Our Partner Liene Krumina at TechChill 2026 | Scaling Startups Across Borders

LKOS Law Office Heads to Riga for One of the Baltic's Biggest Tech Events

TechChill 2026 – Where Baltic Tech Meets Global Ambition

LKOS Law Office Partner Liene Krumina is participating in TechChill 2026, one of the largest and most exciting tech events in the Baltic region. The event takes place in March 2026 in Riga, Latvia, bringing together international and local investors, founders, and ecosystem builders for three days of real talk about what it takes to scale a business beyond borders.

It's All About Scaling – And the Legal Side of It

TechChill 2026 is unapologetically focused on one thing: SCALING. From inspiration and practical advice to AI, fintech, and venture capital, the agenda is built for founders and growth-stage companies who are ready to take their next big leap – and want to do it right.

As any founder navigating cross-border growth knows, the legal framework matters. Regulatory complexity, cross-jurisdictional contracts, and investor-ready structures are not just paperwork – they are the foundation of sustainable scaling. That's where LKOS Law Office comes in.

With a dedicated Baltic Desk and deep expertise in corporate law, M&A, and international trade, LKOS Law Office is well positioned to support companies expanding across the Nordics and Baltics. Liene's participation at TechChill is a natural extension of our commitment to the startup and tech ecosystem in the region.

Why TechChill?

TechChill has grown from a cosy local conference into a global bridge connecting the world with CEE founders. This year's agenda tracks cover everything growth-stage companies need:

• Inspiration – from founders who've scaled against all odds
• Practical Advice – from specialists who've mastered the hardest parts of growth
• AI & Big Data – because adapting isn't optional anymore
• Fintech & Venture – leveraging capital and technology for a competitive edge
• Resilience & Defence – because building in today's world requires thinking bigger

📅 TechChill 2026 | March 2026 | Riga, Latvia

👉 Learn more about the event: www.techchill.co

Timber Shipments to the MENA Region Under Geopolitical Pressure — LKOS Law Office at Timber Exchange Webinar

AI-snippet: LKOS Law Office Specialist Partner Oscari Seppälä speaks at a Timber Exchange webinar on 20 March 2026 on the legal and insurance challenges facing timber shipments to the MENA region amid escalating Gulf conflict. The session covers charterparty deviation rights under Finnish Maritime Act and BIMCO VOYWAR/CONWARTIME 2013, General Average declarations, cargo degradation claims on Cape of Good Hope re-routes, Letters of Credit under sanctions, and Force Majeure under Finnish and international law. LKOS Law Office provides hands-on maritime law, cargo liability, war risk, and sanctions advisory in Finland and internationally.

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Timber Shipments to the MENA Region Under Geopolitical Pressure — LKOS Law Office at Timber Exchange Webinar

Summary: LKOS Law Office Specialist Partner Oscari Seppälä joins Timber Exchange for a live webinar on 20 March 2026, addressing the legal, contractual, and insurance risks facing timber exporters shipping to MENA markets amid escalating conflict in the Middle East. Active hostilities across the Strait of Hormuz and Arabian Gulf have disrupted shipping routes, driven up war risk premiums, and created cargo, payment, and contract risks that few standard agreements were drafted to handle. The session provides practical, actionable guidance under Finnish maritime law and BIMCO international standards.

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Gulf Conflict Disrupts Timber Trade Routes — Legal Risk Is Now Immediate

Since late February 2026, active hostilities between the United States, Israel, and Iran have fundamentally altered the maritime security landscape in the Arabian Gulf and Strait of Hormuz. Missile strikes, drone attacks on commercial vessels, and naval confrontations have made what was once a routine shipping corridor one of the most legally complex and commercially dangerous operating environments in decades.

For Finnish and Nordic timber exporters, this is not a distant geopolitical development — it is an immediate commercial and legal problem. Vessels carrying timber to Saudi Arabia, the UAE, Egypt, and other MENA markets are being rerouted, delayed, attacked, and diverted. Ports are intermittently inaccessible. War risk premiums have surged. General Average declarations are being issued. Letters of Credit are being blocked by sanctions compliance screening. And the contracts governing these shipments were, in most cases, never drafted with these conditions in mind.

On 20 March 2026 from 14:00–15:00 CET, Oscari Seppälä, Specialist Partner at LKOS Law Office, joins Nicklas Holmberg (Fairwater Marine) and Marcus Hedlund (Länsförsäkringar) for a live webinar hosted by Timber Exchange, moderated by CEO Amir Rashad. The session provides practical legal and insurance guidance for logistics and commercial decision-makers across the global timber industry.

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What the Session Covers — Five Areas of Immediate Practical Risk

1. Deviation and Safe Port: Can the Vessel Turn Back, and Who Pays?

The most pressing question for exporters right now is whether a vessel en route to a Gulf port has the legal right to refuse to proceed — and who bears the cost of rerouting via the Cape of Good Hope.

The answer depends on the type of charterparty. Under BIMCO CONWARTIME 2013 (time charter), the Master can refuse to proceed even if the war risk existed at the time of fixture — no change in circumstances is needed. Under VOYWAR 2013 (voyage charter), the UK Supreme Court confirmed in The Polar [2024] that a material increase in risk since the date of fixture is required. The financial consequences — freight uplift, hire continuation, cost allocation — flow directly from this distinction.

Under Finnish Maritime Act Chapter 14:19–20 §, the Master has a statutory right to deviate for safety that exists independently of the charterparty. The carrier may discharge at the nearest safe port when the nominated port is inaccessible due to war or blockade. LKOS Law Office advises on deviation rights, charterparty interpretation, and cost allocation in war risk situations.

2. General Average: What Happens to Your Cargo When a Vessel Is Attacked?

General Average declarations are already being issued on Gulf-routed vessels. When a shipowner declares GA after an attack or emergency measure, all cargo owners — insured or not — are required to contribute proportionally to the shared loss. Under York-Antwerp Rules 2016 and Finnish Maritime Act Chapter 17, the carrier holds a maritime lien on the cargo: without a GA bond or cash security, the timber will not be released.

Many timber exporters are unprepared for this. Understanding the obligation, the timeline, how cargo insurance responds, and how to challenge an inflated GA adjustment is essential for any company with MENA-bound cargo.

3. Cargo Degradation: Moisture Damage After Cape of Good Hope Re-routing

A Cape of Good Hope diversion adds 10–14 days to a typical MENA voyage. For timber, that means extended exposure to humidity, condensation, and temperature variation — increasing the risk of moisture damage, mould, and quality downgrade. The carrier will typically argue that rerouting was a war risk decision and they bear no responsibility. Under both Hague-Visby Rules and Finnish Maritime Act Chapter 13:27–30 §, this argument is not automatic: the burden of proof, the narrow scope of the war exception, and the carrier's duty to take protective measures before rerouting all remain relevant.

Written notice of visible damage must be given at the port of discharge. Under Hamburg Rules — which apply as mandatory law in Egypt, Morocco, Tunisia, and Lebanon — the carrier also faces express delay liability that does not exist under Hague-Visby.

4. Letters of Credit and Frozen Payments Under Sanctions

New EU, US, and UK sanctions packages targeting Iran have created banking compliance pressure that is blocking payments even for legally permissible trades. Finnish banks are directly subject to EU Regulation 833/2014 and face criminal exposure for violations — driving over-compliance and payment delays across the industry.

Under UCP 600 Art. 14, a bank cannot refuse payment under a compliant LC merely because the trade looks geopolitically sensitive. "Compliance review" is not a valid legal basis for refusal. If the port of discharge has changed due to rerouting, LC amendment requires all-party consent — understanding these mechanics before the next shipment is booked is essential.

