Insight

Russian Senate as a highly empowered stakeholder

Russian Senate as a highly empowered stakeholder

Evgeny Roshkov

Evgeny Roshkov

November 16, 2020 07:35 AM

Russian Senate as a highly empowered stakeholder

A new direction for corporate GR

On July 1, the postponed nationwide vote for amendments to the Russian Constitution will be held. The amendments, approved by the Parliament and regional legislative bodies and signed by the President into law in March, will take effect only if approved by the nationwide vote (which is largely seen as a formality).

The amendments introduce major changes in the power structuring system in Russia, important in the context of upcoming Parliamentary elections in 2021 and Presidential elections in 2024.

The most significant and high-profile of the forthcoming changes is the so-called "zeroing out" of Putin's presidential terms, allowing him to run for the Presidency for two additional terms.

However, the so-called "2024 Dilemma" - whether Putin will run for the Presidency again or moves to another position in the power system while retaining control over key decision-making – will not be finally resolved by these amendments.

On the one hand, the amended Constitution clears the way for Putin to run for re-election in 2024 and potentially again in 2030. On the other, taking into account the age factor and other reasons, alternative scenarios exist as well. According to these, Putin could move to another position in the power system while retaining control over key decision-making.

The probability of these alternative scenarios could be increased by a major or enduring crisis, which may force Putin to look to distance himself from operational decision-making and the responsibility for its impact, while retaining control from a less exposed position. Possible alternative roles for Putin could include Chairmanships in the Federation Council, State Council or Security Council.

The most immediate goal of "zeroing out" Putin's terms, however, could be to put an end to his image of a "lame duck" President, which has gradually taken hold in the establishment and risked destabilizing the entire system of governance.

Any of these "alternative scenarios" would trigger a significant re-distribution of power and influence between the key governing institutions – the Presidential Administration, the Government, two Chambers of the Parliament (State Duma and the Federation Council), as well as the State Council and Security Council.

Meanwhile, the strengthening of some of these institutions – most notably the Federation Council (upper Chamber of the Parliament) is directly indicated from the constitutional amendments and is not conditional on a potential move by Putin to the office of its Chairman. The most immediate trend, which could be implemented before 2024, is the transition of Putin's inner circle to the Federation Council, enabling it to significantly increase its status and role in decision-making.

For professionals interacting with the Government structure, these changes could be game-changing, requiring a major reorganisation of the model of interaction with public authorities established in Russia since the 2000s. While the current model focuses on working with the executive branch, it would soon become necessary to concentrate more resource to work with other (currently viewed as peripheral) institutions (such as the Federation Council and the State Duma).

This memo therefore focuses on the potential impact of this "alternative scenario" on corporate government relations. From the above mentioned options, we focus on Putin's potential transition to the office of the Chairman of the Federation Council, a scenario that would require the most radical re-formatting of corporate GR. At the same time, a large part of our conclusions and recommendations would remain relevant even in the case of other scenarios, given an expected growth of the Federation Council's influence of the "post-amendments" political system.

Please click here for the full memo


Related Articles

Trending Top Five: Critical Corporate Components for 2022


by Justin Smulison

It’s no longer “business as usual” for most of Corporate America. With a growing list of challenges facing the legal and financial health of many companies, we talked to several major General Counsel about the biggest areas in which businesses should remain vigilant.

Corporate Advice From General Counsel

A Message From Best Lawyers Regarding Ukraine and Russia Listings


by Best Lawyers

Best Lawyers is pausing all research efforts in Ukraine and Russia for 2023.

Ukraine and Russian Research Update

All Doped Up


by Howard Rapke

Keeping elite international sporting events free of banned substances is an endless game of cat and mouse. Here’s an overview of the legal efforts set up to do, in theory, exactly that.

Legal Efforts Against Drugs at Olympics

Russian Rubles are Going Digital


by Rebecca Blackwell

Russia is moving toward the ever-expanding trend of digital currency.

Russian Rubles are Going Digital

Announcing the 2022 Best Lawyers™ in Russia


by Best Lawyers

The results include an elite field of top lawyers and firms.

Announcing the 2022 Best Lawyers™ in Russia

From Russia, With Law


by Best Lawyers

The bite of U.S. sanctions aside, Cleary Gottlieb partner Yulia Solomakhina sees great promise for commerce and the law as Russia increasingly embraces markets and technology.

An Interview With Cleary Gottlieb

How Russia's Global Policy Is Impacting Mergers and Acquisitions


by Best Lawyers

Alexei Zakharko and Mathieu Fabre-Magnan disscuss how they are preparing for emerging trends in the next couple of years.

An Interview With Dentons Russia

How Dentons Russia Dominates the Global Market


by Best Lawyers

Florian Schneider of 2019 "Law Firm of the Year" winner Dentons Russia discusses his career accomplishments.

