Global Trade Alert

On 17 December 2015 in Rossiyskaya Gazeta, an official newpaper of the Russian Government, was officially published Federal Law No. 372-FZ of 14 December 2015 ("the Law"). It amends Federal Law No. 395-FZ of 2 December 1990 'On banks and bank activities'. Concretely, it introduces new restrictions (art. 18 of the Law) for participation of non-resident (foreign) investors in the charter capital of Russian banks.
The amount of participation of foreign capital in the aggregate charter capital of credit organisations holding a banking license for business operations in Russia shall be annually calculated by the Central Bank of Russia as the ratio of:

1. foreign investments of non-residents in the charter capitals of licensed for operation in Russia credit organisations, and
2. their aggregate charter capital.

The maximum value of this ratio, referred to in the Law as "quota", is 50%. The purpose of this ratio is to ensure the monitoring of bank's capital increases. If the maximum value of the ratio is surpassed, the Central Bank of Russia rejects the the capital increase. However, from this restriction are excluded countries with whom the Russian Federation has signed relevant international agreements (for example, the OECD countries).