OLESYA MILCHAKOVA: LEGAL UNCERTAINTY INFLUENCES FAVOURABLE INVESTMENT CLIMATE IN RUSSIA

13-05-2019 | 09:30

Ministry of Justice registered FAS Administrative Regulations on considering notifications from foreign investors regarding Russian strategic companies

 

No. 57-FZ Federal Law1 obligates foreign investors or group of persons with participation of foreign investors to notify FAS about acquiring five and more percentage of shares (stock) constituting the authorized capital of the companies of strategic importance of national defence and state security.

 

Head of FAS Department for Control over Foreign Investments, Olesya Milchakova, commented: “In this case the question is, first of all, about transactions that do not establish control of foreign investors over Russian strategic companies as well as completed transactions on acquiring control over strategic companies, decisions on preliminary approval of which was made by the Government Commission to control foreign investments in the Russian Federation”.

 

The Administrative Regulations2 establish the procedure for the officers of the antimonopoly body for acting upon receiving notifications from foreign investors and the deadlines for providing the state services on considering notifications. The Regulations also specify an exhaustive list of documents that must accompany notifications.

 

FAS provides the state service without any duty or other payment. The period of considering the notification is 30 days under the condition of providing the full package of the required documents.

 

Olesya Milchakova stated: “No. 57-FZ Federal Law provides for rather serious consequences for violating the procedure of notifying FAS about acquiring stock of shares of a Russian strategic company by a foreign investor – suspending the right to vote at a general shareholders meeting. In this context, an important task for us is detailed and comprehensive description of the rules for submitting notifications, because legal certainty for foreign investors directly influences favorable investment climate in Russia”.

 

No. 57-FZ Federal Law "On the procedures of foreign investors in economic entities of strategic importance for the national defence and state security" of 29.04.2008.

 

No.382/19 Order of the Federal Antimonopoly Service "On approving the Administrative Regulations of the Federal Antimonopoly Service for providing the state service for considering notifications on acquiring 5% or more of stock (shares) constituting the authorized capital of the economic entities of strategic importance for national defence and state security by foreign investors of a group of persons, comprising foreign investors, as well as completing transactions, other actions subject to preapproval" of 27.03.2019  (No.54532 Order registered on 26.04.2019)



Site Map

News & Events Press Releases Media Releases Image Library About the FAS Russia What We Do General Information Mission, Goals, Values Priority Setting Institutional Memory Stakeholders Engagement Center for Education and Methodics Our History Our Structure Powers of Head and Deputy Heads Our Ratings GCR Using our website International Cooperation Treaties & Agreements International Working Groups Working Group on Research of Competition Issues in the Market of International Telecommunications (Roaming) Meetings Working Group for Studying Competition Problems in the Pharmaceutical Sector Concept Note Meetings OECD Competition Committee OECD meetings 2013 OECD meetings 2014 OECD meetings 2015 OECD meetings 2016 OECD meetings 2017 OECD meetings 2018 FAS Annual Reports OECD-GVH RCC RCC Newsletter ICAP Council on Advertising Headquarters for Joint Investigations UNCTAD 13th session IGE UNCTAD Resolution Russian contributions 14th session IGE UNCTAD Resolution Russian contributions 15th session IGE UNCTAD 16th session IGE UNCTAD 17th session IGE UNCTAD EEU Model Law on Competition ICN BRICS WG (Markets of Social Importance) EU APEC Competition Policy and Law Group Annual meetings Projects ERRA Full Members Organizational Structure Archive Working Group on Investigating Issues on Pricing in the Oil and Oil Product Markets and Methods of their Functioning Meetings Document Library Legislation Reports & Analytics Cases & decisions Contacts Give feedback Contact us Links Authorities Worldwide