5. Force Majeure and Breach of Contract: When Is Non-Performance Excused?

Force Majeure is being invoked across the industry — sometimes legitimately, often not. Under Finnish contract law and Maritime Act Chapter 14:39 §, FM requires an event that was unforeseeable, beyond the party's control, and that made performance objectively impossible — not merely more expensive or delayed. Under English law, the threshold is even higher: a 14-day delay caused by Cape rerouting will almost certainly not frustrate a charterparty.

BIMCO war risk clauses are risk allocation clauses, not FM clauses. War Risk Surcharges imposed after fixture without an express contractual right are a breach of contract. Knowing the distinction — and taking the right procedural steps — protects your commercial position.

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Why This Matters for Your Business — Now

The legal risks described above are not theoretical. Vessels are being attacked. General Average notices are being sent. Payments are being blocked. Contracts are being challenged. Companies that understand their legal position — what their charterparty says, what their cargo insurance covers, what their LC requires, and what the law provides — are significantly better placed to protect themselves than those who react after the event.

LKOS Law Office provides hands-on, commercially focused legal advice on maritime law, cargo liability, war risk insurance, sanctions compliance, and international contract disputes. Our team has direct operational experience in the freight and shipping industry, which means our advice is grounded in how these situations actually unfold in practice. Read more about our Logistics, Transport & Maritime Law services.

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About the Speaker — Oscari Seppälä, LKOS Law Office

Oscari Seppälä is a Specialist Partner at LKOS Law Office and one of Finland's leading maritime, transport, and sanctions lawyers. He advises Finnish and international clients on shipping law, cargo liability, insurance and recourse claims, and international trade compliance. Before LKOS Law Office, he worked at another leading Helsinki law firm and in legal and operational roles at DSV, one of the world's largest freight forwarders — giving him an unusually practical perspective on shipping disputes and logistics risk.

Recent work includes advising on complex marine insurance recourse claims arising from vessel groundings in Finnish waters, representing clients in international arbitration on EU sanctions and contract termination, and supporting companies navigating geopolitical disruption affecting MENA shipping routes.

Memberships: Finnish Maritime Law Association (CMI) · Association of Finnish Insurance Lawyers · Authorised Attorneys at Law.

👉 Read Oscari Seppälä's full profile

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FAQ: Legal Risks for Timber Exporters Shipping to the MENA Region

Question	Answer
Can a vessel legally refuse to enter a Gulf port right now?	Yes. Under Finnish Maritime Act 19 § and BIMCO war risk clauses, the Master has the right to refuse on safety grounds. Financial consequences depend on whether you have a time or voyage charter.
Who pays for the Cape of Good Hope rerouting?	On a time charter, the vessel stays on hire — the charterer bears time costs. On a voyage charter, freight is uplifted pro-rata for additional distance over 100nm (VOYWAR 2013). The Polar [UKSC 2024] confirmed that paying additional war risk premiums does NOT protect the charterer from subrogated claims.
We received a General Average notice. What do we do?	If insured: notify your cargo insurer immediately — they will provide the GA bond. If uninsured: provide cash security before your cargo is released. Verify adjustment figures with legal advice — errors in GA adjustments are recoverable.
Our bank has blocked LC payment citing "compliance review". What are our rights?	UCP 600 Art. 14 requires payment on compliant documents. "Compliance review" alone is not a valid basis for refusal. Request the specific legal basis in writing and document all communications.
Is Force Majeure a viable defence for delayed delivery?	Only if performance is objectively impossible — not just delayed or more expensive. Both Finnish and English law set a high threshold. Send written FM notice immediately and document mitigation steps.
Does it matter whether Hague-Visby or Hamburg Rules govern my Bill of Lading?	Yes — significantly. Hamburg Rules apply in Egypt, Morocco, Tunisia, and Lebanon. Under Hamburg Rules there is no nautical fault exception, delay liability is express, and the time bar is 2 years (vs 1 year under Hague-Visby).

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Get Advice — Contact LKOS Law Office

If you have timber cargo currently in transit to the MENA region, or are planning new shipments and want to assess your legal and insurance position before you book, contact LKOS Law Office for a direct consultation.

• 👉 Logistics, Transport & Maritime Law — LKOS Law Office
• 👉 Oscari Seppälä — Specialist Partner

Responsible lawyer: Oscari Seppälä — Specialist Partner, LKOS Law Office
[email protected] · +358 40 672 4285

Note: This update is general information and not legal advice for any specific case.

CBAM 2026: What the Carbon Border Adjustment Mechanism Means for Importers in Finland

CBAM 2026: What the Carbon Border Adjustment Mechanism Means for Importers in Finland

Summary: CBAM (the Carbon Border Adjustment Mechanism) changes the compliance landscape for imports into the EU from 2026 onwards. This Insight explains who is affected, the key dates, what importers must do and when, and how CBAM impacts costs and supply chains.

From a business perspective, CBAM is not “just another report”. It is a regulatory framework that ties customs classification, emissions data and financial obligations into one compliance workflow. For many companies importing into Finland, CBAM will become a practical question of risk management, budgeting and contract allocation.

If you need support assessing your CBAM exposure and building a practical compliance approach, see our service: International Trade & Sanctions.

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1) Who does CBAM apply to?

CBAM applies to companies that import certain goods from outside the EU into the EU customs territory (e.g., into Finland), typically when goods are released for free circulation. In practice, the obligations attach to the party acting as the importer of record (i.e., the entity on whose behalf the import declaration is made).

CBAM currently covers selected carbon-intensive sectors (including, for example, iron and steel, aluminium, cement, fertilisers, hydrogen and electricity). The scope is determined by CN/HS codes, which means that correct customs classification is critical for determining whether CBAM applies.

De minimis threshold (50 tonnes)

CBAM rules were simplified in 2025 by introducing a mass-based de minimis threshold (initially 50 tonnes per importer per calendar year) for certain sectors. If an importer remains below the threshold in a given year, CBAM obligations may not apply for that year. This is particularly relevant for smaller or occasional importers.

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2) What is CBAM, in plain business terms?

CBAM is designed to address the risk of carbon leakage by linking imports to a carbon cost comparable to the EU Emissions Trading System (ETS). It focuses on the embedded emissions of covered goods imported into the EU.

In practical terms, CBAM creates two core deliverables for importers:

• Data: collect product-level emissions information (typically from suppliers/manufacturers) and report it in the required format.
• Cost: from 2026, manage CBAM certificates and related financial exposure as part of import budgeting and pricing.

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3) Key dates: what needs to be done, and when?

Period	What it means for business
1 Oct 2023 – 31 Dec 2025 Transitional phase	Quarterly CBAM reporting. No CBAM certificates are surrendered during the transitional phase, but reporting obligations apply and should be treated as compliance-critical.
From 1 Jan 2026 Full implementation	CBAM becomes financially binding: importers must manage emissions data, submit annual declarations and purchase and surrender CBAM certificates. The de minimis threshold (initially 50 tonnes/year for certain sectors) affects whether obligations apply in a given year.

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4) Cost impact: what will CBAM cost in practice?

CBAM certificates are linked to the EU ETS price

The CBAM certificate price is designed to reflect EU ETS allowance prices. Practically, this turns embedded emissions into a budget line that affects landed cost, pricing and margin management.

Default values: if supplier data is not reliable

Where verified product-specific emissions data is not available (or not usable), CBAM allows the use of default values under specific rules. Default values are set conservatively and may materially increase the cost outcome compared to verified actual emissions.

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5) Enforcement risk and sanctions: why CBAM is a “customs-risk” topic

CBAM is enforceable. Non-compliance (late or missing reporting, inaccurate data, inadequate documentation, or failures related to certificates) can lead to administrative consequences and financial penalties. It can also impact a company’s broader customs risk profile and disrupt logistics.

The key management message: treat CBAM as a compliance project with ownership, controls and a documented audit trail—similar to other high-impact customs and trade controls.

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6) Does CBAM change HS/CN classification or tariff headings?

