispute Resolution, Employment, Energy and Real Estate.

Alltech - a leading global animal and crop nutrition company, sold its baking yeast factory in Senta, in northern Serbia, to Lesaffre - a leading global baking yeast and fermented products company. The acquired factory will continue to produce baker's yeast for the Serbian market and yeast extracts for the food and animal feed industries. The transaction is in line with Alltech's continued focus on its core business in animal and crop nutrition.

The Serbian Competition Commission (the "Commission") recently fined four undertakings for bid rigging in the public procurement for the maintenance of train wagons. The contracting authority, the "Nikola Tesla" power plant, which represents the largest electricity-producing complex in Serbia, informed the Commission about possible collusion in public procurement for repair services for the train wagons it uses in coal transportation.

After winning the Law Firm of the Year awards in 2014 and 2017, Karanović & Nikolić is once again a finalist for this prestigious recognition. The awards, now in their ninth year, are organised by The Lawyer, a prestigious British weekly magazine for lawyers and in house counsel. According to the organisers, this year's contest is particularly fierce.

Karanović & Nikolić is pleased to welcome Marko Ketler as its new Senior Partner, as well as Ivan Nonković, Goran Radošević, Ivana Dišović, Katarina Gudurić, Jaka Simončič and Petar Mitrović who have been named Partner. We are proud to announce the promotion of these attorneys at law cooperating with Karanović & Nikolić who have demonstrated their utmost professional excellence and in such a way contributed to strengthening our international practice and furthering the legal network’s reputation as a regional legal powerhouse.

The national competition authorities in South Eastern Europe are evidently increasing and strengthening their cross-border cooperation and communication, allowing for a more effective regional approach in the protection of competition. Taking into account common challenges and economic interdependence, as well as similar goals in EU integration, the authorities appear to have recognized significant merit in a broader regional framework for competition enforcement.  

Karanović & Nikolić advised on Societe Generale Srbija's acquisition of a part of Jubanka's credit portfolio – which included housing and cash credits, credit cards, as well as credits for small and medium-sized enterprises. Societe Generale Srbija is now the third largest bank in Serbia in terms of credit volume.

arbitrationAfter two long years of analysing and debating, the Serbian Parliament adopted changes to the Bankruptcy Law and they have entered into force on the 25th of December, 2017.

Ever since the latest Law on Enforcement and Security entered into force on the 1st of July, 2016, an issue arose over the wording and scope of Article 48, dealing with how creditors acquiring claims can initiate enforcement. The main idea behind this new law was to make it easier for creditors to collect claims.

Hungary's OTP Bank bought Vojvođanska Banka, as well as NGB Leasing and the National Bank of Greece's corporate loan portfolio in Serbia. This is one of the biggest recent banking transactions in the region and it was closed on Friday, the 1st of December in Belgrade. Karanović & Nikolić advised the buyer – OTP Bank, one of the leading banks in Central and Eastern Europe, throughout all of the stages of the acquisition process.

Karanović & Nikolić hosted the "Empowering Students to Enter the Workplace" HR conference, held on the 30th of November in Belgrade, Serbia. The event was organised in cooperation with Stanton Chase, one of the top 10 global retained executive search firms, and the guests and panellists included leading professionals in the field of human resources, as well as employment law experts.

Karanović & Nikolić, together with the Friedrich Naumann Foundation for Freedom, hosted the th of November, 2017, at the Metropol Palace hotel, Belgrade. The conference represents a traditional yearly gathering of experts from the business and legal community, as well as key regulators and stakeholders, to discuss the most important issues and practical implications in field of competition law.

The National Employment Service changed its years-long practice regarding the extension of work permits for persons on secondment. In particular, pursuant to Article 19 of the Law on the Employment of foreigners, work permits based on secondment are obtained for a period of the duration of an agreement between the local employer - who is the service user, and a foreign employer, but no longer than for one year. Exceptionally, a work permit for a seconded person can be issued for a longer period in case the employee is seconded from a country with which the Republic of Serbia has concluded a secondment related bilateral convention.  

The Slovenian National Assembly adopted the Class Action Law, which will implement an important institute to the Slovenian legal system, i.e. mechanism of class action. This mechanism is already applied in the UK, Belgium, Netherlands and Sweden, but is yet to be implemented in numerous EU member states. The new mechanism of class action will provide for the injured parties, both natural and legal persons, to file a compensation claim in case of mass harm situations. Besides a collective action for compensation, the law also provides for the possibility to file a collective action for the cessation of illegal behaviour against the infringers, as well as the procedure of collective settlement in case of mass harm events. The law will come into force on the 21st of October, 2017, while it will apply with effect from the 21st of April, 2018.

