THE PRESIDENT OF RUSSIA SIGNED A LAW AIMED AT PROMOTING THE DE-OFFSHORING OF THE RUSSIAN ECONOMY

Such provisions of the Federal Law* will be applied in the case when a foreign company owning assets in Russia enters Russian jurisdiction by re-registration in special administrative regions (SAR)** the ownership structure is changing and the owner of the company (a Russian citizen) loses control over it.

When restoring previously lost control, companies will not need to coordinate transactions within the framework of the Law on Protection of Competition under a combination of a number of conditions. We are talking about the presentation of information about the beneficial owner when registering in the SAR, as well as the implementation of transactions within 10 years from the date of this registration. In addition, these transactions should entail the establishment of the beneficiary's control to the same extent that existed previously.

In addition, now FAS will consider such transactions in accordance with the procedure provided for by the Law on Foreign Investment ***, according to a simplified procedure.

The law will increase the attractiveness of the Russian jurisdiction for Russian and foreign investors, shorten the terms of transactions and create additional incentives for the de-offshorization of the Russian economy.

* Federal Law №10-FZ of 02/16/2022 “On Amendments to Articles 28 and 29 of the Federal Law «On Protection of Competition” and the Federal Law “On the Procedure for Foreign Investments in Business Entities of Strategic Importance for Ensuring National Defense and State Security”

** On the territory of the Russian Federation in the Primorsky Territory (Russky Island) and the Kaliningrad Region (Oktyabrsky Island)

*** Federal Law № 57-FZ of 29.04.2008 “On the Procedure for Foreign Investments in Business Entities of Strategic Importance for Ensuring the Country's Defense and State Security”