Termination of contracts with Russian and Belarusian companies. Legal advice
In the context of the Russia-Ukraine war and Western sanctions, more and more companies have questions concerning termination of contracts concluded with Russian and Belarusian companies, organisations, etc. Companies often seek such termination on their own initiative.
However, even in the context of war, the termination of a legal contractual relationship is not so simple. Improper termination of a contract may pose a risk of compensating direct and indirect damages. Therefore, each specific situation requires professional legal analysis and the assessment of the consequences, risks and other issues related to the termination of contracts. There are different grounds and conditions for terminating contracts. The right choice of termination procedures is crucial to prevent the negative consequences of such termination.
In response to the developing situation of legal uncertainty in the Lithuanian business environment and in order to provide some much-needed stability, law firm Ellex recommends that the following essential aspects should be considered, inter alia, before a decision is taken to terminate a specific contract:
- Which law applies to the termination of the contract?
- Are any sanctions applied in the context of termination of the contract (in the relevant economic area)?
- What conditions for terminating the contract are set forth in the contract itself or the applicable law:
- What are the termination procedures and grounds?
- When and how is it necessary to notify the counterparty about the termination of the contract?
- Will the termination of the contract affect the proper performance of other contracts?
As we can see from the queries we receive regarding termination of commercial contracts, quite often now there is a need to consult with foreign colleagues who have knowledge of a specific applicable law. Ellex is a member of several global networks of law firms (LexMundi, WSG, etc.) and can consult very effectively with its foreign colleagues on your business law issues.
For more information, please contact the lawyers below.