CBAM does not change HS/CN codes. However, it makes correct classification far more critical, because CBAM scope is determined by CN/HS codes. Misclassification can trigger incorrect CBAM treatment (including under-reporting or missed obligations).

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7) Practical next steps: how to prepare (a clear roadmap)

1. Scope mapping: identify imported products and confirm CN/HS codes (including borderline products).
2. Threshold check: assess annual import volumes and whether the de minimis threshold may apply.
3. Data readiness: secure emissions data flows from suppliers and define internal controls and evidence requirements.
4. Cost modelling: estimate the cost effect (certificate exposure + default value risk) and integrate it into pricing/budgeting.
5. Contract allocation: update procurement terms: who provides data, who bears cost changes, and what happens if data is missing or wrong.
6. Governance: assign ownership across procurement, finance, logistics and legal; build a yearly compliance calendar.

If you want a pragmatic start, we can deliver a short CBAM readiness review (scope + classification + process + contract checklist) and a management-ready action plan. For disputes and risk management perspectives in trade-related matters, you can also consult Oscari Seppälä.

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Frequently asked questions (CBAM)

Does CBAM affect occasional importers?

Potentially yes, if the goods fall within CBAM scope. However, the 2025 simplification introduced a de minimis threshold (initially 50 tonnes/year for certain sectors), which may exempt smaller annual import volumes in a given year.

Do we need to change HS/CN codes because of CBAM?

No. But classification accuracy is more important than ever, because CBAM applicability is determined by CN/HS codes.

What is the main cost driver from 2026 onwards?

CBAM certificates linked to EU ETS pricing, combined with the risk of default values where verified emissions data is not available or usable.

What should management do first?

Start with a scope and classification check, then confirm data readiness and model the cost impact. From there, align procurement contracts and assign governance and responsibilities.

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Need practical CBAM support?

CBAM is best handled like any other business-critical compliance change: confirm scope, build a process, secure supplier data and model financial exposure. We assist importers and trading companies with practical trade compliance and risk management: International Trade & Sanctions.

Responsible lawyers: Liene Krumina and Oscari Seppälä.

EU Customs Reform Update: €3 Duty for Parcels Under €150 From 1 July 2026 (IOSS)

EU Customs Reform Update: €3 Duty for Parcels Under €150 From 1 July 2026 (IOSS)

Published: 14 Jan 2026  |  Update following the Council’s agreed transitional solution

The EU has agreed a fixed €3 customs duty for low-value parcels (≤ €150) entering the EU from 1 July 2026. The change is highly relevant for e-commerce flows and IOSS-registered sellers.

This update complements our earlier insight on the broader timeline and readiness actions for businesses.

What changes on 1 July 2026?

From 1 July 2026, goods imported into the EU in consignments valued at up to €150 will be subject to a fixed €3 customs duty. In practice, this marks a material shift for low-value imports, including typical e-commerce consumer goods, where customs cost was previously often avoided.

Key point: Low-value parcels (≤ €150) will no longer be treated as effectively “duty-free”. A €3 transitional duty applies from 1 July 2026, primarily targeting IOSS e-commerce flows.

Why is the EU introducing this duty?

The measure addresses unfair competition for EU sellers, systematic undervaluation and fraud, consumer safety concerns, and environmental impacts driven by shipment splitting and high parcel volumes.

What is IOSS (Import One-Stop Shop)?

IOSS is the EU’s special VAT scheme for distance sales of imported goods. It enables non-EU sellers (and platforms/intermediaries) to:

• collect VAT at the point of sale (checkout),
• simplify VAT reporting through a single registration,
• reduce delivery-stage surprises for consumers.

Important update: From 1 July 2026, IOSS shipments are not exempt from customs duty. For parcels ≤ €150 linked to IOSS-registered sellers, the fixed €3 duty will apply.

What should businesses do now?

• Update pricing and margin models to reflect the €3 duty and downstream cost allocation.
• Review shipment structures and whether splitting practices still make commercial sense.
• Strengthen product data governance (classification, valuation, audit trail).
• Monitor the 2026–2028 transition as the broader Data Hub reform advances.

Frequently asked questions

Does the €3 duty apply to all parcels under €150?

From 1 July 2026, the fixed €3 customs duty primarily applies to low-value consignments (≤ €150) linked to IOSS-registered non-EU sellers. In other ≤ €150 scenarios, standard tariff-based customs duties may apply.

What is IOSS in simple terms?

IOSS (Import One-Stop Shop) is the EU’s special VAT scheme for distance sales of imported goods. It typically allows VAT to be charged at checkout and reported via a single registration, simplifying import VAT handling.

Does the €3 duty change VAT rules?

Not by itself. Import VAT principles remain in place; this update concerns customs duty being levied more broadly on low-value imports.

Who pays the duty—seller, platform or buyer?

The commercial impact depends on the operating model (e.g., who acts as importer of record, contractual allocation of charges, Incoterms and pricing). Businesses should verify terms and cost pass-through logic.

Is this permanent?

No. This is a transitional measure pending the broader EU customs reform and the EU Customs Data Hub, which is intended to enable item-level customs assessment.

Need support?

LKOS Law Office supports businesses with customs and cross-border trade compliance and practical operating models. Meet our team: Our people, Oscari Seppälä and Liene Krumina.

Note: This update is general information and not legal advice for any specific case.

Mergers and Acquisitions in Finland: Legal Due Diligence, Deal Structuring and Closing Support

Mergers and Acquisitions in Finland: Legal Due Diligence, Deal Structuring and Closing Support

Published: 19 December 2025

A business-first guide to running an acquisition or sale with clear risk allocation, robust documentation, and efficient execution — for management teams, owners and in-house counsel operating in Finland and cross-border.

An M&A transaction is never “just a legal project”. It is a strategic business decision that requires reliable information, disciplined execution, and documentation that protects value after signing and closing. At LKOS Law Office, we advise buyers, sellers and investors in Finnish M&A and cross-border acquisitions, with a focus on pragmatic risk management and commercially workable solutions. For our full offering, see Mergers and Acquisitions.

When to involve an M&A lawyer in Finland

The most common value leakage in a deal happens early: unclear scope, incomplete information flow, and misaligned expectations on risk allocation. Engage counsel as soon as you are considering a transaction structure, especially if you need support with:

• Buy-side legal due diligence in Finland (corporate, contracts, employment, compliance, IP/data)
• Sell-side vendor due diligence and disclosure preparation
• Deal structuring: share purchase vs asset purchase, carve-outs, earn-outs and management incentives
• SPA/APA drafting, negotiation support and warranty/indemnity frameworks
• Closing mechanics: CPs, board/Shareholder approvals, filings, escrow and post-closing implementation

Legal due diligence that supports decision-making

Legal due diligence should not be a “data room report for its own sake”. A strong diligence workstream produces deal-relevant outputs: (i) a clear risk map, (ii) practical mitigation steps, and (iii) inputs to pricing and contract protections. We typically review (scope depends on the target and sector):

Core diligence workstreams

• Corporate & governance: ownership, decision-making authority, share classes, options, boards, consents
• Commercial contracts: change-of-control clauses, termination rights, key customer/supplier dependencies
• Employment & management: executive terms, incentives, non-competes, reorganisations and transfer-related obligations
• Compliance and regulatory: permits, sanctions/trade compliance touchpoints where relevant
• IP and data: ownership, licensing, material IT contracts, data protection risk areas

Deal documentation: making risk allocation enforceable

A high-performing SPA/APA clarifies who carries which risk, for how long, and how a breach is addressed in practice. We help clients negotiate and document:

• Warranties and disclosure (including disclosure letters and practical disclosure standards)
• Indemnities for identified risks and sector-specific exposures
• Limitations of liability (caps, baskets, de minimis, time limits, knowledge qualifiers)
• Closing conditions, interim operating covenants and purchase price adjustments
• Post-closing obligations and governance arrangements

Cross-border M&A in practice: coordination and execution

Cross-border deals require disciplined coordination: multiple advisors, multiple legal systems, and time-sensitive approvals. We operate as a transaction “control tower” on the legal side—keeping the process moving while ensuring documentation quality and alignment with the commercial timeline.

