Russian Federation

Russian Federation

Russia adopts new law on the definition of a foreign investor

12 Jun 2018

On 12 June 2018, the Federal Law of May 31, 2018 N 122-FZ "On Amendments to Certain Legislative Acts of the Russian Federation regarding the clarification of the concept ‘foreign investor’ came into effect. The new rules reframe the application of rules under which foreign investment in certain sectors is subject to review, set out in the Law on the Procedure for Foreign Investment in Business Entities of Strategic Importance for National Defence and State Security. Nominally foreign entities controlled by Russian residents will no longer be considered as foreign investors, and review procedures and restrictions have been relaxed provided that the acquirer of an asset discloses their beneficial ownership.

Nature of measure:
  • Facilitation
Type:
  • Entry and establishment (Other)
Inward FDI:
No
Outward FDI:
No
Sources: