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With the judgement case no. C-555/21 the Court of Justice of the European Union (“CJEU”) answered a preliminary question addressed to it by the Austrian Supreme Court regarding the interpretation of Directive 2014/17 on credit agreements for consumers relating to residential immovable property.The Austrian Supreme Court addressed the request for the preliminary ruling in relation to ongoing court proceedings in which the local association for the protection of the interests of consumers (Ger. Verein für Konsumenteninformation) challenged the general condition used by UniCredit Bank Austria in its credit agreements secured by mortgages. With the disputed general term, the bank, in the case of early repayment of a credit agreement, proportionally reduces only the interest and costs of the credit which are linked to the duration of the credit and does not take into account the proportional reduction for those costs that do not depend on the duration of the agreement (e.g. credit processing costs).With respect to the addressed question whether Directive 2014/17 precludes the national legislation, which grants a consumer with a right to reduce the total cost of credit in the event of early repayment, namely reduction of interests and costs which depend on the duration of the agreement, the CJEU answered that the directive does not preclude such legislation. In case of early repayment, the consumer can therefore only request a reduction of interest and costs which depend on the duration of the agreement.The CJEU emphasized that the purpose of the right to reduce the total costs of the credit is to adjust the credit agreement according to the circumstances of an early repayment. This right, therefore, does not include the right to reduce the costs (i) that the consumer bears regardless of the duration of the agreement and (ii) of services that have already been completed at the time of the early repayment. Furthermore, the CJEU also emphasized that national courts must ensure that the costs borne by the consumer in the event of early repayment do not objectively represent a remuneration of the creditor for temporary use of the capital or payment for services which have not yet been performed.

With the judgment case no. C-555/21 the Court of Justice of the European Union (“CJEU”) answered a preliminary question addressed to it by the Austrian Supreme Court regarding the interpretation of Directive 2014/17 on credit agreements for consumers relating to residential immovable property.

Early repayment of a consumer mortgage loan and reduction of costs that do not depend on the duration of the credit agreement

Industries

Since the beginning of the war in Ukraine, 219,153 Russian citizens have immigrated to Serbia. In contrast, over the past year, more than four thousand Russian entrepreneurs and companies have been established in Serbia. In response to the newly emerging market circumstances, the Government of Serbia adopted the Decree on the criteria for awarding incentives to employers who employ foreign nationals in mid-June of last year. Under the conditions defined by the Regulation, for each employed foreigner, employers can obtain subsidies of 70% of the paid salary tax and 100% of the paid contributions for the Republic Fund for Pension and Disability Insurance.One of the primary criteria for awarding incentives is that the employer and the foreign citizen conclude an employment contract for an indefinite period, with a monthly salary of at least 300,000 dinars. However, this type of engagement is not following the Labor Law, which stipulates that an employer with a foreign citizen can only establish an employment relationship for a certain period for the validity of the work permit issued to the foreigner.Since the provisions of the Labor Law have a more vital legal force than the Regulation, the question of the practical scope of the Regulation itself is justified. The creator of the Regulation did not think to read the provisions of the Labor Law beforehand or at least consult with the relevant Ministry before the Regulation was adopted.In light of such circumstances, the Ministry of Labor issued an official opinion on this topic at the request of an employer who hired Russian citizens in February of this year. In its opinion, the Ministry notes that a foreigner can establish a working relationship for a fixed period but that a public discussion is underway on the amendments to the Law on the Employment of Foreigners, which will stipulate that the employer can conclude an employment contract with a foreigner for an indefinite period.Only after the entry into force of the changes mentioned above will employers be able to legally employ foreigners indefinitely and apply for the award of incentives provided for in the Regulation. In the meantime, may the creator of the Regulation think of passing a new regulation?This text is for informational purposes only and should not be considered legal advice. Should you require any additional information, feel free to contact us.Contact:Kristina Pavlović, Associate <a href="mailto:kristina.pavlovic@sog.rs">kristina.pavlovic@sog.rs</a>

Since the beginning of the war in Ukraine, 219,153 Russian citizens have immigrated to Serbia. In contrast, over the past year, more than four thousand Russian entrepreneurs and companies have been established in Serbia. In response to the newly emerging market circumstances, the Government of Serbia adopted the Decree on the criteria for awarding incentives to employers who employ foreign nationals in mid-June of last year.

