Providing legal support for companies engaged in foreign economic activity (FEA) is a core practice area at BRACE Law Firm. We advise Russian and international businesses on cross-border operations, from structuring foreign trade contracts to navigating commercial, currency, customs, and transnational disputes.

International trade represents one of the most heavily regulated business sectors. It demands sophisticated legal expertise to navigate the complexities of drafting cross-border agreements, managing import-export operations, ensuring currency control compliance (including mandatory revenue repatriation), and adhering to export controls.

Consequently, we handle matters where the cost of a compliance failure is exceptionally high: an improperly drafted arbitration clause renders a contract unenforceable; disruptions in supply chains without corresponding contractual adjustments shift financial losses onto the domestic party; executing settlements outside the currency control framework creates risks of administrative and, under certain circumstances, criminal liability; misclassifying goods under the Harmonized System (HS) can trigger a retroactive reassessment of customs duties for up to three years.

The practice integrates elite capabilities across private international law, customs and currency regulation, and cross-border dispute resolution.

Legal Support for International Trade and Risk Management

The proliferation of sanctions against Russia has forced a fundamental restructuring of cross-border supply chains. Consequently, navigating the legal frameworks governing international trade in goods, services, data, and intellectual property – including strict sanctions compliance – has become critical. BRACE Law Firm's team delivers comprehensive legal counsel across all facets of international trade, currency, and customs law.

When Does a Business Require International Trade Counsel?

Corporate owners, CFOs, and Legal Directors typically engage our firm under the following circumstances:

1. Structuring an initial or non-standard cross-border transaction, requiring a robust contract that specifies governing law, dispute resolution mechanisms, and sanctions risk mitigation.
2. Challenging customs authority decisions regarding HS classification, customs valuation adjustments, or the denial of tariff preferences.
3. Managing customs audits, including both desk and on-site inspections post-release.
4. Navigating banking compliance when financial institutions refuse payments, suspend transactions, or request currency control documentation.
5. Addressing repatriation delays and mitigating potential administrative liability under Article 15.25 of the Russian Code of Administrative Offences.
6. Revising contractual frameworks to reflect restructured supply chains involving new counterparties, jurisdictions, routing, currencies, or payment agents.
7. Litigating against foreign counterparties for breach of contract, pursuing recovery either abroad or in Russian courts.
8. Enforcing or recognizing foreign arbitral awards and state court judgments within the Russian Federation (or vice versa).
9. Defending clients in administrative offense proceedings under Chapter 16 of the Code of Administrative Offences or during investigations for customs-related criminal offenses.
10. Facilitating the entry of foreign investors into Russian projects or strategically closing domestic operations.

If your specific challenge is not outlined above, please detail your matter. We will promptly confirm our capacity to assist.

International Trade Law: Legal Counsel

Cross-border transactions are rarely governed by a single jurisdiction's laws. International treaties, chosen domestic laws, trade usages, and standardized rules concurrently regulate global trade. Determining precedence and the interaction of these legal sources must occur during the drafting phase, not when a dispute erupts.

We navigate this multi-layered regulatory environment by:

1. Governing Law – Defining party autonomy limits, addressing the absence of choice-of-law clauses, and aligning the governing law with the chosen forum.
2. International Treaties – Applying the UN Convention on Contracts for the International Sale of Goods (CISG, Vienna 1980) and strategizing its explicit exclusion.
3. Soft Law Instruments – Integrating the UNIDROIT Principles of International Commercial Contracts, Incoterms® 2020, standard forms, and trade usages into the contractual framework.
4. Personal Law of Foreign Counterparties – Verifying legal capacity, signatory authority, and form requirements.
5. Proving Foreign Law – Establishing the substance of foreign law when litigating foreign-governed contracts within Russian courts.

Cross-Border Contracts and Transaction Structuring: Legal Support

International commercial relations demand specialized expertise in private international law, customs and currency regulation, sanctions compliance, foreign legislation, and the practical application of arbitration agreements.

Structuring errors manifest late and carry severe financial consequences: an unenforceable arbitration clause, a misaligned delivery basis, payment terms detached from currency deadlines, or an incorrect HS code. Therefore, we evaluate cross-border agreements holistically, analyzing them against the client's broader operational portfolio, applicable domestic and foreign law, and current enforcement trends.

