ANNOUNCEMENT 18 Dec 2011

In December 2011, the government of Russia announced changed rules for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Amendments to the Federal Law 'On Procedures for Foreign Investments in Entities Having Strategic Importance for Ensuring National Defence State Security' ( 57-FZ)

Amendments to the Federal Law 'On Foreign Investments in the Russian Federation' (160-FZ)


Inception date: 18 Dec 2011 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 18 December 2011, amendments to the Federal Law 'On Procedures for Foreign Investments in Entities Having Strategic Importance for Ensuring National Defence and State Security' ( 57-FZ) and 'On Foreign Investments in the Russian Federation' (160-FZ) came into effect. The changes broaden the scope of investments by foreigners in Russian strategic companies carrying out exploration and extraction of minerals; relax the limits on foreign investments in strategic industries.
The amendments lift the ceilings of foreign ownership in certain sectors, eliminate the requirement to obtain governmental approval for acquisitions of (direct or indirect) control of up to 25% of shares of companies that develop Federal subsoil resources (the previous limit was 10%), exempt international financial organisations in which Russia is a member from certain approval requirements, and strip companies in certain sectors from their status as 'strategic companies' for the purpose of the application of foreign investment rules.
 

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A