Sponsored briefing: Hot topics in Turkish renewable energy market

Sponsored briefing: Hot topics in Turkish renewable energy market

As of February 2022, Turkey’s renewable energy capacity is approximately 53,500 MW amounting to just over half of Turkey’s total installed capacity. This was largely thanks to YEKDEM, Turkey’s USD-based feed-in tariff. Depending on the renewable energy source, this mechanism provided guaranteed purchase prices between US$7.3 and US$13.3 per KWh for the first ten years of the operation period.

The USD-based YEKDEM was replaced by a TRY-based YEKDEM for the power plants commissioned after 30 June 2021. Although the TRY-based prices are escalated, this new YEKDEM has not provided a meaningful contribution to the installation of new renewable capacities. This is mainly due to the heavy devaluation of TRY, which triggers higher interest rates and equity contribution requirements. Continue reading “Sponsored briefing: Hot topics in Turkish renewable energy market”

Sponsored briefing: Impact of ESG on M&As and financings and trends to watch

Sponsored briefing: Impact of ESG on M&As and financings and trends to watch

Economic decisions over the years have had major impacts on the scarce resources of the planet. Overconsumption and over-production brought the environment to a state of destruction and degradation. Consequently, all these alarming developments have led the academics, analysts, commentators, and scientists to work on the solutions to prevent a catastrophic future. As a result, sustainability has become one of the key considerations in decision-making processes.

Sustainability often consists of interdependencies that exist between environment, society, and economy. These three factors can be referred to as Triple Bottom Line and 3Ps as they may also be called as people, planet and profit. Under this Triple Bottom Line measuring system, unlike the traditional reporting framework, organisational performance is measured using environmental and social dimensions along with economic aspects. These are also important elements to measure the sustainability goals. Continue reading “Sponsored briefing: Impact of ESG on M&As and financings and trends to watch”

Sponsored briefing: Legal framework for Turkey’s transition to e-mobility has been introduced

Sponsored briefing: Legal framework for Turkey’s transition to e-mobility has been introduced

Based on the aim of compliance with the objectives of the European Green Deal, Turkey’s e-mobility sector has been experiencing a significant development to reduce greenhouse gas emissions from the transportation sector and to accelerate the transition to a cleaner and more sustainable mobility. Therefore, Turkey has recently introduced new regulations and various incentive schemes relating to e-mobility.

In this context, an amendment of the Electricity Market Law Nr. 6446 entered into force on 21 December 2021 that regulates the procedures and principles on e-mobility activities as well as the rights and obligations of the market participants. Furthermore, new regulations on operation licences for electric vehicle charging stations and on installment of charging points in parking areas have been introduced. In addition, regulations that provide the legal framework for the e-scooter sector as a significant part of micro-mobility entered into force. The Turkish government has also adopted incentives for investments in electric vehicle charging stations. As a result of these regulations, it is expected that the number of electric vehicles and the electric vehicle charging stations will significantly increase in Turkey within the following years. Continue reading “Sponsored briefing: Legal framework for Turkey’s transition to e-mobility has been introduced”

Sponsored Q&A: Osman Ertürk ÖZEL, LL.M., managing partner, ÖZEL Attorney Consultancy

Sponsored Q&A: Osman Ertürk ÖZEL, LL.M., managing partner, ÖZEL Attorney Consultancy

Given Turkey’s recent economic problems including the currency crash and inflation together with continued problems created by the Covid-19 pandemic, how is this affecting your firm?

The economic recession in Turkey existed a year before the beginning of Covid. Covid has just made this situation obvious. Serious fluctuations in currency along with over 100% inflation rate have deepened the existing economic crisis. This has caused a disruption in all kinds of production in the markets. The fact that banks kept up the markets through loans has greatly disrupted the balance in the market. As a consequence, the case portfolio in our office has shifted to legal procedures such as breach of contract, mediation, litigation and internal arbitration. Continue reading “Sponsored Q&A: Osman Ertürk ÖZEL, LL.M., managing partner, ÖZEL Attorney Consultancy”

Sponsored briefing: Recent patent highlights in Turkey

Sponsored briefing: Recent patent highlights in Turkey

Geographically positioned between Europe and Asia, Turkey is a strategically placed country, with a population of 82 million and a larger youth population than any EU member state. Taking its place on the list of G20 countries, Turkey aims to position itself in the global value chain and strengthen its export platform by focusing on high-tech patents, including electronic machinery and equipment, automotive spare parts, railway and maritime transport, energy generation and efficiency projects. In addition, as a natural transport hub, Turkey is a transitional trade platform between Europe and Asia, which significantly increases the relevance of appropriate IP rights protection.

