Adopts new restrictions on payments of dividends to the shareholders from the sanctioned states
04 May 2022
On 4 May 2022, by the Presidential Decree No.254, the Russian Federation adopted new restrictions on payments of dividends exceeding the amount of 10 million Russian rubles. The payment of dividends from a Russian limited liability company to its shareholders from the states that have adopted sanctions against the Russian Federation should be made to the special type “C” account in rubles. Similar restrictions on payments of dividends in joint stock companies were adopted earlier.
Additionally, the Decree amends several Presidential Decrees adopted since 1 March 2022. The amendments include the following changes:
1) For a number of transactions with foreign citizens from sanctioned States the Russian residents will no longer need to obtain the Government’s permission (including the acquisition of shares in a Russian company below a 25 per cent cap, and transactions with real estate);
2) The restriction on fulfillment of obligations before creditors from sanctioned States applies to independent guarantees that are used to guarantee credits and loans or other financial instruments.
3) In cases when Russian residents obtain permission to fulfill the obligation before the sanctioned persons, the requested amount should be transferred in Russian rubles on type “C” account.
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