Global Trade Alert

With Resolution Nr. 542 of April 8, 2013, the Prime Minister of the Russian Federation, Mr Dmitry Medvedev, submitted the Draft Law 255707-6 to the Federal Duma. According to Mr Medvedev, the legislative amendmentsare intended to attract and facilitate the business activities of foreign investors in state-owned enterprises in the area of national defence, safety and subsoil exploration. The main elements can be summarised as follows:
 

• abolishing the requirement for a foreign investor, owner of more than 50 per cent of the capital, to coordinate deals with respect to company shares in advance;
• for the subsoil exploration sector, the condition for exemption from a prior consent is a minimum ownership of 75 per cent of the capital of the enterprise;
• so called strategic enterprises, which are state-owned by at least 50 per cent, are excluded from these amendemnts.