Karanović & Nikolić advised in the signing of the biggest PPP project in Serbia for the landfill remediation and development of the waste treatment facility in Belgrade, Vinča. The Belgrade Secretariat for Environmental Protection, the company "Beočista Energija" and the French-Japanese consortium, SUEZ Groupе - I-Environment Investments limited, signed a public-private partnership for the financing, construction, operation and maintenance of the waste management treatment and disposal centre in Serbia.

Karanović & Nikolić advised AmSpec on the acquisition of Agri Services doo - an inspection and testing company serving the Agricultural and Petroleum market in the Danube region from their locations in Serbia and Hungary. The acquisition of Agri Services shows AmSpec's continued expansion into the Agri-market and is yet another strategic step for the company, as it maintains its focus on expanding its global service network.

We have seen emerging markets in Central and Eastern Europe opening up and developing quite quickly. Some of them have done so through their ascension to the European Union, and others by organising their legislation in accordance with European standards, opening up borders, having foreign investors come in, as well as putting in place free trade agreements and investment incentives.

Karanović & Nikolić, in cooperation with the global law firm Weil, Gotshal & Manges LLP, advised OTP Bank – one of the leading banks in Central and Eastern Europe, on the acquisition of Vojvođanska Banka. The National Bank of Greece signed an agreement to sell its Vojvođanska Banka unit in Serbia and NGB Leasing, as well as its corporate loan portfolio in Serbia to Hungary's OTP Bank, for 125 million euros.

On the 22nd of July, 2017, the Law on Actions for Damages for Competition Law Infringements came into force in Croatia (the "Law"), implementing the EU Damages Directive​. Even though the existing Competition Law provides for the possibility of private enforcement in a relatively general manner, private claims for damages suffered from antitrust breaches have been underdeveloped and rarely utilised in Croatia (and in the rest of the region).

Karanović & Nikolić advised River Styxx Capital on the acquisition of Telenor Banka. The companies signed an agreement by which the Bulgaria-based investment fund will acquire 85% of Telenor's shares in the Serbian online bank. Under this agreement of strategic partnership, the Norwegian telecommunications group will keep 15% of its shares in Telenor Banka.

On the 8th of June, 2017, the Court of Justice of the European Union (CJEU) reached an important decision in the case Medisanus d.o.o. v General Hospital Murska Sobota (C-296/15) concerning public procurement procedures. The judgement is relevant from both the procedural aspect - since the National Review Commission (DKOM) was acknowledged for the first time as a “national court” for the purposes of Article 267 of the Treaty on the Functioning of the European Union (TFEU), as well as from the substantive point of view – due to the emphasis on the principle of equal treatment and the prohibition of discrimination within public procurement procedures.

The Croatian Competition Agency (the "Agency") initiated proceedings against Grand Auto – an authorised dealer of Land Rover and Jaguar cars for Croatia, after an initiative by the Auto Dealership "Karlo", a former authorised repairer of the said cars for Croatia. The proceedings were initiated in order to establish whether an abuse of a dominant position, in the provision of repair and maintenance services for the car-makes Land Rover and Jaguar, occurred on the territory of the Republic of Croatia. In March 2017, the Agency closed the proceedings by reaching a non-infringement decision.

The turmoil within the Croatian retail company Agrokor, which owns Mercator, the largest Slovenian retailer, caused a significant stir in the Slovenian public, with the suppliers and especially in politics. The response of the Slovenian Government – with which additional measures for the protection of Mercator as a company of systemic importance are being established is also the Act on Conditions of Appointment of Associate Member of the Management Board in the Companies of Systemic Importance for the Republic of Slovenia. The Act was adopted by the Parliament on the 25th of April, 2017. It will become valid immediately on the day following its adoption.

