RUSSIAN PRESIDENT SIGNED LAWS DETAILING THE IMPLEMENTATION OF FOREIGN INVESTMENTS IN RUSSIAN COMPANIES

The regulations developed by FAS Russia are aimed at improving the procedure for foreign investments in strategically important sectors of the Russian economy

The first part of the amendments* establishes the algorithm of actions of foreign investors when acquiring assets of Russian companies, which at the moment do not require approval from the Government Commission for Control over Foreign Investments. It defines the list of criteria by which transactions can be submitted for consideration to the commission by the decision of its chairman.

Thanks to the new rules, a foreign investor will be able to determine whether a transaction needs to be approved and plan the timing of its approval.

The second law** introduces the procedure for approval with the legal commission of obtaining a license, certificate or other authorization document for the implementation of a strategic type of activity for those companies that are under the control of a foreign investor.

This document also provides for measures to suspend the validity of the permit document in case of violation of the imposed requirements.

In addition, the law approves the specifics of the procedure for obtaining the rights to extract water bio-resources by a company, which is under control of a foreign investor, and the termination of such a right obtained illegally.

The laws were adopted to balance interests between attracting foreign investment in the economy and preventing national security risks when making foreign investments in strategic sectors of the economy.

* 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 the Defense of the Country and state security" and certain legislative acts of the Russian Federation"