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The Central Bank of the Russian Federation (CBR) recently adopted new currency regulations affecting capital contributions and long-term loans in hard currency, as summarized below. The new provisions appear intended to clarify and simplify Russian currency legislation, but in some cases they may have the contrary effect of delaying or complicating cross-border investment and financial transactions. In addition, they strengthen the involvement of the CBR in even the most routine transactions, increasing the bureaucratic burdens on foreign investors and lenders.

A new code for the Portuguese Securities Market is expected to come into force before the end of 1998. The new code, which is now being prepared and whose main features have already been submitted and approved by the Ministry of Finance, is expected to be more approachable and concise than the one in force at present, which has been broadly criticized for being over-regulatory and for duplicating provisions already included in other laws.

Germany will produce detailed legislation to ensure a smooth transition into the third stage of Emu. It includes specific rules for reference rates and redenomination. By Katrin Kühnle of Hengeler Mueller Weitzel Wirtz, Frankfurt

The introduction of a single currency will provide scope for a stronger Europe-wide securitization market, which should grow from the start of the transition to the euro. By Gilles Thieffry and Jonathan Walsh, Norton Rose, London

Shares of China Telecom raised HK$30.3 billion in a dual listing on the Hong Kong and New York stock exchanges. The deal is China's largest listing to date. Hong Kong-based investors bought almost 50% of China Telecom shares. The company offers mobile services in the Guangdong and Zhejiang provinces. US firm Sullivan & Cromwell advised on US law to the issuer. General corporate partners Chung Wei and Robert Delamater led the firm's team.

Petroleum, Minerals, Energy & Resources Law

Alan Cameron, chairman of the new Australian Corporations and Financial Services Commission, talks to Graham Field

State of Rio Grande do Sul: On October 21 1997, Companhia Estadual de Energia Elétrica sold two of its three distribution networks for R3.145 billion (US$2.85 billion). The premiums over the minimum asking prices were 82.62% for the Centre-West distributor and 93.55% for the North-Northeast distributor.

US firm Covington & Burling and French firm August & Debousy have entered into an exclusive cooperation agreement. The announcement, made in Paris this month, followed the approval of the exclusive referral relationship licence by the French Bar earlier in the year. The arrangement is part of a growing international strategy for the firms. "It was a joint initiative," says Jonathan Blake, partner at Covington & Burling in Washington. "We knew each other previously through working for the same clients. It was the natural outgrowth of personal and professional relationships." Covington & Burling has already had US lawyers working in August & Debousy's Paris office. Covington also has foreign offices in London and Brussels.

Despite confusion created by a speech made to the IBA by a leading Japanese lawyer, it is clear that reforms to the Japanese legal market will not enable international firms to hire Japanese lawyers (bengoshi). Foreign firms in Japan have been lobbying the ministry of justice commission to fully liberalize the legal system, and the decision to continue restrictions on foreign firms in Tokyo has been greeted with disappointment. Toshiro Nishimura, name partner of Nishimura & Partners and member of the ministry of justice commission, caused the confusion when speaking of the advancement of partnerships between Japanese and international firms. However, he has since clarified that he was referring to the decision to relax the rules on joint enterprises. The few firms which work in a joint enterprise will now be able to work on all areas of international law, including litigation. Work on any domestic law is still forbidden. Nishimura claims the reforms will be beneficial to foreign firms. He says: "I expect the number of firms with cooperation pacts to rise, this should be an incentive for firms."