Competition authority imposes fines on ViktoriaOil and Vital, the leading producers of cooking oil in Serbia. The authority stated in its decision that the two companies entered into a joint production agreement that featured restrictive provisions. In particular, the authority claims that the provisions effected the exchange of information and joint production and sales in a way that led to increased prices to end consumers. The authority has engaged in a detailed analysis of the effects on price using regression analysis and other econometric tools on this market with perfect substitutes. VictoriaOil and Vital are fined approximately EUR 186,297 and EUR 64,799, respectively, which amounts to 0.33% of the total annual turnover realised in Serbia in 2014 by each of the companies. The two companies will now have the opportunity to challenge the Competition Commission's decision before the Administrative court - acting as the second instance court in anti-trust cases. As a reminder, in accordance with Article 10 of the Serbian Competition Law, restrictive agreements are agreements between undertakings, which have as their object or effect the significant prevention, restriction or distortion of competition within the territory of the Republic of Serbia. Restrictive agreements can take various forms, written and oral, and may yield fines of up to 10% of the turnover realised on the Serbian market in the year preceding the initiation of proceedings. The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.

For several years now, a leniency model exists in Macedonia and it is shaped in line with the EU leniency model. Nevertheless, the Macedonian Competition Commission ("Commission") decided to refine the existing rules (contained in the Law on Protection of Competition and the accompanying Leniency Regulation) by recently adopting the Leniency Guidelines ("Guidelines").

In March 2017, the Montenegrin Agency for the Protection of Competition carried out an unannounced inspection (dawn raid) at the business premises of Sava Trans d.o.o. Cetinje, a company engaged in freight transport, in order to collect data necessary for undertaking further actions carried out by the Agency. In its public statement, the Agency stated that the dawn raid was conducted fully in line with the Law on the Protection of Competition, whereas the raided company showed a high degree of cooperation.

Following a four month-long Phase II investigation, the Serbian Competition Commission granted conditional clearance to SBB's takeover of IKOM. This consolidation of leading cable operators in Belgrade represents a landmark case for the Serbian authority and is related to global trends in consolidation of cable network operators, which fosters the investments necessary for improvements to network infrastructure and competition with IPTV, OTT and satellite content providers. The merger provided an opportunity for the Commission to investigate the workings of the Serbian telecom sector in detail, especially in relation to fixed telephony, broadband Internet and the distribution of media content.

​Resale price maintenance and price-fixing has been and still is under scrutiny by the Croatian Competition Agency (the "Agency"). Carrying on from a number of high-profile cases, in February 2017 the Agency fined Gorenje Zagreb, a subsidiary of Slovenia's premier manufacturer of household appliances for HRK 1,557,000 (approximately EUR 206,000).

The Lawyer Magazine, a weekly British magazine for top Commercial Lawyers and In-House Counsel, has named Karanović & Nikolić law firm of the year for Eastern Europe and the Balkans during their annual European Awards ceremony on March 16, 2017 in London. The awards, now in their eighth year, were the first initiative of their kind to reward and celebrate excellence across the European legal market. This year the Awards focused on and recognised the growing importance of cross-border instructions to firms across the continent.

We are pleased to announce that Karanović & Nikolić team has supported the European Fund for Southeast Europe (EFSE) in a recently closed extension of the investment portfolio of EFSE to UniCredit Bank Serbia. The transaction involved new EUR 20 million financing of UniCredit Bank Serbia, which will serve to finance housing loans for private households in Serbia.

After having prepared the first draft of the new data protection law back in 2014 (which was ignored by the Government in the meantime, and even dismissed by the Ministry of Justice's introduction of a separate draft law in 2015), the Serbian Data Protection Commissioner ("Commissionaire")1 published the second draft of the new law on March 6th, 2017 ("Draft"). As announced by the Commissioner, the new Draft was necessary in order to address the deficiencies of the existing Law on Personal Data Protection and in order to harmonize the law with EU legislation, particularly with the newly enacted General Data Protection Regulation.

​Amending the Labour law in July 2014 raised some arguable and sensitive issues regarding termination of the employment contract when employee's behaviour represents criminal act. In fact, it was the employer who decided if an employee's behaviour represent a criminal act. This is why the Constitutional Court found it important to define (i) if an employer competent and authorized to decide if certain behaviour is a criminal act and (ii) if termination on this ground is in breach of the presumption of innocence.

Karanović & Nikolić is pleased to announce that we, in cooperation with local lawyers, have been shortlisted by IFLR for "Deal of the Year" within the Project Finance category for our assistance in the SASA mine refinancing project in Macedonia.

Karanović & Nikolić employment team has assisted Shepherd and Wedderburn in the development of The European Employment Law Update for 2017. European Employment Law Update for 2017 provides an overview of the vital reforms being introduced to European employment law over the next year, including areas such as seconding employees, increased protections for whistleblowers, and legislation changes related to increased work-life balance. Key considerations related to traditional employment areas such as increases to the minimum wage and unfair dismissal are also assessed.