Reference highlight: refinancing and collateral arrangements (Signet Bank)

Transactions frequently include financing and security components that must match the business logic and the risk profile. As an example, we advised Signet Bank on refinancing and collateral arrangements. Read the case note (English):

• LKOS Law Office advised Signet Bank AS on refinancing and collateral arrangements

Why LKOS Law Office for M&A

Clients value three things in a transaction: speed without shortcuts, clarity on risk, and documentation that works in real life. Our approach combines legal precision with commercial judgement so management can make decisions with confidence.

Talk to our M&A team

If you are planning an acquisition, sale, investment round, or restructuring in Finland (or cross-border), we can support you from diligence to closing and post-closing implementation.

Explore: Mergers and Acquisitions
People: Our team | Oscari Seppälä | Liene Krumina

Contact: info(at)lkoslaw.fi
Office: Töölönkatu 4, 00100 Helsinki, Finland

EU Customs Reform 2026–2037: What Customs Changes Should Businesses Know?

EU Customs Reform 2026–2037: What Customs Changes Should Businesses Know?

Published 02.12.2025 | Expert: LKOS Law Office Oy

The ongoing EU customs reform is the most significant change to the EU customs system in more than 50 years. The changes are no longer a distant prospect – the first wave will enter into force already in 2026, and will immediately affect companies’ costs, customs clearance processes and pricing towards customers.

In this article, we explain in clear terms:

• which customs changes are planned in Finland
• what will change at EU level (especially for e-commerce customs clearance)
• the timeline 2026 → 2028 → 2033 → 2037
• concrete case examples for companies
• how your business should start preparing now

1. National changes in Finland: electronic service of decisions and a new operating model (from 2026)

At the beginning of 2026, several national changes will enter into force in Finland in connection with the EU reform.

1.1 Electronic service as the primary method (Customs Act section 61)

Customs decisions will in future be deemed served as soon as they are available in the electronic system.

This means for companies that:

• time limits for appeals and requests for review start to run immediately
• electronic monitoring of decisions can no longer be neglected
• internal processes and responsibilities must be updated to reflect the new method of service – this is a critical customs change in Finland.

1.2 Organisational reform: clearer management within Customs

The statutory unit structure of Finnish Customs will be removed and the internal organisation will in future be defined in the rules of procedure. This enables:

• faster reaction to EU customs reforms
• more centralised, risk-based supervision
• closer cooperation with the police, Security Intelligence Service and Border Guard

2. EU-level customs changes: towards a digital and centralised customs system

The EU aims to harmonise customs procedures and to build a common data infrastructure for the entire union. The change will take place in three waves.

2.1 First wave in 2026: e-commerce customs clearance and new rules

Removal of the €150 de minimis relief

From 2026, the de minimis rule (< €150 customs-duty exemption) will be removed. In practice this means that:

• customs duties will be levied on all consignments, including goods worth less than €150
• a new handling fee for e-commerce customs clearance will be introduced already in November 2026

The objectives are to stop undervaluation of low-value goods, reduce abuse of the system and ensure a level playing field for European businesses.

Case example 1 – Consumer e-commerce (rising customs costs)

A company imports spare parts worth €9.90 from Asia. Until now, the consignments have been exempt from customs duty. From 2026 onwards:

• customs duty will be charged on the consignment
• in addition, an e-commerce handling fee will be levied

Without updating pricing models or restructuring the supply chain, this model will no longer be cost-effective.

2.2 Second wave in 2028: EU Customs Agency and new basic structures

In 2028, a new EU Customs Agency will be established. It will start risk-based supervision at EU level.

This will result in:

• more uniform interpretation throughout the EU
• more centralised checks and supervision
• a gradual move away from purely national, parallel systems

2.3 Third wave 2032–2037: the EU Customs Data Hub changes everything

The EU Customs Data Hub is planned to open in 2032 and will become mandatory for large operators in 2033. By 2037, its use will be mandatory for all.

The main objectives of the Hub are:

• companies will enter customs data only once (“once only” principle)
• the EU will perform centralised risk analysis, making use of AI
• authorities will share information in real time
• product compliance can be checked at the border largely automatically

Case example 2 – Industrial company (benefits of the Data Hub)

An industrial company imports components worth €120 from China. Under the current system, the same product data must be provided repeatedly in different systems and in different customs declarations.

From 2033 onwards, the company could:

• enter product data once into the EU Customs Data Hub
• reuse the same data for all subsequent consignments
• avoid multiple, partially overlapping customs clearance steps

The end result is lower costs and faster throughput – on the condition that master data and classifications have been set up correctly.

3. The timeline – the entire customs reform at a glance

• 2026: removal of the < €150 de minimis relief, new e-commerce handling fee, electronic service of decisions in Finland
• 2028: EU Customs Agency starts operations
• 2032–2033: EU Customs Data Hub opens, mandatory for large operators
• 2037: Data Hub becomes mandatory for all operators

4. How should companies prepare for these customs changes?

The short answer: start now – 2026 is not far away.

Companies should:

• update pricing models to reflect the 2026 customs duties and handling fees
• reassess the profitability of their e-commerce business under the new cost structure
• ensure there is a robust process and clear responsibilities for monitoring electronic customs decisions
• document valuation and tariff classification of products carefully
• prepare for Data Hub requirements (strong master data, product records, origin data and compliance information)

If you would like support in assessing the impact of these customs changes or in developing your processes, you can read more on our service page: LKOS Law Office – Customs and international trade.

5. Summary – change is not a threat but an opportunity

The EU customs reform is a major change but also a historic opportunity.

• Compliant operators benefit from clearer and more consistent supervision
• Customs processes will become faster as they increasingly rely on data and analytics
• Companies that start preparing early can strengthen their competitiveness

2026 is just around the corner – preparation should begin today.

KKO 2025:99 – Tachograph exemption for forestry contracting clarified | LKOS Law Office

KKO 2025:99 – Finnish Supreme Court clarifies tachograph exemption in forestry transport

On 20 November 2025, the Finnish Supreme Court issued a precedent, KKO 2025:99, clarifying when a forestry contracting company may operate a truck without a tachograph under EU road transport social legislation. The decision is highly relevant for forestry contractors, transport and logistics companies, and employers responsible for drivers’ working time, tachograph compliance and safety obligations.

1. Background – what was the case about?

A was driving a truck owned by B Oy, transporting a forest harvester less than 100 km from the company’s place of business to a logging site. No tachograph was installed or used in the vehicle. The prosecutor argued that the transport fell under the tachograph requirement and that A had breached EU road transport social rules.

The lower courts considered that B Oy was not a forestry undertaking for the purposes of the national exemption, because it did not own forest land, but provided contracting services to third parties. Therefore, the exemption from tachograph use was considered inapplicable.

2. Supreme Court: forestry contracting is forestry activity

The Supreme Court overturned the lower courts and dismissed the charges. The Court held that:

• forestry includes both growing trees and harvesting them
• logging is part of forestry regardless of forest ownership
• a forestry contracting company (such as B Oy) is therefore a forestry undertaking under the exemption

The interpretation was aligned with Regulation (EC) No 561/2006 (driving and rest time rules), Regulation (EU) No 165/2014 (tachographs), and the CJEU’s case law requiring exemptions to be applied consistently and narrowly.

3. Own business operations – when does the exemption apply?

The Court also assessed whether the transport was part of B Oy’s own business operations. The Court noted that:

• the transport’s sole purpose was to move machinery used in the company’s own logging work
• the transport was secondary and necessary to the main forestry activity
• there is no separate competitive market for such movements of specialised forestry machinery

Accordingly, the vehicle was used in the company’s own forestry business. As the other requirements (including the 100 km radius) were met, the truck was exempt from the tachograph requirement.