We draft and review international trade contracts, integrating applicable substantive law (Russian, foreign, or the CISG); Incoterms® 2020 delivery bases; enforceable dispute resolution mechanisms; sanctions and compliance clauses; precise currency terms (currency of price vs. payment, settlement timelines); and robust force majeure or hardship provisions.

Beyond the sale of goods, we structure cross-border distribution, agency, licensing, contracting, and logistics agreements.

Currency Regulation and Foreign Exchange Law: Legal Support

Russian currency legislation remains highly volatile. Requirements regarding revenue repatriation, settlement procedures, and transactions with specific non-residents undergo frequent revisions, notably through special economic measures. However, the framework of liability and the methodology of interacting with authorized banks as currency control agents remain consistent.

We advise on Federal Law "On Currency Regulation and Currency Control" and Central Bank regulations. Our services include classifying transactions for bank registration; auditing contract structures for compliance with repatriation and settlement deadlines; managing communications with authorized banks during inquiries or payment suspensions; mitigating administrative risks under Article 15.25 of the Code of Administrative Offences; evaluating criminal risks (Articles 193, 193.1 of the Criminal Code); and designing internal currency compliance protocols.

Cross-Border Settlements and Payments

Executing international payments is no longer a mere administrative task. Selecting the appropriate bank, correspondent chain, payment agent, currency, and settlement structure now dictates contract viability as much as the core commercial terms.

We analyze proposed settlement structures for compliance with currency laws and restrictive measures. We draft agreements for payment agents and intermediaries, explicitly allocating liability for failed transfers. Furthermore, we assess settlements utilizing offsets, assignments, or third-party payments, detailing the resulting currency and tax implications. We also advise on utilizing national currencies, digital financial assets (DFAs), and cryptocurrencies in foreign trade, and represent clients facing bank refusals or blocked funds.

Customs Law and Disputes: Legal Representation

Customs regulation in Russia relies upon Eurasian Economic Union (EAEU) law – primarily the EAEU Customs Code – and Federal Law No. 289-FZ "On Customs Regulation in the Russian Federation". The vast majority of disputes center on three critical areas: tariff classification, customs valuation, and rules of origin.

Our team provides counsel across all stages, from preliminary planning and securing advance classification rulings to cassation appeals. BRACE's legal team supports both isolated customs disputes and the routine operations of international traders.

Disputes with Foreign Counterparties: Litigation and International Arbitration

Litigating against foreign entities differs from domestic disputes not simply in the complexity of the substantive law, but in jurisdictional hurdles, choice of law, proving foreign law, securing interim measures, and – most importantly – the ultimate enforceability of the award.

We architect international dispute resolution strategies starting from the end goal: where and how the judgment will be successfully enforced.

Our Engagement Model for International Trade, Currency, and Customs Law

1. Providing targeted consultations on specific cross-border issues.
2. Managing project-based engagements for transactions or international disputes.
3. Conducting legal audits of existing contractual and compliance frameworks.
4. Delivering ongoing retainer-based legal counsel with a dedicated team.
5. Facilitating training sessions for internal legal and financial departments.

A firm partner coordinates every engagement and remains actively involved throughout the project lifecycle, ensuring elite execution. Clients receive proactive status updates without needing to inquire. We finalize the fee structure prior to commencement, offering predictable billing models tailored to corporate budgeting requirements.

