Russia's State Duma on Wednesday adopted a package of laws to strengthen control over foreign investment in strategic sectors of the Russian economy.
MOSCOW (Pakistan Point News / Sputnik - 21st December, 2022) Russia's State Duma on Wednesday adopted a package of laws to strengthen control over foreign investment in strategic sectors of the Russian economy.
This package was developed to prevent risks arising from foreign investment in organizations involved in activities of strategic importance for the defense and security of the country, as well as to improve legal regulation in this area and improve the investment climate in the country.
One of the laws details the submission procedure for approval of a transaction by a foreign investor in a Russian entity by a government commission for the control of foreign investments. It also provides for preliminary approval of transactions made by foreign states, international organizations, or organizations under their control, which will allow them to acquire more than 25% of the authorized capital of a Russian company.
Another law makes mandatory for entities controlled by foreign investors to get preliminary approval of transactions and granting of rights to collect certain types of biological resources in case the volumes exceed 35% of the total allowable. This rule will apply to biological resources, the list of which will be approved by the government.
In addition, companies controlled by foreign investors that decide to engage in one of the strategic activities will have to coordinate with a special commission and obtain a license, certificate, or another permit to carry out such activities.
At the same time, a foreign organization controlled by Russian investors who do not have another citizenship and are tax residents of Russia will not need any prior authorization if the organization has disclosed its beneficiaries, beneficial owners, and controlling persons.
The first law will go into effect 10 days after the official publication, and the second one 90 days after the publication.