4. What does this mean for businesses?

This ruling has practical implications for:

• Forestry contracting and harvesting companies – clearer guidance on tachograph exemptions and compliance.
• Transport and logistics operators – improved predictability regarding EU social legislation in road transport.
• Employers and fleet managers – reduced risk of criminal liability for tachograph or driving time errors.
• Insurance and liability assessments – more certainty when tachograph use (or non-use) affects responsibility.

This decision complements an already complex regulatory framework governing heavy vehicle operations, tachographs, working time, driver fatigue, accident prevention and road safety. Businesses should ensure their transport arrangements, contracts, internal guidelines and compliance processes fully reflect current law.

To learn more about how EU transport rules and tachograph obligations apply to your operations, explore our logistics, transport and maritime law services.

Need support with tachograph regulation and transport compliance?

LKOS Law Office advises companies on EU road transport social legislation, national transport law, tachograph requirements, driving time rules, and practical compliance management across forestry contracting, logistics and heavy transport operations.

Contact our experts for tailored advice: Contact LKOS Law Office – Transport & Logistics Law Specialists.

Frequently Asked Questions

What did the Supreme Court clarify in KKO 2025:99?
The Court held that forestry contracting is considered forestry activity, meaning companies engaged in logging may fall under the tachograph exemption if other legal criteria are met.

When can a company apply the tachograph exemption?
A company may apply the exemption when transporting machinery for its own forestry operations within a 100 km radius, and when the transport is secondary to its main activity.

How does the ruling affect Finnish logistics and forestry companies?
The decision increases legal clarity, reduces compliance risks, and supports predictable planning for companies moving forestry machinery.

Additional keywords for relevance: tachograph rules, driving time compliance, EU Regulation 561/2006, transport law Finland, forestry logistics, heavy transport compliance, LKOS Law Office transport law specialists.

The EU AI Act: Legal Compliance, Risks & Strategic Guidance for Businesses

Why the EU AI Act Matters for All Companies

The EU Artificial Intelligence Act is the first major regulatory framework for AI—and its impact will extend far beyond the tech sector...

Business Risks of Non-Compliance with the EU AI Act

Under the EU AI Act, companies face serious consequences if they fail to meet compliance obligations:

• Fines of up to €35 million or 7% of global annual turnover
• Suspension of AI systems
• Legal claims from customers or employees
• Reputational damage
• Loss of trust among partners, suppliers, and investors

Practical Compliance Strategies for Businesses

To reduce risk and ensure readiness, companies should:

• Map current AI use across operations
• Review all third-party AI systems
• Update contracts with AI clauses
• Train legal, procurement, IT
• Establish internal AI policies

AI Compliance Clauses: A Must-Have in Contracts

✅ AI Compliance Warranties

• Vendor confirms EU AI Act compliance
• Risk assessments conducted
• Prohibited practices excluded

✅ Audit and Transparency Rights

• Documentation access
• Regular audits
• Explanation of AI decisions

✅ Liability Provisions

• Vendor assumes liability for non-compliance
• Indemnification clauses
• Immediate termination rights

What Boards Should Discuss About AI Risk and Governance

Boards must take an active role in AI oversight. Key questions include...

Conclusion: Turning Compliance Into Competitive Advantage

AI can transform your business—but only if used responsibly and compliantly...

📩 Need support drafting AI-compliant contracts and safeguarding your business?
Our legal team at LKOS Law Office is here to help you navigate the EU AI Act and embed compliance into every agreement.

👉 Contact us today to ensure your contracts protect—not expose—your business, and learn more about our ESG, AI governance & compliance services.

Green Transition Strategies for SMEs | ESG & Sustainability in Practice | LKOS Law Office

Green Transition Strategies for SMEs: Transforming Business for a Better Tomorrow

Sustainability has become a popular topic, which is a good thing. However, I have come across ideas and comments that sustainability primarily concerns large corporations due to legislation as well as perceived high costs associated with it. In my view, this perception is outdated. Sustainability is equally relevant for SMEs and their competitive advantage. To lighten the overwhelming feeling caused by the myriad of legal regulations, standards, recommendations, and initiatives, there are a few practical steps that every company, regardless of size, can and should take.

If you want to turn ESG and sustainability into a strategic advantage for your company, you can also explore our ESG & Sustainability services.

Consumer demand

In an era where social media amplifies consumer voices, businesses are increasingly held accountable for their actions. Particularly among the younger generations, there is a growing emphasis on sustainability. Consumers are more informed and vocal about their preferences, often demanding companies to adopt sustainable practices. This shift in consumer behaviour makes it crucial for businesses to adapt in order to maintain their market relevance and customer base.

Beyond financial motives, there’s a growing recognition of corporate responsibility towards society and the environment. Ethical business practices resonate with consumers, employees, and stakeholders.

Regulatory compliance

The European Union, as an example, has been at the forefront of drafting and enforcing regulations that mandate businesses to be more sustainable and planet-friendly. The EU’s Circular Economy Action Plan is a notable initiative. It aims to transition from a linear to a circular economy, focusing on product lifecycle, design, circular processes, sustainable consumption, and waste prevention.

In addition, on 5 January 2023, the Corporate Sustainability Reporting Directive (CSRD) entered into force. This directive modernises and strengthens the rules concerning the social and environmental information that companies have to report. A broader set of large companies, as well as listed SMEs, will now be required to report on sustainability.

Cost savings

Sustainability often leads to rethinking and improving business processes, particularly in reducing waste, which directly translates to cost savings. Additionally, focusing on employee health and safety can reduce absenteeism and increase productivity, further cutting costs.

Large investors, including massive pension funds, are increasingly focusing on sustainability. Sustainable businesses often enjoy better long-term financial performance and may have more favourable access to financing. In addition, the shift towards sustainable finance is important to keep in mind.

Brand reputation and trust

Sustainable practices enhance a company’s reputation and build trust with consumers, investors, and partners. It reflects a commitment to ethical standards and social responsibility.

A sustainable supply chain is not only cost-effective but also essential for maintaining the integrity and reputation of the business. It ensures the business model is resilient and adaptable to future challenges.

Risk management

The adage “No planet – no business” encapsulates the existential risk of ignoring sustainability. Businesses that neglect environmental impacts may face substantial future risks, including resource scarcity and regulatory penalties.

Sustainable practices are often aligned with long-term business viability. They help ensure that businesses can thrive in a changing world, where resource constraints and environmental considerations are increasingly paramount.

Competitive advantage

Integrating sustainability into the core business strategy can be a source of innovation and competitive advantage. It encourages rethinking products, services, and processes, leading to new business opportunities.

Sustainability presents new market opportunities. By embracing sustainable practices, businesses can tap into new consumer segments and create innovative products and services.

Frequently Asked Questions

Why is sustainability important for SMEs?
Sustainability strengthens competitiveness, improves brand reputation, reduces costs, and meets growing consumer and investor expectations.

Are SMEs affected by EU sustainability regulations?
Yes. Many SMEs are indirectly affected through supply chains, financing requirements, and increasing expectations from customers and partners.

How can SMEs begin their sustainability transition?
SMEs can start by improving resource efficiency, reviewing supply chains, adopting ESG policies, and preparing for upcoming EU reporting expectations.

Explore our ESG & Sustainability services

Schedule a meeting

Our Partner Speaking at Technology 2025 | Turning Regulation into Opportunity

Our Partner Speaking at Technology 2025 | Turning Regulation into Opportunity

Technology 2025 – The Leading Nordic Technology and Industry Event

LKOS Law Office Partner Oscari Seppälä has been invited to speak at Technology 2025, the leading Nordic technology and industry event. His presentation explores how increasing regulation can be turned into an opportunity for technology companies.