Turkey has substantially harmonised its intellectual property laws with the EU legislation and the international agreements such as the Paris Convention and TRIPs, to provide effective legal means for enhanced patent enforcement capabilities. Continue reading “Sponsored briefing: Recent patent highlights in Turkey”

Sponsored briefing: Turkish Citizenship by Investment

Sponsored briefing: Turkish Citizenship by Investment

The geopolitical and strategic importance of the Republic of Turkey – established in 1923 by its founding father Mustafa Kemal Atatürk – to the European Union, America, Russia, the Middle East, and Asia is undeniable. Being a central meeting point of the continents of Asia, Europe, and Africa via the Mediterranean, and its membership of NATO, the Council of Europe, and its current accession talks with the European Union has meant that Turkey has become a significantly important partner for many states around the world.

According to the Turkish constitution, the word Turk, as a political term, includes all citizens of the Republic of Turkey without distinction of or reference to race or religion. Although more than nine-tenths of the population identify their religious identity as Muslim, Turkey is nonetheless a secular country. Certainly, in 1928 Islam was removed as the official state religion and since then, the military has maintained a vigilant watch over Turkey’s political secularism. Continue reading “Sponsored briefing: Turkish Citizenship by Investment”

Sponsored briefing: Pre-contractual negotiations during M&A transactions in Turkey

Sponsored briefing: Pre-contractual negotiations during M&A transactions in Turkey

The pre-contractual phase of the acquisition of a company or merger of companies typically begins with the first contact between the parties and ends in the best case scenario with the conclusion of the contract. This phase plays a vital role for the wellbeing of the transaction: parties reach various, usually non-binding, but possibly also legally binding preliminary agreements at this stage, from which, possible claims for performance or damages can arise.

Often a ‘due diligence’ is already carried out during this stage, which can serve an important function in the context of warranty claims. Even if the parties have not concluded legally binding preliminary agreements, ‘pre-contractual party obligations’ already arise under Turkish law. Thus, the negotiating parties to an M&A deal bear the risk of being held liable for ‘culpa in contrahendo’, that is a legal principal in contract law for many civil law countries including Turkey, which stipulates the duty to negotiate with care before the contract is concluded. Continue reading “Sponsored briefing: Pre-contractual negotiations during M&A transactions in Turkey”

Sponsored briefing: Acquisition of properties in Turkey by foreign-capitalised companies

Sponsored briefing: Acquisition of properties in Turkey by foreign-capitalised companies

Starting from the early 2000s, Turkey became increasingly popular in the eyes of foreign investors. By increasing their market share every following year, the real estate investments reached a significant level as a result of such foreign investments, which include different types of investments and investors. Direct investment by acquisition of a property following the incorporation of a company in Turkey; indirect investment by acquisition of shares of a company, which already own a property; or investment by forming of a joint venture with a Turkish company may be regarded as examples of foreign investments in the Turkish real estate market. Similarly, the countries of origin of the investors also diversified throughout the time. Today, in addition to the US and Europe, Turkey welcomes numerous investments from the Gulf Region countries and Far East countries as well.

The main group of investors in the Turkish real estate market include foreign real estate funds/companies; project development companies; investment companies as well as foreign persons who wish to acquire a property in Turkey either for personal use or to obtain Turkish citizenship. The investments may focus on shopping malls, office buildings, residences, or involve construction of hotel projects, entering into partnerships with the owners of completed projects or acquisition of all shares of the same, etc. Furthermore, the investors also prefer to be a part of revenue-sharing agreements or become a partner of the government in construct-operate-transfer1 projects or public private partnership (PPP)2 projects. Continue reading “Sponsored briefing: Acquisition of properties in Turkey by foreign-capitalised companies”

Sponsored briefing: Q&A with partner Egemen Egemenoglu

Sponsored briefing: Q&A with partner Egemen Egemenoglu

1. Given Turkey’s recent economic problems and the problems created by the Covid-19 pandemic, how is this affecting your firm?

We can proudly say that we have successfully surpassed the challenging position that came along with the Covid-19 pandemic in all respectable matters thanks to our comprehensive experience gained throughout the 53 years in which we have provided legal services in Turkey. In these 53 years, our firm had to take innovative and cautious steps in order to tide over many different challenges such as several economic and political crises we have encountered as a country. So, when the first cases of Covid-19 were reported by the officials in Wuhan City, China, in December 2019, we knew that we had to prepare for the worst-case scenario. For this reason, we have accelerated our digitalisation process – thus taking it into a next level even though our digital infrastructure was already at advanced levels. As such, when the first Covid-19 case was announced in Turkey on 10 March 2020, we were already prepared to detach ourselves from our physical offices and started to work from our homes on 15 March 2020 through the decision mutually taken by our partners. Continue reading “Sponsored briefing: Q&A with partner Egemen Egemenoglu”