ANNOUNCEMENT 18 Dec 2011
In December 2011, the government of Russia increased the cap on foreign ownership/control not requiring government approval from 10% to 25% for companies developing federal subsoil resources.
NUMBER OF INTERVENTIONS
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)
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.