LKOS Law Office Partner to Speak on the Opportunities in Regulation

Regulation is increasing rapidly – but could it also be an opportunity for technology companies? LKOS Law Office Partner [Name] will address this question as a speaker at Technology 2025, held at Helsinki Expo and Convention Centre on 6 November 2025, 13:20–13:50.

Regulation as a Competitive Advantage

His presentation, “Increasing Regulation and Market Expectations – Can They Also Be an Opportunity for Technology Companies?”, explores how compliance can drive competitiveness and sustainable growth rather than merely impose obligations.

Technology 2025 is the leading Nordic technology and industry event, bringing together experts, companies, and decision-makers for three days (4–6 November 2025). The event showcases the latest innovations in smart and sustainable industry – from automation and digitalisation to quantum technology.

Join the Discussion at Technology 2025

📅 Mark your calendar and join the discussion on how regulation can be transformed into an advantage.

👉 Read more about the event: https://lnkd.in/dJt_QCb8

Public Consultation: Regulatory Measures to Improve the Operating Conditions in the Transport Sector

Public Consultation: Regulatory Measures to Improve the Transport Sector

The Ministry of Transport and Communications of Finland invites comments on a draft government proposal to amend the Act on Transport Services and several related acts.
The aim of the proposal is to improve the operating conditions of the transport sector and to promote the use of low-emission, alternatively powered vehicles.
Comments can be submitted until 19 November 2025.

The draft proposal refines the EU cabotage rules to make their implementation and supervision clearer and introduces national measures to facilitate the transition to cleaner transport technologies. The Ministry has previously, in spring 2025, assessed various regulatory measures that could strengthen the competitiveness and sustainability of the Finnish transport sector — this consultation now presents the concrete steps.

Key Proposed Changes

1) Clarification of Cabotage Rules (Section 23, Act on Transport Services)

• For freight transport, one cabotage journey may include:
1. one loading and one unloading location;
2. multiple loading points and one unloading point (final consignee as per waybill); or
3. one loading point and multiple unloading points (same sender as per waybill).
• For bus transport, cabotage would be allowed for up to seven consecutive days within a 30-day period.

Impact:
These clarifications harmonize Finnish law with other Nordic countries, ensuring consistent business practices and more effective roadside checks. The reform will improve legal certainty and operational predictability for companies and transport service purchasers

2) Administrative Penalties for Violations

• €5,000 for a cabotage violation.
• €3,000 for failing to obtain a required driver attestation.
  Penalties may be imposed on both natural and legal persons, with enforcement handled by the Legal Register Centre.

Impact:
A swift and proportionate penalty system will enhance compliance, curb undeclared work and unfair competition, and reduce the burden on criminal courts. Clear rules also strengthen oversight and equality between domestic and foreign operators.

3) Driving Rights for Vehicles Using Alternative Fuels

• Holders of a B licence (car licence valid ≥ 2 years) could drive alternatively powered vehicles up to 4,250 kg total weight.
• Holders of a BE licence (valid ≥ 2 years) could drive combinations where the alternatively powered towing vehicle weighs up to 4,250 kg.
• Alternative fuels include electricity, hydrogen, CNG/LNG (including biomethane), LPG, and mechanical energy from vehicle systems.

Impact:
The change encourages companies to adopt low-emission vehicles earlier, improves driver availability, and supports Finland’s climate targets. Safety impacts are minimal, as the vehicles covered are subject to modern EU safety standards.

4) Driving Test Examiners – Easier Qualification and Better Availability

• The duty to conduct oral theory tests would be removed from the examiner’s role.
• Qualification requirements would be simplified: a valid driving instructor’s licence and a relevant training module (“Acting as a Driving Test Examiner”) would suffice.

Impact:
The reform would free up examiner capacity equivalent to approximately 12,000 additional driving tests per year, improving availability during peak seasons and ensuring smoother service nationwide.

Why It Matters for Businesses

• Clarity and predictability: Clear cabotage rules reduce interpretation disputes and inspection delays.
• Fair competition: Administrative penalties ensure a level playing field and reduce undeclared labour.
• Sustainability: Broader B/BE licence scope accelerates the shift to electric and low-emission fleets.
• Labour availability: More flexible driver qualification supports logistics continuity and national preparedness.

Invitation to Comment

The Ministry welcomes input from companies, industry associations, authorities, and other stakeholders. Feedback will help ensure that the new regulation is clear, proportionate, and effective in practice.
Deadline for comments: 19 November 2025.

How the New EU-US Tariff Deal Impacts Business

How the New EU-US Tariff Deal Impacts Business

Summary

On 27 July 2025, the EU and the United States announced a preliminary agreement that brings long-awaited relief and opportunity to transatlantic trade. The deal reduces steep U.S. tariffs on EU goods, expands EU market access for selected U.S. exports, and paves the way for increased investment and regulatory cooperation.

But for businesses, this isn’t just political news it’s a call to action.

What Businesses Must Know

U.S. Tariffs on EU Goods Drop to 15%
Most EU-manufactured goods, including cars and car parts, will now face a single capped tariff of 15% in the U.S., reduced from the initially proposed 30%. This offers immediate cost savings and pricing predictability.

Steel and Aluminum Still Face High Tariffs
EU exports of steel and aluminum remain subject to a 50% tariff, though new tariff-rate quotas (TRQs) aim to protect historical trade volumes.

New Opportunities in Energy and Tech
The EU has committed to large-scale purchases of U.S. energy products and AI chips, signalling major investment flows. Finnish companies in related sectors should evaluate export and partnership opportunities.

Improved Access for U.S. Goods to the EU
The EU will reduce tariffs for select U.S. agricultural and industrial goods under new TRQs, while maintaining protection for sensitive sectors such as beef and poultry.

Reduced Non-Tariff Barriers & Regulatory Cooperation
Enhanced alignment of standards and conformity assessments will facilitate trade in sectors such as automotive, pharmaceuticals, and tech.

How This Affects Finnish Businesses

Exporters should reassess U.S. pricing models, trade agreements, and supply chains in light of reduced tariffs and regulatory clarity.

Investors may benefit from a favourable investment climate in the U.S., with EU companies planning over €550 billion in fresh investment by 2029.

Importers and manufacturers in Finland sourcing U.S. goods from tech to raw materials should re-evaluate duties and ensure compliance with TRQs.

Risk Management Alert: The agreement is political, not yet legally binding. Companies must stay alert as negotiations and implementation evolve. 

What Is Recommended To Do Now

1. Review your trade contracts and pricing structures
   
2. Reassess supply chain strategies with U.S. partners
   
3. Explore new growth avenues in transatlantic markets
   
4. Ensure ongoing compliance with evolving EU and U.S. regulations
   

Need help navigating these changes?

Our legal team supports businesses in international trade, cross-border contracts, and sanctions compliance. Contact us for further information.

Partner Oscari Seppälä Interviewed by Dow Jones News on Finland’s Sanctions Enforcement

Partner Oscari Seppälä Interviewed by Dow Jones News on Finland’s Sanctions Enforcement

We are proud to share that Oscari Seppälä, Partner at LKOS Law Office, was interviewed by Dow Jones Risk Journal for a feature article discussing Finland’s role as one of the EU’s most active enforcers of sanctions following Russia’s invasion of Ukraine.

The article, titled “Finland Probes Sanctioned Exports to Russia,” highlights Finland’s proactive legal and institutional approach in monitoring and prosecuting export-related sanctions violations.

Legal Expertise Recognised Internationally

In the article, Oscari offers expert commentary on how Finnish criminal law enables personal and corporate liability in sanctions cases, even when complex company structures are used to conceal unlawful exports.

“Finnish criminal law allows for individual criminal liability even when a corporate structure is used. If a person directs or controls a company in a manner that enables or conceals the offense, they may be held personally liable regardless of corporate separation,” Oscari explains.

