Commercial & Compliance

We have been regularly advising tobacco manufacturers on intellectual property and regulatory issues and commercial matters. We have represented our clients in courts, before regulatory authorities and have advised on major legislative proposals on tobacco regulation and the implementation of Tobacco Products Directive (TPD) in Lithuania in relation to plain packaging of tobacco products.
It is an innovative project which requires immense expertise combined with a thorough understanding of this particular industry sector. The legislative proposal for plain packaging of tobacco products and new TPD implementation into national laws is also recent in the whole of the EU. Our team were required to evaluate the proposed legislation in the light of the Constitution and other legislation, particularly the constitutional principle of the inviolability of property and freedom on economic activity.

The project was aimed at transposition of the EU electricity legislation to the legislation of Bosnia and Herzegovina. Another aim was its effective implementation towards the opening of the electricity market in this country. The work of the team covered preparation and consideration of proposals for all level electricity legislation, unbundling of the system operators, strengthening of the regulatory authority, organisation of the sector activities, cross-border exchanges, security of supply, international cooperation, and other relevant issues in the sector.
Our firm's senior associate acted as the EU appointed team leader. The team consisted of energy law and engineering experts from Belgium, BiH, Croatia, Hungary and Macedonia. Our firm’s experts prepared drafts and proposals for all level electricity legislation and coordinated them with the respective authorities and reported to the European Union along with the Energy Community Secretariat.
The project was the first and so far the only IPA project in the European Community which was both on-time and duly implemented.

Baltpool is a Lithuanian company licensed for the operation of power and natural gas exchange. Our team advised Baltpool on various legal matters related to Lithuanian power exchange, including licensing, other regulatory issues, contractual matters and relations with the transmission system operator. We acted as their main legal advisor for establishment of the trade platform for natural resources.
Legal assistance provided for Baltpool by our firm is unique in the Baltic region. Lithuania was the first country in the region to establish its own fully functioning power exchange, which stimulated liberalization of the electricity market and increased competition among electricity traders. Our country was also the first to launch the natural gas exchange, which should help to resolve price issues caused by the former monopoly of the natural gas supply.

LNG terminal is a strategic priority project included in the National Energy Strategy of Lithuania, Baltic Energy Market Interconnection Plan, and ENTSO-G Ten Year Network Development Plan. The LNG terminal will ensure alternative gas supply as required under EU laws; reduce Lithuanian dependence on imported gas from Russia and open access to the international gas markets. The LNG terminal is a complex project containing 3 major parts: a floating Storage Regasification Unit (FSRU), Port infrastructure and Pipeline.
Our team was selected as a legal counsel for comprehensive legal assistance in development of the LNG terminal project. Our assignments included wide-scaled consultations on international and EU energy regulation, drafting proposals for the related primary and secondary legislation in Lithuania, transposing best international regulatory practices, assistance in shaping the transaction itself, as well as consultations in project-related investment and commercial transaction.
Legal regulation of LNG terminal was vague, requiring deep creative insights in order to provide business-based and investments-safe advice. All regulatory schemes had to be created from zero taking into account that Lithuania had only Russia as a main gas supplier for many years. The implementation of the EU Third Energy Package proceeded and the energy sector itself was concentrated to withstand attempts by Gazprom to prevent market diversification. Assisted by our experts, LNG terminal project had to go through many Gazprom initiated disturbances both locally and on an EU level. However, all of these issues were successfully solved and the LNG terminal was launched at the end of 2014.

Lithuanian legal acts, following EU directives, provide that the production of heat and electricity in combined heat and power plants is treated as a public service obligation. Therefore, the respective quota of electricity should be bought from such plants. Vilniaus energija, a Veolia Group company, manages one such plant and each year receives its quota. However, the authority had set a too small quota for this company.
Vilniaus energija began a complex administrative regulatory dispute related to public service obligation fulfilment with the case being led by our experts. It was the first dispute related to a wrongly set quota in Lithuania. We shaped the strategy of the dispute, interpreted complex financial formulas and principles of energy production, as well as coordinated all involved parties. The case was finished successfully and the authority has increased the quota for our client.

The amendments of the Lithuanian District Heating Law enacted at the end of 2011 changed the definition and regulation of the heating units and provided new requirements for their supervisors. Both Veolia Group companies, Vilniaus energija and Litesko, have invested approximately 39 million euros into the construction and renovation of heating units. The investments were previously included in the regulated heat price, but the law's amendments cancelled any means for return guarantees.
Our firm has directly led and managed 10 regulatory administrative cases which were related to the protection of the investments of Veolia Group companies. We assisted in shaping the strategy for the client against institutions and in the courts, along with leading all court cases and investigations.