A CHINESE CITIZEN BOUGHT A STRATEGIC SUBSOIL USER WITHOUT GOVERNMENT COMMISSION APPROVAL

FAS established that “Jinin” acquired “Amur Copper” Ltd. in breach of the law on foreign investments

FAS Department for Control over Foreign Investments checked whether acquisition of 100% shares of “Amur Copper” Ltd. by “Jinin” (China) complied with No. 57-FZ Federal Law¹.

The only shareholder of “Jinin” is a citizen of China. The company is a foreign investor within the meaning of No. 57-FZ Federal Law.

“Amur Copper” Ltd. is involved in search and assessment of gold, copper and molybdenum deposits, including Ikanskoe deposit in the Amur region (a subsoil area of the federal status) and is a strategic subsoil user.

Head of FAS Department for Control over Foreign Investments, Olesya Milchakova said:  “Acquiring 25% and more of the registered capital of a strategic subsoil user by a private foreign investor is subject to a preapproval, The acquisition by “Jinin” took place without approving by the Government Commission, which is a violation of the Law on foreign investments. FAS has filed a claim to Amur Regional Arbitration Court to hold the deal with “Amur Copper” Ltd. void and apply the consequences”.

¹  No. 57-FZ Federal Law “On the procedure of foreign investments in economic entities of strategic importance for national defence and state security” of 29.04.2008