He also outlines recent amendments to Finland’s Criminal Code introducing corporate criminal liability for sanctions violations, with companies facing fines of up to 5% of turnover or €40 million.

Finland’s Leading Role in Sanctions Enforcement

The article discusses how Finland’s geographic location, longstanding trade ties with Russia, and automated customs control systems have made it a central player in EU sanctions enforcement. Authorities have launched nearly 1,000 criminal investigations into sanctions breaches, many of which involve attempts to circumvent EU sanctions via Central Asia.

This includes suspicious export patterns such as 257 EU-based companies with no prior Central Asian trade history using Finland for clearance triggering red flags for enforcement authorities.

Why It Matters to Our Clients

This feature highlights not only Finland’s increasing scrutiny of international trade flows, but also LKOS Law Office’s position as a trusted legal advisor in complex sanctions, export control, and cross-border trade matters. Our deep understanding of EU and Finnish regulation combined with practical experience means we are well-placed to support companies facing increasing compliance demands.

Whether you require legal risk assessments, export licensing advice, or representation in enforcement matters, our team is here to help you stay compliant and protected.

Learn More

🔗 The full article is available to Risk Journal subscribers here: LINK TO THE ARTICLE
📞 Contact us today to discuss how we can help your business navigate sanctions and export control regulations.

Sanctions Enforcement and Compliance in Finland | What Businesses Need to Know

Finland’s Strong Position on Sanctions Enforcement

Since the outbreak of the war in Ukraine, Finland has emerged as one of the EU’s most active enforcers of sanctions legislation. Authorities have launched nearly a thousand criminal investigations related to sanctions violations, with close to a hundred convictions—placing Finland among the leading EU countries in terms of enforcement activity.

This assertiveness is not due to more extensive legal powers than elsewhere in the EU. Instead, it reflects Finland’s unique geographic and institutional context: as Russia’s direct neighbour and a long-standing trade partner, Finland has developed extensive experience in managing cross-border trade risks, including customs fraud, tax evasion, and now, sanctions circumvention.

Customs Capabilities and Red Flags in Trade with Central Asia

One enforcement priority is the increasing use of Central Asian countries as transshipment points. Finnish Customs has publicly warned that companies should not be naïve about the true end-use of goods exported to countries such as Kazakhstan and Kyrgyzstan. For example, in early 2023, 257 EU-registered companies, none with a previous export history to Central Asia, used Finland for export clearances, prompting investigations.

Authorities rely on comprehensive evidence: customs records, transport documentation, falsified or manipulated paperwork, and cooperation with foreign customs. International intelligence and logistics data help trace onward movements of goods, especially when rerouted to Russia.

Legal Consequences for Individuals and Companies

Under Finnish law, aggravated sanctions violations (FI: törkeä pakoterikos) carry penalties ranging from four months to five years of imprisonment. Finnish legislation permits individual criminal liability even when a company structure is used. If a person directs or controls a company in a way that facilitates or conceals the offense, they may be held personally accountable regardless of corporate separation.

In 2025, Finland amended its Criminal Code to introduce corporate liability for sanctions violations and other trade-related offenses. Companies can now face fines of up to 5% of annual turnover, with a minimum of €850,000 and a maximum of €40 million.

How LKOS Law Office Supports Your Business

At LKOS Law Office, we help companies navigate the complex and rapidly evolving field of EU sanctions and export control compliance. Our services include:

• Risk assessments and compliance reviews

• Advice on dual-use goods and licensing obligations

• Drafting internal policies and due diligence procedures

• Representation in enforcement or criminal proceedings

• Strategic consultation on trade structuring and supply chain integrity

We understand that sanctions compliance is not just a legal issue—it’s a strategic business concern. Our practical, business-minded approach ensures that your company meets legal obligations without compromising operational efficiency.

Contact Our Sanctions & Trade Law Experts

If your business is engaged in cross-border trade, manufacturing, or logistics, you face potential exposure to sanctions risks. Our team is here to help you stay compliant, mitigate liability, and act decisively if issues arise.

📍 Contact LKOS Law Office to speak with one of our sanctions law experts.

Road Transport Cabotage Reform and Licensing Changes – 2026 Legislative Update

New regulations for road cabotage and transport sector in Finland – coming into force in 2026

In spring 2025, the Finnish Ministry of Transport and Communications launched a legislative project aiming to clarify cabotage transport regulations and improve the operating conditions of the transport sector. These changes align with the current government's goals to reduce unnecessary regulation and support entrepreneurship.

Key proposed changes

1. Clearer cabotage rules: The legislation aims to increase transparency for both businesses and enforcement authorities.
2. Penalty reform: Fines for unauthorised transport operations may be replaced by administrative fees.
3. Driving license reform: A category B driving license could permit driving up to 4,250 kg vehicles powered by alternative fuels, if held for at least two years.
4. Promotion of cleaner vehicles: The reform supports the use of low-emission vehicles, especially light trucks, in goods transport.

Why is the reform important?

As 90% of goods and people move by road in Finland, improving the legal framework for domestic road transport benefits the entire economy. The reform aims to enhance safety and reduce regulatory uncertainty for operators.

What happens next?

The legislative work continues with stakeholder consultations and a public hearing. The changes are expected to be finalised by June 2026, depending on the timeline for the new EU driving license directive.

Contact your expert at LKOS Law Office

Want to understand how the upcoming legislation may affect your business? Reach out to your legal expert at LKOS Law Office – we help ensure your operations remain compliant and future-proof.

LKOS Law Office Advised Signet Bank AS on Refinancing and Collateral Arrangements

LKOS Law Office Advised Signet Bank AS on EUR 5 Million Refinancing and Collateral Arrangement

LKOS Law Office advised Signet Bank AS on the Finnish law aspects of its EUR 5 million refinancing loan facility and related collateral package.

About Signet Bank

Signet Bank is Latvia’s leading investment bank, founded in 1991 as one of the first financial institutions in independent Latvia. The bank provides sustainable financing and investment solutions to Baltic-region entrepreneurs. Since 2021, Signet Bank has raised over EUR 500 million for more than 40 Latvian companies through bond and equity issues. As of 2024, the bank manages EUR 1.6 billion in client assets, making it the leading arranger of corporate securities offerings in Latvia and one of the strongest stockbrokers in the Baltics.

Our Role

Signet Bank sought our support in connection with a refinancing arrangement involving cross-border security. Our mandate focused on ensuring that the collateral structure complied with Finnish security, guarantee and transaction formalities—clearly, efficiently and without unnecessary complexity.

Working closely with the client, our team advised on the legal framework for Finnish-law security, helped structure and implement the collateral package, and coordinated the practical steps required for smooth execution.

This engagement reflects the type of work we do best: enabling clients to move forward with clarity and confidence, supported by legal advice that is both technically sound and pragmatically delivered.

Background on Shareholders

Signet Bank’s shareholders include eighteen Latvian and international private investors. The largest shareholders are:

• Signet Acquisition III (sole shareholder: U.S. investor Aleksandrs Solovejs)
• AS RIT Group (owned by the Rapoport family)
• SIA Reglink (founded by banking professional Irīna Pīgozne)

For more information on our services, explore: Contracts & Commercial Law and Corporate Finance & M&A.

Frequently Asked Questions

What was LKOS Law Office’s role in the Signet Bank refinancing?

LKOS advised on Finnish-law security, guarantees, and transaction formalities for a EUR 5 million refinancing loan facility, ensuring the collateral structure complied with local requirements.

Who is Signet Bank AS?

Signet Bank is Latvia’s leading investment bank, providing sustainable financing solutions and managing EUR 1.6 billion in client assets.

Why is Finnish-law security important in cross-border finance?