Employment of Foreign Nationals – Current Conflict of Regulations

Sheikh Rashid Bin Ahmed Al Maktoum, a member of Dubai’s ruling family, announced that he would offer cooperation opportunities for companies in Central and South Eastern Europe to participate in the national development program called ‘Operation 300 billion’.In March 2021, the UAE launched its 10-year comprehensive strategy to make industry the engine of a sustainable national economy. With this strategy, the Emirates plan to position itself as a global industrial hub by 2031 and to reach 300 billion dirhams (81.7 billion USD) of the gross national product from the current 133 billion dirhams (36.2 billion USD).The SOG Law Firm Will Screen Companies in Country and RegionAs the owner of RAM Investment Ltd. – DXB Holding, Sheikh Rashid Bin Ahmed Al Maktoum hired an international legal consortium of three leading law firms to screen and advise potential companies. That activity will be performed in Serbia and the region by the SOG Law Firm, which in recent years has worked on the most important investment projects in the Balkans, led by the founder Milan Samardžić. Among other things, SOG advised Etihad Airways on a strategic partnership with the Government of Serbia worth 200 million dollars and acquiring a 49% stake in the national airline (Air Serbia).In addition to SOG, two Hungarian law firms are part of the consortium. The law office of Dr. Boros Árpád András, which specializes in the energy, financial, and investment sectors of the Central and Eastern Europe region – leads the Consortium, and CERHA HEMPEL, whose executive partner is Dr. Polauf Tamás – known for its consulting solutions and decades of experience in international commercial transactions and corporate matters.Which Companies Can Apply?The newly established consortium will analyze the applications of innovative companies, primarily in industrial development, IT, transport, pharmaceutical and healthcare industries, which have the power to contribute to a modern, energy-efficient, and sustainable economy in the Emirate of Dubai.The UAE’s ‘Operation 300 Billion’ industrial strategy is open to various sectors. The focus is on information technology, artificial intelligence, and scientific and high-tech sector projects that include biotechnology, microbiology, renewable energy sources, meteorology, and water management. In addition, the strategy provides cooperation with companies from the petrochemical, metallurgical, and space industries. Then the rubber and plastic industries, machinery and equipment, electronic devices, pharmacy, and medical technology.For companies from the ex Yugoslavia region, the program offers exceptional business opportunities to benefit directly from the UAE’s industrial and technological expansion. Technology sector is experiencing significant growth and is one of the most promising. Our market is finally gaining attention on a regional and global scale and will potentially become dominant. Currently, Serbia is already a regional hub in innovation, especially regarding projects based on artificial intelligence. All these factors have contributed to the fact that the UAE has invited innovative companies from the domestic area.One of the examples of companies that have already managed to join the project from Dubai strategically is the leading artificial intelligence ecosystem/studio – <a href="https://www.merantix.com/">Studio Merantix AG</a>. The venture involves conceptualizing <a href="https://www.zawya.com/en/press-release/companies-news/hh-sheikh-rashid-bin-ahmed-al-maktoums-ram-investment-announces-ai-city-dubai-vision-vv3oi8dc">AI City</a>, a unique zone in Dubai that will implement pioneering artificial intelligence solutions. This project will become a global AI hub driven by a smart city infrastructure that connects research institutions and talents with leading domestic and international startups, corporations, and investors. It will house innovation labs, research institutes, and related companies – all together demonstrating the positive impact of artificial intelligence. Another company included in the work at the beginning of the year is the Hungarian <a href="https://genevation.eu/">Genevation Aircraft Kft</a>. This innovative company has started a unique project in the field of drone development.Participation in the UAE industrial strategy ‘Operation 300 billion’ not only provides companies with the opportunity to realize potential earnings and further establish themselves in the provision of services, but they can directly participate in a leading, innovative project that intends to push the boundaries of technology on a global scale.<blockquote>Companies interested in applying for the Dubai economic development program can inquire to office@sog.rs.</blockquote>

