Vinge Dude Diligence – for improved gender equality

COP26 - a step in the right direction to achieve the Paris Agreement goals

On 13 November 2021, the two-week international climate summit COP26, held in Glasgow, UK, was concluded after leaders from over 190 countries agreed on a new deal, the so-called Climate Pact in Glasgow. The aim of COP26 was for leaders from around the world to agree on how to step up global action to tackle the climate crisis. The agreement, which will set the global average temperature increase at between 1.8 and 2.4 degrees Celsius, is a step towards achieving the Paris Agreement's (COP21) more ambitious target of a maximum increase of 1.5 degrees.

The EU Court of Justice dismisses Belgium’s request in Opinion 1/20, but points out that the dispute settlement mechanism of ECT is not applicable to ‘intra-EU disputes’

The Energy Charter Treaty (ECT) is under renegotiation. Its Article 26, which provides a dispute settlement mechanism, has however not been announced as being subject to such renegotiations. On 2 December 2020, Belgium submitted a request to the EU Court of Justice (CJEU) for an opinion on whether the dispute settlement mechanism of the draft ECT, assuming it remains unchanged, could be interpreted as allowing its application intra-European Union, i.e. between an EU Member State and an investor who is a national of another Member State, and whether this would be compatible with the EU Treaties, in particular Article 19 TEU on the role of the CJEU and Article 344 TFEU on the autonomy of EU law.

New law on electronic communication

On 3 June 2022, the new Electronic Communications Act (the “New ECA”) entered into force. On the same day, the new Electronic Communications Ordinance, as well as several regulations from the Swedish Post and Telecom Authority, entered into force. On 1 August, regulations from the Swedish Post and Telecom Authority regarding security of networks and services are expected to enter into force.

The REPowerEU Plan – The EU Commission’s response to the energy market disruptions

On 18 May 2022, the EU Commission presented the REPowerEU Plan in response to the current world-wide energy market disruptions which have been caused by Russia’s invasion of Ukraine.

Vinge wins M&A legal advisor of the year award

Mergermarket has awarded Vinge the Swedish Legal M&A Advisor of 2021.

Sanctions update 16 March 2022

Further to our previous sanctions updates we herewith provide a further update of recent sanctions developments:

Sanctions update including counter measures by Russia

Further to our previous sanctions updates we herewith provide a further update of recent sanctions developments:

Update on the EU, UK and US sanctions against Russia and Belarus

In the past few days EU, UK and US have issued sanctions against Russia and Belarus in response to Russia’s invasion of Ukraine. Of particular importance is yesterday’s action by the US to sanction the two largest Russian banks, VTB Bank and Sberbank. UK has also sanctioned VTB Bank and it is not unlikely that EU will follow suit within short. Business dealings involving these banks, as well as all other sanctioned entities, will be severely affected. The sanctions can be summarised as follows:

Nuclear power and natural gas to be included in climate taxonomy – new proposal by the EU Commission

On 31 December 2021, the EU Commission submitted a proposal to an expert group within the Commission as well as the member states regarding the inclusion of nuclear power and natural gas in the climate taxonomy, i.e. the EU classification system for environmentally sustainable operations.

The prohibition imposed by EU law on complying with secondary sanctions laid down by the United States against Iran may be relied on in civil proceedings

On Tuesday 21 December, the EU Court of Justice delivered its long-awaited judgment in the Bank Melli Iran case (Case C-124/20) on the interpretation of the EU Blocking Statute regarding compliance with third country sanctions. According to the Court, the prohibition imposed by EU law on complying with secondary sanctions laid down by the United States against Iran may be relied on in civil proceedings. Following the Court’s judgment, anyone seeking to terminate a contract with a person or business subject to US sanctions must thoroughly consider if the termination is motivated by other reasons than the existing sanctions and reflect on whether to apply to the Commission for a derogation from the Blocking Statute.

The EU Commission proposes a new tool to counter the use of economic coercion by third countries

The European Commission has proposed a new regulation that will provide it with tools to counteract economic coercion from third countries with measures such as tariffs and imports restrictions.

Sweden proposes a new law on investment screening which will have significant implications for transactions

Contrary to the situation in many other countries, there are currently only limited possibilities to regulate or prevent foreign direct investments in Sweden that could entail risks to Swedish security interests. Existing regulatory frameworks, such as the Protective Security Act (Sw. Säkerhetsskyddslagen), are limited to certain areas, to certain activities and to specific situations. The final report of the Inquiry of foreign direct investments (Sw. Granskning av utländska direktinvesteringar), published on 1 November 2021, puts forward a proposal for new legislation to address this gap.

Arbitration proceedings between a Member State and an investor from another Member State further curtailed – the judgment of the EU Court of Justice in PL Holdings

Following the much debated judgment by the CJEU in Achmea, arbitration clauses in bilateral investment treaties between Member States under which an investor in one of those Member States may bring proceedings against the other Member State are considered incompatible with EU law. However, the judgment in Achmea seemed to leave it open whether an arbitration agreement between a Member State and an investor from another Member State not based on such a clause would be considered acceptable by the CJEU. Yesterday’s ruling by the Court in the Swedish case PL Holdings (Case C-109/20) dealt with one aspect of this question, resulting in further limits to investment arbitration in the EU.

New statute prohibits unfair terms and conditions and practices in conjunction with the purchase of agricultural and food products

The so-called UTP Act prohibits buyers from using certain terms and conditions and practices against suppliers of agricultural and food products. The Swedish Competition Authority exercises supervision and can, among other things, carry out unannounced inspections and order individual to attend formal interviews. In conjunction with violations, sanctions such as injunctions subject to a default fine or a sanction fee of up to one per cent of the buyer’s annual turnover can be imposed. The UTP Act will enter into force on 1 November 2021 and will also be applicable to contracts which are entered into prior to this date.

Vinge employs additional antitrust economists to further strengthen its practice

We welcome Adam Löfquist and Carl Widstrand to our EU, Competition & Regulatory practice group.