Russia amends the Law on Foreign Investment in Strategic Companies
The amended Law on Foreign Investment in Strategic Companies now also covers acquisitions of assets in "strategic" companies if the value of these assets exceeds 25 per cent of the total value of the company's assets. Such transactions now require prior approval by the Governmental Commission. Earlier, such approval was only required for acquisition of shares in "strategic" companies.
According to the amendments, a prior approval will also need to be obtained for those transactions that give a foreign investor the power to determine decisions of a strategic company's governing bodies. Reportedly, this is to cease the practice of circumventing the requirements of the law through, for example, shareholder agreements.
Also the list of strategic activities has been amended. Services rendered in ports in the territory of the Russian Federation have been added to the list (a specific list of such services is to be drawn up by the Government). One type of activity has been removed from the list - operations that involve the use of infectious disease agents, if such operations are performed by a company whose main business concerns manufacture of food products.
Type: Entry and establishment (Ownership and control)
Industry: Not industry specific, Manufacturing (Manufacture of food products, beverages and tobacco products), Services (Transportation and storage)
- Russian Gazette, Federal Law No.343-FZ of 4 November 2014, Nov 07, 2014