Sheikh Rashid Bin Ahmed Al Maktoum, a member of Dubai’s ruling family, announced that he would offer cooperation opportunities for companies in Central and South Eastern Europe to participate in the national development program called ‘Operation 300 billion’. In March 2021, the UAE launched its 10-year comprehensive strategy to make industry the engine of a sustainable national economy. With this strategy, the Emirates plan to position itself as a global industrial hub by 2031 and to reach 300 billion dirhams (81.7 billion USD) of the gross national product from the current 133 billion dirhams (36.2 billion USD).

Call for Innovative Companies to Participate in the Dubai Economic Development Program

Energy

Ministry of Mining and Energy published on 21st January, long awaited draft of the Amendments to the Renewable Energy Sources Act (RESA) with purpose to push forward further investments in RES sector by creating better legal framework for development of new projects.Initial adoption of the RESA was welcomed by the investors with high enthusiasm, skyrocketing the number of requests for securing connection to the transmission grid to 17,000 MW of new capacities (in comparison total installed capacity of Republic of Serbia at the moment is 8,000 MW) which led in the end to the suspension of all new procedures by EMS.The main argument for this was that number of requests has led to the endangerment of the stability of transmission system of Republic of Serbia, as well position of guarantee producer EPS due to several very controversial solutions of the RESA including obligation of the EPS to bear the balance responsibility in full for all renewable energy producers, and right to priority access to transmission/distribution system for each renewable energy producers.This initiated the discussion between key stakeholders Ministry of Mining and Energy, EMS and EPS which led to the draft of the proposed amendments.The public debate will be opened until 9th February, and all interested parties can provide their suggestions to the Ministry of Mining and Energy on the e-mail <a href="mailto:oie@mre.gov.rs">oie@mre.gov.rs</a>. Most important changes to the RESA include:<ol start="1"><li>EPS (guaranteed supplier) will bear balance responsibility only for the RES power plants with incentives</li></ol>The biggest change introduced by the Amendments to RESA is that EPS will bear balancing responsibility only for the power plants which receives incentives in form of market premium and feed in tariffs. Other producers will have to regulated their balance responsibility in accordance with the Energy Act and operating rules of electricity market.Market Premium users will pay for balancing services to EPS a percentage of the offered price per produced MWh.<ol start="2"><li>Organization of Auctions</li></ol>Ministry of Energy will be now in charge with determining the maximum price for the auctions and feed in tariffs per MWh instead of Energy Agency of the Republic of Serbia. The idea is to centralize the auctions process in one authority instead of two for the sake of efficiency.<ol start="3"><li>Priority Access to Transmission/Distribution/Closed Distribution System compiling a ranking list and filling the quota</li></ol>Priority access to the transmission, distribution and closed distribution system is now limited only for small power plants up to 400 kW for the beginning, and from 1st January 2026 up to 200 kW. This was implemented to harmonize RESA with EU standards for priority access.<ol start="4"><li>Request for additional capacities</li></ol>Most controversial provision of the proposed amendments act is right of the EMS to request from the developers to secure additional capacities on the territory of Republic of Serbia capable to provide system services of regulation of frequencies and power exchange, as precondition for connection of power plant to the transmission system. EMS can request additional capacities in the event if it estimates that connection of the new RES power plant could endanger functioning of electro-energy system of Republic of Serbia, and includes conventional sources, and batteries.<ol start="5"><li>Limitation of prosumers to 10MW of capacity</li></ol>Considering the number of transmission connection requests, the Ministry of Energy and Mining has decided to propose limiting prosumers to the distribution grid exclusively, hence stipulating that maximum installed power of prosumer is 10MW.This text is for informational purposes only and should not be considered legal advice. Should you require any additional information, feel free to contact us.Contact:Nemanja Providžalo, Senior Associate <a href="mailto:milan.samardzic@sog.rs">nemanja.providzalo@sog.rs</a>

