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How Russia's exit EC will affects foreign business in Russia?

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How will Russia's exit from Council of Europe affect foreign business?

russia leaves council of europe

Exiting CE is a serious step. The consequences are huge. For rightful assessing the consequences you should to realize what the Council of Europe founded for.

Council of Europe is an international institute which was founded to protect countries entered the Council from misdoing or some mistakes of management. There are several sub institutes which serves this mission (European court of human rights and others). If you live in a country of CE you always have a right to claim your country for violating your rights written in the European Convention. Council of Europe has big affect on the internal politics. Many laws in Russia and not only in Russia have changed because of CE. Council's members always meet to discuss most important issues and take affects to the countries which don't follow common comprehension of human rights. Be the way participating in CE means to not only protects some real cases but building law system which works on people's benefit. If to be short Council of Europe designed to protect human rights as international institute in Europe. Foreign business feels itself more comfortable in environment where it used to work. If business sees safety it can move in. Being the member of CE is safe guarantee. What will be with foreign business if it won't feel in safe? This is more legal and economic question than political ones.

Why it is matter to cooperate with the world?

When political and business representatives meet at conferences and meetings to discuss some points they can achieve more progress working together. There is no big business without global communication nowadays. To evolve business should take some notes how effective it works and what the best decision in the world exists. Business should be always in touch not only with clients but with competitors and partners all over the world. Council of Europe the institute which gets this opportunity as many others international institutes.

What will get changed in Russia after leaving the Council of Europe?

It is not necessary the legislation be changed in this case. But if it get changed that means the country has deep political decision and wouldn't be back soon. If Russia wills full exit CE it would change whole legislative system and may leave WTO as well. This step would be comprehensive. In this case to get back would be much more complicated issue. We hope it will not happen.

What to do?

In any case there should be no panic. All these procedures and steps will take long time and it's unlikely Russia will completely withdraw from international business, economic and political process. All the business can do is to keep doing its business and take care of next actions. It should assess every next move and avoid loan traps and consequences regarding to loan. Every signing paper should be worked out very carefully and thoroughly.

Our law firm would be grateful for cooperation and discussing such issues. Leave us a message by mail, WhatsApp or other way or call us and feel free ask your questions.

21.03.2022

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