STATE DUMA IN THE FIRST READING ADOPTED DRAFT LAWS ON THE IMPLEMENTATION OF FOREIGN INVESTMENTS TO RUSSIAN COMPANIES
The adopted amendments are aimed at improving the existing procedure for foreign investment, including in strategically important sectors of the Russian economy
The first draft law* of FAS Russia establishes the algorithm of actions of foreign investors in relation to Russian economic entities. It defines a list of those entities, transactions in respect of which can be submitted for consideration by the Government Commission for Control of Foreign Investment in the Russian Federation by the decision of its Chairman.
The criteria introduced by the draft law will allow a foreign investor to determine where an application should be submitted and shorten the time for its consideration.
In accordance with the second draft law** of FAS Russia, for companies wishing to engage in a strategic type of activity, a procedure is being introduced for approval by the Government Commission the obtaining a license, certificate or other authorization document for the implementation of this type of activity.
This document also provides for measures to suspend the validity of the permit document in case of violation of the order.
One of the key objectives of the draft law is to prevent risks arising from foreign investments in economic entities.
* Draft of the Federal Law "On Amendments to Article 6 of the Federal Law "On Foreign Investments in the Russian Federation” and the Federal Law "On Protection of Competition"
** Draft of the Federal Law "On Amendments to the Federal Law "On the Procedure for Foreign Investments in Business Entities of Strategic Importance for Ensuring the Defence of the Country and State Security" and Certain Legislative Acts of the Russian Federation"