Putin has simplified the re-registration of significant companies in Russia – Kommersant

On August 4, President Vladimir Putin signed a law that simplifies the transfer of economically significant companies to the jurisdiction of Russia. The law also allows exclusion through the courts from the possession of foreign participants from “unfriendly” countries.

Document published on the portal of legal information. The law is aimed at transferring Russian business to Russian jurisdiction, primarily in key and strategic industries, and restoring the rights of its Russian co-owners, said Sergey Gavrilov, head of the State Duma Committee on Property, Land and Property Relations.

According to the document, the beneficiaries of economically significant companies can apply to the court, for example, if the foreign owner decides to terminate his participation in the company or reduce more than a third of the employees. By a court decision, the company can be transformed into a public joint stock company, suspend the rights of foreign owners and distribute their shares among Russian owners. At the same time, Russians who own shares through foreign structures will be able to take them into direct possession. The list of “economically significant” organizations will be established by the government without the possibility of challenging the inclusion.

The law was submitted to the State Duma on August 4, 2022 by United Russia members Andrei Kutepov, Alexander Bryksin and Oleg Tkach. It is assumed that the law should help keep the manageability of the business and its ability to pay dividends against the backdrop of blocking the decisions of real owners by “unfriendly leaders”. On July 20, 2023, the State Duma adopted law on the second and third readings. On July 28, it was approved by the Federation Council.

Polina Motyzlevskaya