When collateral is located in Finland, lenders must comply with Finnish security and guarantee legislation to ensure enforceability and mitigate transactional risk.

LKOS Law Office at the 14th Baltic Arbitration Days 2025

Partner Liene Krumina from LKOS Law Office will be participating in the 14th Baltic Arbitration Days, taking place on 15–16 June 2025 in Riga and Jurmala.

Baltic Arbitration Days brings together arbitration practitioners, academics, and experts from across the globe to discuss key developments in international commercial and investment arbitration, with a particular focus on Central and Eastern Europe. Over two days of lectures, discussions, and networking, participants will have the opportunity to exchange knowledge and insights on some of the most current topics shaping the arbitration landscape.

We are looking forward to interesting discussions, new ideas, and meeting colleagues from around the world.

See you in Riga and Jurmala!

The LKOS Law Office Team

New Electricity Market Act 2025 – Key Changes and Impacts | LKOS Law Office

The New Electricity Market Act 2025 – Key Changes and Impacts

A major reform is coming to Finland's electricity market with the new Electricity Market Act, scheduled to enter into force in autumn 2025. The purpose of this reform is to increase market flexibility, clarify pricing models, and improve the utilisation of the electricity grid. This article presents the key changes and compares them with the current legislation.

1. Why is the Electricity Market Act being reformed?

The reform is driven by the implementation of EU directives and the Finnish Government’s objective to modernise the electricity system. The primary goals are to promote a smart electricity system, enhance customer participation, and bring energy production and consumption geographically closer together.

2. Key changes in the Electricity Market Act 2025

2.1 Construction and ownership of networks above 110 kV

The reform will allow distribution network companies to build and own local networks above 110 kV. Previously, this was only permitted for the transmission system operator (Fingrid). This change is intended to support the development of regional grid solutions and new investments.

2.2 Flexible use of connection lines

The new law introduces more flexible connection line arrangements for networks of at least 110 kV. The objective is to encourage electricity production and consumption to be located closer to each other and to improve the efficiency of the grid.

2.3 Integration of energy storage

The integration of energy storage facilities into connection lines will be allowed on a broader scale. This particularly supports the efficient use of renewable energy production and helps balance fluctuations in production and demand.

2.4 Power-based connection fees

Fingrid proposes that connection fees be converted to power-based fees. This would allocate costs more accurately to customers who create new investment needs for the grid and support more efficient use of network capacity.

2.5 Combined invoicing for customers

Customers will be offered voluntary combined invoicing, where electricity sales and distribution services are invoiced on a single bill. This simplifies billing, improves cost transparency and makes it easier for customers to understand their total electricity costs.

3. Impacts on businesses and consumers

3.1 Impacts on businesses

Companies will particularly benefit from power-based pricing, which allows for more accurate cost predictability and better alignment of network costs with actual usage. In addition, flexible connection options and the integration of energy storage open up new business opportunities in the energy sector, for example in local generation projects and flexibility services.

3.2 Impacts on consumers

Consumers’ position will improve through combined invoicing and increased opportunities for market-based load control. Customers will have better possibilities to influence their electricity costs by adjusting their consumption behaviour and by utilising smart solutions offered by electricity suppliers and distribution companies.

4. Comparison with current legislation

Compared with the current legal framework, the new Act significantly increases flexibility and clarifies cost allocation. In particular, the possibility for distribution network companies to construct networks above 110 kV and the shift to power-based connection fees represent major changes. The reform aims to encourage more efficient energy use, optimise location choices for production and consumption, and support the transition to a smarter electricity system.

5. Timeline and next steps

The legislative proposal will proceed to Parliament and the relevant committees in spring 2025. The legislative amendments are planned to enter into force between August and September 2025. Companies and other stakeholders should prepare for the changes in good time by reviewing their grid connection arrangements, pricing models and contractual framework.

6. Contact us to ensure your business is prepared

If you need further information about the Electricity Market Act reform or its implications for your business, contact our experts. LKOS Law Office’s specialists are ready to help you understand the changes, assess the legal risks and opportunities, and ensure that your company is fully prepared for the upcoming reforms.

Finland’s Co-operation Act reform enters into force July 2025 – key changes for employers

The Finnish Co-operation Act Will Be Revised in July 2025 – What Employers Need to Know

The amendments to Finland’s Co-operation Act will enter into force on 1 July 2025. The reform raises the applicability threshold and streamlines negotiation procedures. The objective is to reduce the administrative burden especially for smaller companies and to allow employers to respond more quickly to changes in their operating environment.

Applicability threshold raised – impact on companies with fewer than 50 employees

Currently, the Co-operation Act applies to employers with at least 20 employees. After the reform, the applicability threshold will increase to 50 employees.

However, companies employing fewer than 50 people will still have certain simplified obligations:

• Ongoing dialogue remains, but its procedures will be significantly simplified.

• Co-operation negotiations are required only when the employer considers measures affecting at least 20 employees within a 90-day period.

• Negotiations are not required for temporary layoffs (maximum 90 days) due to a temporary reduction in work.

• Provisions on business transfers, mergers, and demergers remain unchanged.

Duration of co-operation negotiations will be shortened

The minimum duration of negotiations related to workforce reductions will be halved:

• Current 6 weeks → 3 weeks

• Current 14 days → 7 days

The duration depends on company size and matters under discussion.

New deadline for labor authority notifications

If the employer plans to terminate at least 10 employees for economic or production-related reasons, the employer must:

• Submit a negotiation proposal to the labor authorities.

• Ensure that dismissals cannot take effect until 30 days have passed after submitting the proposal.

Changes to employee representation under preparation

The government has decided to lower the threshold for employee representation from companies with at least 150 employees to those with at least 100 employees. Representation must be arranged either at board or management team level. A tripartite working group is preparing the changes as part of the second phase of the reform.

Stay up to date with changing employment legislation

If you want to ensure that your company’s processes, negotiations, and HR practices comply with the new law — our experts are ready to assist you.

👉 Contact your advisor.

Planned changes to the statute of limitations for working hours and annual leave claims in Finland

Planned Changes to the Statute of Limitations for Claims on Working Hours and Annual Leave in Finland

A legislative reform may be coming to Finnish labor law, as a working group appointed by the Ministry of Justice is reviewing the statute of limitations for claims related to working hours and annual leave. The goal is to clarify the current legislation, where court practice has revealed conflicting interpretations, particularly regarding applicable limitation and filing periods.

Current statute of limitations for working hours and annual leave claims

The statute of limitations and filing deadlines for claims related to working hours and annual leave currently depend on whether the claim is based directly on the law or on a collective agreement.

• The Supreme Court of Finland (KKO) has ruled that the limitation period under the Working Hours Act also applies to claims based on collective agreements. This results in a shorter filing period.

• The Labour Court (TT), on the other hand, has ruled that for claims based on collective agreements, the longer limitation periods of the Employment Contracts Act apply.

Similar uncertainty exists for annual leave claims when the right to leave is based on a collective agreement. These conflicting rulings have created legal uncertainty for both employers and employees.

Ministry of Justice examines need for legislative clarification

Due to these differing interpretations, the Ministry of Justice has appointed a working group to assess whether the rules on limitation and filing periods should be clarified. The group's task is to prepare a possible legislative proposal that would bring greater clarity and predictability to the statute of limitations for working hours and annual leave claims.

Why are these changes significant?

Clear and unambiguous legislation would:

• Reduce uncertainty in the labor market

• Make dispute prevention easier

• Better safeguard the legal rights of both parties

• Decrease the number of court proceedings

As the working group's review progresses, it is important to closely monitor any legislative developments, as they directly affect employer practices and claim filing deadlines.

We will continue to follow the legislative process and keep our clients informed of any updates.

Do you need expert advice on employment law in Finland?

Our specialists are happy to assist you with questions related to working hours claims, annual leave claims, and contract practices.

👉 Contact your advisor.