THE STATE DUMA AT FIRST READING ADOPTED AMENDMENT TO THE LAW ON THE PROCEDURE FOR MAKING FOREIGN INVESTMENT (57-FZ)

On December 23, 2020, Andrey Tsyganov, Deputy Head of the FAS Russia, presented the draft law at a plenary session of the State Duma of the Federal Assembly of the Russian Federation. During his speech, Andrey Tsyganov noted that amendments to the Law on the Procedure for Making Foreign Investments (57-FZ) are aimed at eliminating specific barriers to foreign investment in economic entities that operate in open, non-strategic areas of activity, but at the same time have insignificant volume of an asset that is recognized as strategic.

The changes will concern transactions that are made by foreign investors with companies whose activities are related to water supply or work with infectious agents. A simplified application procedure will be provided for such agreements.“The FAS Russia will make decisions on such transactions, taking into account the conclusions of the FSB of Russia and the Ministry of Defense of Russia, indicating that there is no threat to the country's defense and state security, as well as the conclusions of the Ministry of Economic Development of Russia, the Ministry of Construction of Russia and Rospotrebnadzor that there is no need to submit the transaction to the Government Commission for Monitoring foreign investment in the Russian Federation,” Andrey Tsyganov noted.