New amendments to Foreign Investment Law introduce a general FDI screening

The newly amended Article 6 of the Law on Foreign Investments in the Russian Federation, signed by the President on 18 July 2017, introduces a general foreign investment screening mechanism in the Russian Federation. It provides that the Chairman of the Government Commission on Control over Foreign Investments is entitled to initiate a review of any transaction by a foreign investor in a Russian company in order to ensure national defense and state security. For the purpose of the law, the term "foreign investor" includes also a Russian citizen with a foreign citizenship as well as a Russian company controlled by foreign investors. Once a review is initiated, the transaction needs to be approved, otherwise it will be considered null and void.

• Type:

  • Entry and establishment (Approval and admission)

• Industry:

  • Not industry specific

• Sources:

  • Официальный интернет-портал правовой информации, О внесении изменений в статью 6 Федерального закона "Об иностранных инвестициях в Российской Федерации" и Федеральный закон "О порядке осуществления иностранных инвестиций в хо, http://pravo.gov.ru/proxy/ips/?docbody=&nd=102438741&rdk=&intelsearch=%EE%F2++18++%E8%FE%EB%FF++2017++%E3.++N++165-%D4%C7+, 18 Jul 2017
  • White & Case, Amendments to the Foreign Investments Law: a means to tighten control?, https://www.whitecase.com/publications/alert/amendments-foreign-investments-law-means-tighten-control?s=russia, 02 Aug 2017