​Latest news reports are informing us that the European Energy Community (EC) went back on their threats of suspending Serbia's membership, after a series of fruitful negotiations between EC's representatives and the Serbian Ministry of Energy. The agreement which allowed for this development stipulates that Serbia has accepted the plan of action regarding the restructuring of Srbijagas, at the same time complying with the requirements of the Third Energy Package. On 11 October, the Serbian government issued a decree that is binding all gas companies to act according to the agreement in question, while also outlining that the Ministry of Energy will regularly be reporting on related activities to the Community as part of a fully transparent process of cooperation.

​Karanović & Nikolić is pleased and proud to announce the promotion of a new generation of Senior Partners - Milan Lazić, Marjan Poljak and Darko Jovanović.

The European Commission has opened an in-depth merger investigation into the planned acquisition of Cemex Croatia by Duna-Drava Cement ('DDC'). Registered in Hungary, DDC is jointly controlled by German construction material producers HeidelbergCement and Schwenk. DDC inter alia operates a cement plant in Kakanj, Bosnia and Herzegovina. Cemex Croatia, an arm of the international cement heavyweight Cemex, controls three cement plants in the Croatian coastal city of Split.

The Serbian Minister of Finance issued the Rulebook on the Manner and Procedure of Delivering and the Content of the Tax Administration's Notification on Commencement or Finalization of Tax Audit ("Rulebook").

Montenegrin Parliament adopted the amendments to the Corporate Income Tax Law ("CIT Law") and Value Added Tax Law ("VAT Law"). Below is a brief description of the main amendments.

We are pleased to announce that Karanović & Nikolić team, together with Freshfields Bruckhaus Deringer, has supported UniCredit S.p.A. (Italy) in a recently closed take-over of the CEE business of UniCredit Bank Austria AG including shareholdings in 13 banks in Southern Europe and CEE as well as a relevant loan portfolio. Freshfields and Fellner Wratzfeld & Partner were the lead advisors on the transaction, while Karanović & Nikolić acted as the local advisor in Serbia and (through its corresponding law offices) in Croatia and Slovenia.

Recent media reports have informed us that the European Commission has issued an official charge sheet accusing Google of an abuse of dominance concerning its Android mobile operating system and contracts with smartphone producers and telecom operators. The European Commission considers Google dominant in the markets for general internet search services, licensable smart mobile operating systems and app stores for the Android mobile operating system. This is not the first time the Commission has been looking into Google's operations through an antitrust lens. The company has already faced heavy scrutiny concerning its search engine and treatment of competing shopping services and advertisements.

This article is originaly published in IBA International Real Estate News. During 2015, one major acquisition of real estate property occurred in the Serbian real estate market. What happened was that a major international bank purchased over 8,000 sqm of space in two office buildings located in the Serbian capital, Belgrade. In fact, the buyer only acquired the parts of the buildings, while it already owned a significant part of this property. The purpose of the purchase was to localise the bank's management in Serbia in one place. The deal was completed by the end of 2015 after long negotiations with the sellers – four companies that are incorporated in Serbia with the sound of champagne popping. However, just as the party was warming up and the bank's employees were about to settle down in the newly purchased premises, an unprecedented event occurred – the kind of an event which may have long-term consequences for real estate acquisitions throughout the Balkans region.

To the untrained eye, technology and the judiciary sector may seem rather far apart. IT is ever changing and dynamic, while courts are by design deliberate and slow. However, even the most resistant institutions are not immune to change; Serbian courts now appear to be further steps towards incorporating new technology for the ultimate goal of greater efficiency.

Karanović & Nikolić provided complete legal support to Affidea, a largest European medical service provider with respect to opening the first foreign hospital located in Belgrade. Our services consisted of extensive regulatory and corporate advice related to formation and start of operations of Affidea`s first hospital in Serbia.

After a remarkable year in both merger control and antitrust, the Serbian Competition Commission (the "Commission") is already starting to look ahead. The announcements made on the Commission's website during November and December of this year suggest that the Commission's focus in the year ahead will be directed at several industries in particular.

The Serbian Parliament has recently adopted amendments to the Criminal Code. The amendments include a significant overhaul of the legal framework for white collar crimes, touching upon the rules relevant for antitrust enforcement as well.

On 23 November 2016, the Serbian Parliament adopted amendments to the Criminal Code. Changes made include, among other, criminal offence of tax avoidance. Prosecution of tax avoidance was a matter of much controversy in the recent practice, and some of the changes made by the latest amendments are aimed to address these controversies. Though generally welcome, the scope of changes made are unlikely to bring significant improvements in the prosecution of tax avoidance. 

