State Aid

10 Mar 2021

Gecić Law’s Milestone Win in Landmark State-Aid Case Attracts Media Attention

Gecić Law is currently representing Bosnia and Herzegovina in a procedure with the Energy Community, a landmark case across the Balkans related to alleged state aid in the construction of Block 7 of the Tuzla Thermal Power Plant, a project worth USD 1.1 billion, with co-counsel Marić & Co. Law Firm based in Sarajevo. Launched in 2018 by the Secretariat of the Energy Community against Bosnia and Herzegovina, the process has been marked by violation of due process, complete disregard for the rights of the defense as well as continuous bids of the prosecution to speed up the process and […]

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05 Mar 2021

Our Energy practice is growing every day

Our Energy practice team has repeatedly demonstrated its credibility by devising unique opportunities for greenfield and brownfield investments for our clients. We provide comprehensive solutions related to privatization, regulatory compliance and due diligence in cooperation with eminent regulatory, corporate and financial experts. Counsel to Norwegian NBT AS on Wind Farms Project in Serbia Our latest accomplishment in the energy sector is providing counsel to NBT AS, Norway, a utility-scale wind power developer (exceeding 100 KW of power), in partnering with WV International (formerly Windvision).  WV International has been developing wind farm projects in Serbia since 2010 and has been active […]

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13 Jul 2018

Case Closed: Energy Community Drops Dispute Against EPS and Republic of Serbia Over Kolubara B Project

Gecić Law has successfully advised the Republic of Serbia and EPS, one of the largest energy companies in the region, in a probe led by Energy Community Secretariat regarding alleged State support for the multi-million-euro Kolubara B project. On Monday, June 25, 2018, the Energy Community Secretariat announced the parties reached an amicable solution bringing the two-year long case to an end. The Kolubara B power plant project will enable EPS to add 700 MW of electricity annually, constituting the most important investment in the Serbian energy infrastructure in the last four decades. The ruling not only confirmed our team’s […]

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08 Nov 2017

Gecić Law Advises in Yet Another Landmark Decision Before the European Commission

Gecić Law acted as legal counsel to the Government of Serbia and the Železara Smederevo steel mill with respect to an European Commission (EC) investigation on the historical State aid received by the old company, and the potential responsibility of Hesteel Serbia to reimburse it, under the Stabilisation and Association Agreement (SAA).  On Wednesday, November 8, 2017, Johannes Hahn, Commissioner for European Neighborhood Policy and Enlargement Negotiations, informed the Prime Minister of the Republic of Serbia, Ana Brnabić, that the European Commission concluded that “the HeSteel-owned steel mill does not have to reimburse any state aid received in the past” (link).  […]

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15 Sep 2017

Serbia and Montenegro: state aid spotlight on corporate profit tax

Both Serbia and Montenegro have come under pressure from the European Commission to amend their respective Corporate Profit Tax Acts to bring tax incentives in line with EU law. This update provides a closer look and analysis, which suggests that amendments are an option worth considering for both Serbia and Montenegro. However, any such legislative change would need to be implemented in a manner that takes into account the interests of all stakeholders, including the interests of investors benefiting from the existing incentive schemes. The European Commission in Chapter 8 of its Screening Report for Serbia, emphasized that specific aid […]

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27 Sep 2016

EU State Aid: European Commission Bitting More Than It Can Chew?

McDonald’s might be the next company facing the obligation to pay back taxes, only this time to Luxembourg, in the amount of approximately $500 million, according to Financial Times estimates. In December 2015, the European Commission has opened a formal investigation of Luxembourg’s tax treatment in case of McDonald’s. It held a preliminary view that “a tax ruling granted by Luxembourg may have granted McDonald’s an advantageous tax treatment in breach of EU State aid rules.”1  The Commission is yet to render a decision that would conclude said formal investigation against American fast food giant and contain its final judgment […]

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05 Jan 2016

A State Aid Perspective: Amendments to the Act on Incentives in Agriculture and Rural Development

On 12 December 2015, the Serbian Parliament enacted the amendments to the Act on Incentives in Agriculture and Rural Development.  The law was promulgated on 22 December and will be enforced as of 1 January 2016. Before we review the changes the Act on Incentives in Agriculture and Rural Development introduces, we will address the burning issue that all beneficiaries of agricultural subsidies might feel threatened by – whether these subsidies are currently caught by state aid rules (the “State Aid Act”) leaving beneficiaries open to potential recovery claims from the State Aid Authority? Тhe purpose of the Act on Incentives in […]

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