16-04-2018 | 16:25

Amendments to the model form of the Agreement on fulfilling obligations by foreign investors are adopted


On 11 April 2018, the Ministry of Justice of the Russian Federation registered No. 1637/17 FAS Order “On amendments to the model form ofthe Agreement on fulfilling obligations by foreign investors or a group of persons making foreign investments to economic entities of strategic importance approved by No. 357 FAS Order of 17.09.2008” of  04.12.2017.


When amendments specified in No. 165-FZ Federal Law is adopted, the Government Commission for control over foreign investments in the Russian Federation will not be limited by a close list of obligations that can be imposed upon a foreign investor performing transactions with regard to strategic economic entities.


Deputy Head of FAS Andrey Tsyganov pointed out: “Each transaction subject to preapproval under No. 57-FZ Federal Law is unique in its own way, small venture companies as well transnational corporations can be foreign investors. Therefore, the Government Commission must be able to become more flexible imposing obligations. For instance, if a hi-tech company approaches us, why not to share its know-how with a Russian strategic company, over which the company is establishing control, it will only benefit the investor’s business. The close list of obligations did not provide for such an opportunity. By the way, obligations are not impose frequently, roughly in 25% cases”.


Head of FAS Department for Control over Foreign Investments, Olesya Milchakova, commented: “Due to No. 165-FZ Federal Law coming into effect, the Department had to draft a lot of by-laws within short timeframes, designed to operationalize legislative novelties. In particular, mainstream FAS Order on the form of an Agreement concluded with a foreign investment. Thus, increasingly more normative legal acts are adjusted in line with the current edition of No. 57-FZ Federal Law”.


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