Putin signed laws on strengthening control over foreign investment in the economy

Russian President Vladimir Putin signed plastic bag of two laws that improve control over foreign investment in strategically important sectors of the Russian economy.

The first law regulates the procedure for consideration by the government commission for the control of foreign investments of transactions of companies with foreign investors and the transactions of which companies can be submitted for such consideration.

The document also provides for the preliminary approval of transactions made by foreign states, international organizations or organizations under their control, as a result of which the right to dispose of more than 25% of the total number of votes attributable to voting shares (stakes) constituting the authorized capital of a Russian business entity is acquired. The exception is transactions involving international financial institutions created under international agreements with the participation of Russia, or international financial institutions with which Russia has concluded agreements.

The second document introduces mandatory approval of agreements and obtaining decisions of state authorities, which entail granting a foreign strategic economic society the right to harvest certain types of biological resources in the amount of more than 35% of the allowable catch level. The list of such biological resources will be approved by the government.

At the same time, the document prohibits issuing or reissuing new permits for the extraction of bioresources to a business entity if the authorized body issued a conclusion on the identification of violations when a foreign investor established control over this economic entity.

Daria Erozbek