OLESYA MILCHAKOVA: FEEDBACK FROM FOREIGN INVESTORS ALLOWS TO REVEAL ENFORCEMENT ISSUES

The Ministry of Justice of the Russian Federation registered FAS Regulations on explanations for applying the Law on foreign investments

The Administrative Regulations guarantees legal entities and physical persons, including foreign investors, official explanations by FAS on applying No. 57-FZ Federal Law within 30 days upon receiving a request*.

Head of FAS Department for Control over Foreign Investments, Olesya Milchakova commented: “No. 57-FZ Federal Law has been in force for already ten years. As the authorized body to control over its compliance, FAS has accumulated considerable enforcement experience. Explanations by the antimonopoly body will help ensure transparency and precision of legal standards regulating the procedure of foreign investors in Russian strategic companies. Moreover, feedback with market participants, including foreign investors, will help reveal legal issues and enforcement problems that we will solve by improving the law on foreign investments”.

The Ministry of Justice of the Russian Federationregistered a new version of FAS Regulations on considering enquiries about the need to approve transactions of foreign investors with regard to Russian economic entities of strategic importance for national defence and state security**.

The Regulations are designed to ensure the rights of foreign investors to obtain FAS position whether a particular transaction, planned by an investor, requires a pre-approval by the Government Commission for Control over Foreign Investments. The Regulations specifies in detail the timeframe and sequence of FAS actions for considering such enquiries.

* No. 1130/18 FAS Order “On approving the Administrative Regulations of the Federal Antimonopoly Service on providing the state service for giving explanations on enforcement of No. 57-FZ Federal Law “On the procedure for foreign investments in economic entities of strategic importance for national defence and state security” of 29 April 2008 by FAS” of 13.08.2018

** No. 1237/18 FAS Order “On approving the Administrative Regulations of the Federal Antimonopoly Service on providing the state service for considering enquiries on the need to approve transactions under Part 6 Article 8 of No. 57-FZ Federal Law “On the procedure for foreign investments in economic entities of strategic importance for national defence and state security” of 29 April 2008” of 30.08.2018