STATE DUMA ADOPTED IN THE THIRD READING FAS DRAFT LAWS ON THE IMPLEMENTATION OF FOREIGN INVESTMENTS IN RUSSIAN COMPANIES

The adopted amendments are aimed at improving the existing procedure for foreign investments, including in strategically important sectors of the Russian economy

The first draft law* of the authority 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 may be submitted for consideration by the Government Commission for Monitoring Foreign Investments in the Russian Federation by decision of its Chairman.

The criteria introduced by the draft law will allow a foreign investor to determine where a petition 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 activity, a procedure is introduced to coordinate with the Government Commission the obtaining a license, certificate or other authorization document for such 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 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 Federal Law "On Amendments to the Federal Law "On the Procedure for Foreign Investments in Business Entities of Strategic Importance for Ensuring National Defence and State Security" and Certain Legislative Acts of the Russian Federation"