Dentons "Law Firm of the Year" Interview

In the News: Washington, D.C.


by Compiled by Nicole Ortiz

A summary of newsworthy content from Washington D.C. lawyers and law firms.

Washington, D.C. In the News 2018

Q&A with Florian Schneider, Managing Partner of Dentons Russia


by Best Lawyers

A question and answer session with Florian Schneider, the managing partner of "Law Firm of the Year," Dentons Russia.

Florian Schneider – Dentons Russia

An Overview of Russia


by Anton Novoseltsev

The approval is only required if it is requested by a member of the supervisory board, a member of the executive board, a CEO, or a 1 percent shareholder.

Overview of Russia

Changes in the Legal Regulation of Foreign Investment in Russia


by Artem Zhavoronkov and Oleg Lovtsov

Introducing significant changes in the legal regulation of foreign investment in the Russian Federation.

Foreign Investment Russia

Russia's Evolving Legal Environment and the Next Economic Upswing


by Andrey Goltsblat

Russia's Legal Environment

Trending Articles

The Best Lawyers in Spain™ 2023


by Best Lawyers

Announcing Spain's recognized lawyers for 2023.

Flag of Spain

Announcing the 2023 The Best Lawyers in America Honorees


by Best Lawyers

Only the top 5.3% of all practicing lawyers in the U.S. were selected by their peers for inclusion in the 29th edition of The Best Lawyers in America®.

Gold strings and dots connecting to form US map

The Best Lawyers in Chile™ 2023


by Best Lawyers

The results include an elite field of top lawyers and firms in Chile.

White star in blue box beside white box with red box on bottom

Thirteen Years of Excellence


by Best Lawyers

For the 13th consecutive year, “Best Law Firms” has awarded the most elite and talented law firms across the country through a thorough and trusted data review process.

Red, white and blue pipes and writing on black background

The Best Lawyers in South Africa™ 2023


by Best Lawyers

Best Lawyers proudly announces lawyers recognized in South Africa for 2023.

South African flag

The 2023 Best Lawyers in Portugal™


by Best Lawyers

Announcing the elite group of lawyers recognized in Portugal for 2023.

Green and red Portuguese flag

Announcing The Best Lawyers in Peru™ 2023


by Best Lawyers

Honoring our awarded lawyers for 2023 in Peru.

Red and white stripes with green leaf symbol

The Best Lawyers in Spain™ 2022


by Best Lawyers

The results include an elite field of top lawyers and firms.

The Best Lawyers in Spain™ 2022

Best Lawyers: Ones to Watch in America for 2023


by Best Lawyers

The third edition of Best Lawyers: Ones to Watch in America™ highlights the legal talent of lawyers who have been in practice less than 10 years.

Three arrows made of lines and dots on blue background

Famous Songs Unprotected by Copyright Could Mean Royalties for Some


by Michael B. Fein

A guide to navigating copyright claims on famous songs.

Can I Sing "Happy Birthday" in Public?

IN PARTNERSHIP

Rewriting 𝙃𝙀𝙍𝙨𝙩𝙤𝙧𝙮 One Verdict at a Time


by Justin Smulison

Athea Trial Lawyers was formed only a year ago by several prestigious lawyers seeking justice for their clients, and together they are making history.

Six female lawyers sitting in office

Announcing the 2022 Best Lawyers® in the United States


by Best Lawyers

The results include an elite field of top lawyers listed in the 28th Edition of The Best Lawyers in America® and in the 2nd Edition of Best Lawyers: Ones to Watch in America for 2022.

2022 Best Lawyers Listings for United States

Announcing the 2023 The Best Lawyers in Canada Honorees


by Best Lawyers

The Best Lawyers in Canada™ is entering its 17th edition for 2023. We highlight the elite lawyers awarded this year.

Red map of Canada with white lines and dots

What the Courts Say About Recording in the Classroom


by Christina Henagen Peer and Peter Zawadski

Students and parents are increasingly asking to use audio devices to record what's being said in the classroom. But is it legal? A recent ruling offer gives the answer to a question confusing parents and administrators alike.

Is It Legal for Students to Record Teachers?

Strength in Numbers: When Partnering Up May Be Best in Whistleblower Litigation


by Justin Smulison

Whistleblower claims make headlines when they result in multimillion-dollar settlements. But the journey to the courtroom is characterized by complexity and requires time and resources. Bienert Katzman Littrell Williams partner and The Best Lawyers in America awardee Michael R. Williams discusses when and why partnerships between counsel will strengthen whistleblower litigation.

A Blue Person in the Middle of White People

Announcing the 2022 "Best Law Firms" Rankings


by Best Lawyers

The 2022 “Best Law Firms” publication includes all “Law Firm of the Year” recipients, national and metro Tier 1 ranked firms and editorial from thought leaders in the legal industry.

The 2022 Best Law Firms Awards