State Duma Adopts Law Allowing Foreign Investors to Lose Buyback Rights to Assets
The State Duma has adopted amendments allowing foreign investors who have left the Russian market to lose their right to buy back assets they previously sold, subject to a court ruling. Proceedings may be initiated by the relevant ministry or the current owner of the asset. In both cases, the position of the Government Commission on Monitoring Foreign Investment will be required. A decision may be made where there are grounds set out in the law relating to the investor’s actions or the terms of the transaction.
The new mechanism creates additional legal uncertainty for foreign investors regarding assets they previously owned in Russia. At the same time, widespread use of the mechanism is not expected, as many buyback options have already expired and there have been few active attempts to reclaim assets.
The new mechanism creates additional legal uncertainty for foreign investors regarding assets they previously owned in Russia. At the same time, widespread use of the mechanism is not expected, as many buyback options have already expired and there have been few active attempts to reclaim assets.
AmCham Estimates U.S. Businesses’ Losses from Leaving Russia at $200 Billion
Robert Agee, President of the American Chamber of Commerce in Russia (AmCham), has estimated the total losses incurred by U.S. businesses as a result of sanctions at $200 billion. According to him, most Western companies were not interested in leaving the Russian market, while some are already exploring the possibility of returning.
In June, AmCham established a dedicated advisory unit to handle inquiries from foreign companies. Russian authorities have previously said they are open to considering the return of foreign businesses, provided certain conditions are met, including alignment with import substitution priorities and no financing of the Ukrainian Armed Forces.
In June, AmCham established a dedicated advisory unit to handle inquiries from foreign companies. Russian authorities have previously said they are open to considering the return of foreign businesses, provided certain conditions are met, including alignment with import substitution priorities and no financing of the Ukrainian Armed Forces.
Changes Introduced to the Rules for Approvals Issued by the Government Commission on Foreign Investment
The Russian Government has published a resolution amending the procedure for obtaining approval from the Government Commission for transactions covered by the President’s anti-crisis decrees. The amendments concern the regulation of foreign currency export proceeds and extend the updated mechanism until April 30, 2029. The main details of the changes, however, remain non-public and are classified as “for official use only.”
The extension allows the authorities to continue adjusting their approach to the foreign exchange market as needed. Given the confidential nature of the amendments, they are likely to be applied selectively to specific companies or sectors.
The extension allows the authorities to continue adjusting their approach to the foreign exchange market as needed. Given the confidential nature of the amendments, they are likely to be applied selectively to specific companies or sectors.
President Places Ust-Luga Oil Shareholding Under Temporary Management
The President of Russia has issued a decree placing shares in Ust-Luga Oil JSC owned by Cyprus-based CAPEFAR LIMITED under temporary management. The changes amend Presidential Decree No. 302 of April 25, 2023, “On Temporary Management of Certain Assets,” and took effect upon publication.
The shareholding was previously owned by oil trader Gunvor and was estimated at approximately 26%. The remaining stakes in Ust-Luga Oil are held by Capella UI (48.9%) and a Transneft-related entity (25%).
The shareholding was previously owned by oil trader Gunvor and was estimated at approximately 26%. The remaining stakes in Ust-Luga Oil are held by Capella UI (48.9%) and a Transneft-related entity (25%).
Government Tightens Controls on Foreign Ownership in Transport Security
The Russian Government has published a resolution amending the rules for accrediting organizations operating in the transport security sector. In particular, where foreign control is involved, companies must disclose their ownership structure, and accreditation decisions must be coordinated with the Government Commission with the participation of the Federal Antimonopoly Service (FAS).
The changes point to tighter rules for foreign participation in strategically important sectors and greater interagency oversight.
The changes point to tighter rules for foreign participation in strategically important sectors and greater interagency oversight.
