SUPREME COURT FORWARDED CASE ON SELLING “PERM PORT” TO A FOREIGN INVESTOR FOR RECONSIDERATION

Thus, allowing a FAS claim

In 2017, FAS filed a lawsuit to invalidate several transactions executed in 2011 – 2015. In FAS opinion, they resulted in unlawful control of a foreign investor over “Perm Port” JSC that is of strategic importance for national defence and state security.

The transactions, as a result of which the foreign investor establishes control over the Russian strategic company [1], are subject to preliminary approval by the Government Commission on Foreign Investments in the Russian Federation.

“Evidence available to FAS shows that the foreign investor – a UK national –established control over “Port Perm” JSC as a result of several consecutive deals via persons controlled by the investor. These data formed the grounds for FAS filing a lawsuit to invalidate the transactions and apply the consequences of void transactions. It means that all transactions executed during the period of unlawful control also must be invalidated”, commented Head of FAS Department for Control over Foreign Investments, Olesya Milchakova.

Earlier the Court of First Instance, the Appeal Court and the Cassation Court dismissed the FAS claim.

On 9 April 2019, however, the Judicial Collegium on Economic Disputes of the Supreme Court of the Russian Federation agreed with the FAS position and forwarded the case for substantive reconsideration to Perm Regional Arbitration Court.

“The ruling of the Supreme Court helps protect national defence and state security in the course of foreign investments in Russian strategic companies.  When foreign investment are attracted to Russian economy, equal rights should be ensured to bona fide investors with absolute compliance with the norms of the current law”, emphasized Deputy Head of FAS Andrey Tsyganov.

[1] Under No.57-FZ Federal Law