Karanović & Nikolić is pleased to announce that Rastko Petaković has been elected as Managing Partner. Rastko takes over the firm's leading position from Dejan Nikolić who served as Managing Partner until 2016. Rastko's dedication and energy was evident from the beginning of his career when he joined the firm as a legal trainee back in 2005. He led in the development of the firm's corporate, competition and M&A practices and acted on major M&A deals and ground breaking antitrust cases. In 2009 and 2010 he has acted as lead counsel in two of the largest antitrust cases to date in the SEE region. More recently, in 2014 and 2015 he acted as lead local counsel in regional deals totalling EUR 4 billion. Rastko's career enabled him to emerge as a highly competent lawyer who, in addition to his expert knowledge of the law, brings innovative and modern ideas that contribute to Karanović & Nikolić being a market leader in the SEE region. His track record in expanding the firm's network across the region demonstrated his vision and leadership, and most importantly, the perseverance to deliver on the vision and goals he sets for his clients and the firm. In 2015 Rastko was selected as the winner of the 2015 European Emerging Leaders Awards by M&A Advisor. Commenting on his appointment, Rastko said: "I'm honoured and privileged to be elected as Managing Partner. These are exciting times for the firm and our clients and we plan to work with them closely to help them achieve their goals and use every opportunity that this region offers. We thank Dejan for his strong leadership and vision." Dejan Nikolić comments: "Karanović & Nikolić recognises true virtue, and potential. Rastko not only embodies these qualities but also consistently employs both his excellent organisational skills and his admirable dedication to client care, helping us sustain our reputable status in the market. He has been a fantastic role model to our younger associates and has continuously proven his vast capabilities. We are all excited to see where his fresh and bold energy and leadership will take us." For more information please contact Alexandra Yoshida, [email protected], on +381 11 3094 200.

Advertising in the Federation of Bosnia & Hercegovina is regulated through a series of laws and regulations (example: Law on Consumer Protection of BiH, Law on Media, Law on Medical Products etc.), but with the new Law on Prohibited Advertising (Official Gazette of FBiH 101 / 16, the "Law"), which entered into force on 31.12.2016, the control of illegal advertising is regulated, with regards to the relations between merchants, which in the Law on Consumer Protection of BiH remained open. By doing so, the protection of merchants from illegal advertising and the process of protection are regulated, additionally, the forms of prohibited advertising are established, which are misleading and prohibited comparative advertising.

The Law on Financial Operations On the 30th of December 2016, the application of the Law on Financial Operations (Law) will commence in the Federation of Bosnia and Herzegovina. The Law is intended to ensure the proper functioning of the internal market by introducing adequate and systematic risk management measures and solvency measures, as well as to promote the competitiveness of local commercial enterprises by legislating a culture of prompt payment.  

Near the tail-end of 2016, the Serbian Competition Commission initiated an investigation for an alleged competition infringement that took place in June of the same year. The infringement involved a failure to notify a merger for mandatory clearance. The transaction in question concerned an unreported acquisition of sole control on the IT market.

At the end of 2016 the Serbian Parliament adopted changes to Serbian tax laws, introducing a number of important changes in the area of VAT, excise duties and general tax procedures. Amendments to the laws governing these areas were adopted at the very end of 2016 – on the 28th of December 2016.

The Competition Commission found that the company EPS Distribucija, the only operator of the electricity distribution network in Serbia, abused its dominant position in the market of electricity distribution in Serbia. The abuse consists of applying dissimilar conditions to equivalent transactions with trading parties, whereby some of those trading parties have been placed at a competitive disadvantage in comparison to their competitors. The abuse was the result of, amongst other things, a non-transparent business policy of EPS Distribucija.

Recent news  bring us an update from the Energy Community (EC), whose latest report has outlined that Serbia has not resolved the key issue of non-compliance with the aquis – something that presents a continuous violation of obligations under the EC Treaty – by not completing the separation of Srbijagas and Yugorosgaz activities in accordance with the "Second Energy Package". The EC's report specifies that, in the reporting period, Serbia has in a way cancelled much of its prior efforts when it comes to the separation of these activities, effectively slowing down the process of harmonising secondary legislation. Furthermore, the EC has also requested Serbia to complete the transformation of its Electric Power Company into a joint-stock company by 1 July 2016 – another deadline that has been breached.