Representative Matters: International Trade, Customs, and Foreign Exchange

1. Harmonizing the Cross-Border Supply Chain for a Global Life Sciences Company. The client procured active pharmaceutical ingredients (APIs) and finished products from nine international suppliers using fragmented contracts inherited from various divisions. Risk transfer points and cost allocations varied, and force majeure clauses were generic. We audited the existing portfolio and developed a suite of standardized international trade contracts aligned with Incoterms® 2020 (EXW, FCA, CPT, CIP, DAP). We precisely defined risk transfer, transport/insurance cost allocation, and customs clearance obligations. We also drafted tailored force majeure and hardship clauses to address new regulatory restrictions and trained the legal and procurement teams. The client successfully transitioned to the unified framework, reducing supply agreement negotiation times from six to two weeks.
2. Defending a Major Russian Electronics Distributor During a Post-Release Customs Audit. A field customs audit scrutinized the declared customs valuation and the application of tariff preferences. We established a centralized communication protocol with the inspectors, controlled the scope of document requests, and prepared personnel for interviews. Concurrently, we conducted an internal risk assessment on the disputed shipments, formulating a robust defense for each transaction prior to the issuance of the audit report. Ultimately, we filed comprehensive objections. The projected reassessment was reduced by 66%, with three out of five claims entirely dismissed during the administrative review.
3. Representing a Leading Cosmetics Exporter in Currency Control Proceedings. The client faced administrative liability under Article 15.25(4) of the Code of Administrative Offences for failing to repatriate foreign currency revenue on time, caused by a correspondent bank's payment block. We successfully negated fault by evidencing the client's exhaustive efforts to secure payment, including pre-litigation correspondence, attempts via alternative financial channels, and a contract extension executed before the initial deadline. The administrative case was dismissed for lack of an offense. Subsequently, we audited the export contract portfolio and integrated mechanisms for the rapid extension of settlement deadlines.
4. Restructuring Cross-Border Payment Architecture for an Industrial Equipment Manufacturer. Following banking refusals to process payments to Asian suppliers, the client faced halted supply chains and mounting penalties. We evaluated alternative settlement structures against currency laws and restrictive measures, isolating options devoid of criminal risk under Article 193.1. We drafted payment agent agreements that strictly allocated liability for failed transfers. We also structured settlements in national currencies and executed intercompany netting arrangements, analyzing the tax and currency implications of each. We provided the authorized bank with the necessary compliance documentation, successfully restoring payments across all active contracts within seven weeks.
5. Executing Sanctions Compliance Audits for an Industrial Exporter. The company intended to export equipment to an end-user in a third country via an intermediary. We conducted comprehensive screening of the intermediary, end-user, and ultimate beneficial owners (UBOs) against applicable export controls and foreign restrictive measures. We analyzed the dual-use status of the equipment and assessed the transit jurisdictions. We uncovered a critical risk profile at the end-user level previously unknown to the client. We proposed an alternative transaction structure, drafted sanctions clauses permitting unilateral termination, and implemented an internal counterparty compliance protocol, training the commercial and legal teams on its application.
6. Resolving a Medical Device Supply Dispute with a Chinese Counterparty. A client transitioning to a PRC-based supplier lacked experience in the jurisdiction. We verified the supplier's corporate standing and signatory authority via Chinese registries. We drafted a bilingual contract stipulating the supremacy of the Russian text. Prioritizing enforceability, we selected arbitration under CIETAC rules, aligning with the supplier's asset location. We embedded robust risk mitigants, including partial prepayments, pre-shipment inspections, payment retainage until final acceptance, and strict delay penalties. When the supplier missed the initial delivery deadline, our execution of the pre-agreed claims procedure resolved the dispute without arbitration: the supplier delivered the outstanding goods and paid the accrued penalties.

International Trade, Currency, and Customs Law Services

1. Strategic legal support for foreign economic activity (FEA)
2. Drafting and expert review of international trade agreements, including Incoterms® 2020 structuring
3. Structuring cross-border commercial transactions
4. Negotiating and structuring contracts between Russian and Chinese entities
5. Advising during international commercial negotiations
6. Navigating EAEU customs and trade regulations
7. Representing clients in cross-border commercial disputes
8. Litigating before international commercial arbitration tribunals
9. Managing import and export litigation
10. Recognizing and enforcing foreign arbitral awards and state court judgments
11. Recovering debts and damages arising from international carriage and freight forwarding
12. Auditing and mitigating tax and customs risks in international trade
13. Advising on currency control operations and managing interactions with authorized banks
14. Defending clients in currency control administrative proceedings (Article 15.25 of the Code of Administrative Offences)
15. Providing white-collar defense for customs and currency offenses (Articles 193, 193.1, 194 of the Criminal Code)
16. Auditing cross-border settlement schemes, including payment agent structures
17. Providing comprehensive legal counsel for importers and exporters
18. Representing business interests before customs authorities
19. Advising on customs procedures, rules of origin, and tariff/non-tariff barriers
20. Managing customs audits (desk and field inspections, including post-clearance audits)
21. Challenging unlawful decisions, actions, or inaction of customs authorities
22. Disputing customs valuation adjustments (CVA)
23. Defending declarants against retroactive customs duty assessments
24. Recovering overpaid or unlawfully exacted customs payments
25. Pursuing damages against customs authorities
26. Litigating HS tariff classification disputes
27. Challenging the denial of tariff preferences and customs exemptions
28. Managing disputes and drafting agreements with customs representatives
29. Defending clients in customs administrative offense cases (Chapter 16 of the Code of Administrative Offences)