Russia has strengthened control over foreign investment

31.07.2020

Vladimir Putin has signed a Federal law that strengthens control over foreign investment in Russian companies from strategic industries.

After the law comes into force, all securities of this structure that a foreign investor has already purchased will be taken into account when considering transactions involving the purchase of shares of a company from strategic sectors. This rule will be applied even if the buyer is temporarily unable to dispose of them.

Thus, there should be no possibility of abuse by investors when temporarily transferring to other persons the right to directly or indirectly dispose of the voting shares of a strategic company. 

Strategic activities now include more than 40 types, including work in the nuclear sphere; development, production, repair, sale, and disposal of military equipment; space and aviation; exploration of the subsoil, mining.

 

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