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Russia - France
Russian businesses remain under
the impression that taxes in France
are very high. However, current
reforms will in fact see the corporate
income tax rate decrease by 25%
by 2022, and the government is
implementing reforms to decrease
the social charges on salaries.
Ultimately, the combined social and
tax pressure in France is no greater
than in Germany or Italy. While
Russian businesses may face certain
challenges relating to the French cor-
porate culture and the local market,
we offer support to bridge the gap.
Africa is a developing region. Russian
businesses are investing seriously in
the sectors of infrastructure, finan-
cial institutions, energy and natural
resources. The legal system is not as
developed in some countries as in
others, and several provisions are not
tested by courts. Africa may be divided
into predominantly French-speaking
and Eng l i sh- speak i ng zones ;
however, it is not just the linguistic
barrier that separates them, but also
their legal systems, which have been
built on different legal traditions.
We have been active in Africa for over
30 years and have developed a deep
knowledge and understanding of its
legal systems. Our lawyers have
worked on important matters in
litigation, banking and finance,
capital markets, and corporate M&A,
in close alliance with local lawyers.
For clients considering investing in
Africa, we have created an online
portal providing guidance on the
many different legal, political and
economic environments across 29
African countries.
Oxana Balayan, what opportunities
are there for French companies in
Russia? How can they set themselves
up for success?
France remains a key European
partner for Russia. Hundreds of
French companies invest and operate
in Russia with 170,000 Russian
employees. Consumer goods, retail,
fashion, automotive, life sciences and
technology remain among the most
attractive sectors for French busi-
nesses.
The localization of production in
Russia provides solid long-term
opportunities for French companies.
In 2015, the Russian government
introduced a special investment
contract (SPIC) agreeing to support
foreign companies interested in
localizing production.
SPIC offers flexibility, considerable
tax and non-tax benefits. Russia
strongly encourages the innovation,
modernization and digitalization of
its economy. The formation and
expansion of a business in Russia
require legal advice to tackle foreign
investment regulation, corporate
structuring, tax incentives and other
important transnational legal issues.
French clients would benefit from
having a legal counsel with a strong
presence in Russia and France, as
does Hogan Lovells.
What strategy are you putting in place
for the development of Hogan Lovells
in France and Russia? What role do
Franco-Russian activities play in the
firm's development?
Xenia Legendre:
France and Russia
are longtime trade partners. The level
of investment by French companies in
Russia is spectacular. Unfortunately,
the same cannot be said of Russian
companies in France, so the main
goal would be to encourage Russian
businesses to look into the French
market, to help them navigate the
French legal system and to find suita-
ble business partners in France.
Hogan Lovells in Paris is uniquely
positioned to advise clients on both
EU and US sanctions.
Oxana Balayan:
To complete Xenia’s
remarks, we are extremely pleased
about her appointment as the new
Paris Office Managing Partner. Xenia
herself is a Russian national, further
easing the collaboration between our
two offices, Paris and Moscow. It is
easy to envision exploring new
opportunities together. As we continue
to work alongside the Franco-
Russian Chamber of Commerce, as
well as a number of other Franco-
Russian organizations and networ-
king platforms. We hope to offer
interesting business events to our
clients soon, both in Moscow and in
Paris.
Hogan Lovells (Paris) LLP
17, avenue Matignon - CS 30027 - 75378 Paris Cedex 08 - Tél. : +33 1 53 67 47 47
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