Law introducing a mechanism to deprive foreign investors of the right to buy back assets has been published
The President of Russia signed Federal Law No. 319-FZ dated August 4, 2026, which limits the right of investors from “unfriendly” countries to buy back assets sold under transactions completed after February 22, 2022. The mechanism will apply if at least one of the criteria related to investors’ “conduct” is met, provided that the relevant financial conditions of the transactions are also satisfied.
For Russian owners, the amendments create grounds to permanently secure control over the acquired assets and protect their investments. For foreign investors, the changes increase the risk of losing their rights to assets entirely, including in cases where the new rules are applied broadly in practice.
For Russian owners, the amendments create grounds to permanently secure control over the acquired assets and protect their investments. For foreign investors, the changes increase the risk of losing their rights to assets entirely, including in cases where the new rules are applied broadly in practice.
Simplified relocation procedure for companies to Special Administrative Regions extended until the end of 2027
The above-mentioned Law No. 319-FZ also simplifies the transfer of foreign companies’ assets into the Russian jurisdiction when such relocation is hindered by actions of “unfriendly” countries. The law extends from one to two years the period during which the Government Commission on Foreign Investment may grant Special Administrative Region (SAR) residents a deferral for withdrawal from corporate registers in their country of previous registration.
Under Federal Law No. 290-FZ dated August 3, 2018, companies relocating to SARs must confirm their removal from foreign corporate registers within two years after the move. In practice, however, this process can be complicated by a lack of cooperation from foreign authorities, among other factors.
Under Federal Law No. 290-FZ dated August 3, 2018, companies relocating to SARs must confirm their removal from foreign corporate registers within two years after the move. In practice, however, this process can be complicated by a lack of cooperation from foreign authorities, among other factors.
Record number of foreign-invested companies registered in Russia in the first half of 2026
According to media reports, more than 4,500 companies with foreign founders were registered in Russia in January–June 2026 — 36% more than during the same period last year. The leading countries by the number of investors included China, Belarus, Kazakhstan, Kyrgyzstan, and Armenia.
The most popular sectors were trade (39%), construction (11%), manufacturing (8%), and real estate management (5%).
Business associations note that the figures demonstrate how foreign companies are adapting to the current geopolitical environment. At the same time, they emphasize that sustainable growth in foreign investment will depend on lower international tensions and reduced sanctions-related risks.
The most popular sectors were trade (39%), construction (11%), manufacturing (8%), and real estate management (5%).
Business associations note that the figures demonstrate how foreign companies are adapting to the current geopolitical environment. At the same time, they emphasize that sustainable growth in foreign investment will depend on lower international tensions and reduced sanctions-related risks.
Deposits held by individuals from "unfriendly" countries excluded from the special "C-type" account regime
A Presidential Decree introducing adjustments to the settlement procedure for depositors from “unfriendly” countries has been published. The amendments allow individuals, as well as branches and representative offices of foreign organizations registered in Russia, to receive funds in rubles that credit institutions had previously transferred to “C-type” accounts between July 1 and August 4, 2026.
On July 1, 2026, amendments to Presidential Decree No. 95 dated March 5, 2022, came into force, extending the special settlement procedure for creditors from “unfriendly” countries to bank deposits. As a result, some individuals faced restrictions on access to their funds. The Central Bank later clarified that the restrictions apply only to deposit agreements and do not cover current accounts held by foreign individuals.
On July 1, 2026, amendments to Presidential Decree No. 95 dated March 5, 2022, came into force, extending the special settlement procedure for creditors from “unfriendly” countries to bank deposits. As a result, some individuals faced restrictions on access to their funds. The Central Bank later clarified that the restrictions apply only to deposit agreements and do not cover current accounts held by foreign individuals.
Federal Tax Service strengthens transfer pricing controls
Media reports indicate that the Federal Tax Service has increased scrutiny of transfer pricing in a number of transactions. The expanded oversight now covers not only transactions between related parties but also foreign trade operations with independent counterparties from offshore jurisdictions, as well as transactions involving globally traded commodities included in the Ministry of Industry and Trade’s list.
Particular attention is being paid to the justification of market prices, the use of quoted prices, discounts, and the economic substance of transactions.
Amendments to Article 105.14 of the Russian Tax Code, effective from January 1, 2026, expanded the criteria for controlled transactions. Such transactions now include deals with counterparties from countries where the corporate income tax rate is 15% or lower, even if the parties are not interdependent. The threshold for controlled transactions remains RUB 120 million with one counterparty per calendar year.
Particular attention is being paid to the justification of market prices, the use of quoted prices, discounts, and the economic substance of transactions.
Amendments to Article 105.14 of the Russian Tax Code, effective from January 1, 2026, expanded the criteria for controlled transactions. Such transactions now include deals with counterparties from countries where the corporate income tax rate is 15% or lower, even if the parties are not interdependent. The threshold for controlled transactions remains RUB 120 million with one counterparty per calendar year.