Ministry of Mining and Energy published on 21st January, long awaited draft of the Amendments to the Renewable Energy Sources Act (RESA) with purpose to push forward further investments in RES sector by creating better legal framework for development of new projects.
Initial adoption of the RESA was welcomed by the investors with high enthusiasm, skyrocketing the number of requests for securing connection to the transmission grid to 17,000 MW of new capacities (in comparison total installed capacity of Republic of Serbia at the moment is 8,000 MW) which led in the end to the suspension of all new procedures by EMS.

A New Hope for Renewables

The European Union has set ambitious targets for the development of renewable energy sources, aiming to reach 32% of total energy consumption by 2030. Furthermore, energy from from renewable sources can reduce the EU’s demand for fossil fuels and thanks to their low operational costs, more renewables in the EU’s energy system can lower energy prices. To achieve this goal, a significant increase in the deployment of renewable energy projects is necessary. However, the permit-granting process for these projects can be lengthy and complex, often involving multiple agencies and levels of government.To address this issue, the European Council has adopted a regulation establishing a temporary framework to accelerate the permit-granting process for renewable energy projects. The regulation applies to all EU member states and covers a wide range of renewable energy technologies, including solar, wind, geothermal, and hydropower.Maximum deadlinesUnder the temporary framework established by the Council Regulation, member states are required to ensure that the permit granting process for renewable energy projects is completed within certain time limits. These maximum time limits are as follows:<ul><li>a deadline of one monthfor the installation of heat pumps below 50MW and three months in case of ground source heat pumps;</li><li>a deadline of three months permit-granting process for the installation of solar energy equipment and co-located energy storage assets,</li><li>a deadline of six monthsfor the permit-granting process for repowering projects including all relevant environmental assessments. Where repowering results in an increase of up to 15 % in the capacity of the power plant, grid connections will be permitted within three months.</li></ul>Presumption of overriding public interestThe planning, construction and operation of plants and installations for the production of energy from renewable sources, and their connection to the grid, the related grid itself and storage assets is presumed to be in the overriding public interest and serving public health and safety when balancing legal interests in the individual case.Projects which are recognised as being of overriding public interest are given priority when balancing legal interests in the individual case during the planning and permit-granting process, the construction and operation of plants and installations for the production of energy from renewable sources and the related grid infrastructure development are given priority when balancing legal interests in the individual case.The regulation is valid for a period of 18 months from its entry into force.Overall, the regulation represent  a positive step towards meeting the EU’s renewable energy targets and supporting the transition to a low-carbon economy. It will help to remove barriers to the development of renewable energy projects, encourage the growth of this important sector and hopfully soone have an impact on the market energy prices.

The European Union has set ambitious targets for the development of renewable energy sources, aiming to reach 32% of total energy consumption by 2030. Furthermore, energy from renewable sources can reduce the EU’s demand for fossil fuels and thanks to their low operational costs, more renewables in the EU’s energy system can lower energy prices. To achieve this goal, a significant increase in the deployment of renewable energy projects is necessary.

Council Regulation (EU) 2022/2577 – introducing a new temporary emergency regulation to accelerate the permit-granting process and the deployment of renewable energy projects

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Femil Čurt is a founder and Managing Partner at Femil Curt Law Office in Sarajevo, Bosnia and Herzegovina.In the course of his professional career, Femil worked for a major Austrian financial institution and practiced for a number of years with prominent international law firms before he established his own law firm.Femil has outstanding experience in the areas of banking and finance, corporate and M&amp;A, infrastructure projects, and concessions. He has been involved in numerous large-scale projects, including working with a large American consulting company on the implementation project of the largest on-lending program of the US Government in Bosnia and Herzegovina.Femil is fluent in Bosnian and English language.

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