Logo
  Tuesday, August 4, 2020
Sign-In  |  Sign-Up  |  Contact Us  |  Bookmark 

The Russian government has worked out a procedure for foreign shareholders' participation in the capital of strategic organizations
The Russian government has worked out a procedure for foreign shareholders' participation in the capital of strategic organizations. The new regulations will toughen restrictions on foreigners' access to natural resources. The basic principle of innovations is "the approach of permission," which implies preliminary coordination of the transactions that may lead to the foreign investor's control over a commercial organization of strategic significance for national security, a government source told Itar-Tass. The Russian Cabinet is expected to consider the relevant bills at a meeting on Wednesday. In all, the government has determined 40 kinds of activities by strategic organizations, whose authorized capitals may have foreign stakes. These include organizations working in such fields as aerospace, aviation equipment, atomic energy, natural monopolies, agents of infections, the development and production of armaments and military equipment, and the production of metals and alloys for them. "If a private investor or company "intends to obtain the right to control more than 50 percent of votes; appoint a sole executive body, secure the right to make final decisions in the strategic organization and establish control over it, he must forward the appropriate application and a business plan for consideration by a government commission," the government official said. "Commission specialists will have to give an answer within six months, or refer the application for consideration by the government or the president, who have the right to refuse to the potential investor," he went on to say. At the same time, "tougher restrictions" on foreign stakes in the authorized capital of strategic organizations are envisioned for foreign states /state-owned organizations of other countries and international organizations/ which are to pass a new procedure of obtaining permits if they have plans to acquire more than 25 shares. The amendments "should significantly decrease the level of corruption among officials who regulate foreigners' access to the management of Russian strategic companies." "The law clearly separates the levels of making positive and negative decisions," the source said, because the decision on refusing will be made not by ordinary officials, but upon special decision by the Cabinet or the Russian president," according to the government official. The restrictions on foreigners' access to natural resources of federal significance will be even tougher. In particular, restrictions will apply to oil fields with estimated reserves of more than 70 million tonnes, gas fields with estimates reserves of more than 50 billion cubic meters, gold fields containing more than 50 tonnes of gold and copper deposits with estimated reserves of more than 500,000 tonnes, if the government marks them as strategic. The new bills are not retroactive; that is the Russian government does not intend to revise the existing contracts under which foreigners have access to Russian natural resources.
Print The Russian government has worked out a procedure for foreign shareholders' participation in the capital of strategic organizations Bookmark The Russian government has worked out a procedure for foreign shareholders' participation in the capital of strategic organizations

Related News   
DecJanuary 2007Feb
MoTuWeThFrSaSu
25262728293031
1234567
891011121314
15161718192021
22232425262728
2930311234