Russian Federation

Russian Federation

Sets out new restrictions in financial, fuel and energy sectors for certain foreign investors

05 Aug 2022

On 5 August 2022, Presidential Decree No.520 set out new prohibitions in the financial, fuel and energy sectors for foreign investors connected with the states included in the “List of foreign states and territories performing unfriendly actions against the Russian Federation”. It includes a ban to conduct any transaction (operation) resulting, directly and/or indirectly, in acquisition, modification, termination, or creation of any encumbrance over the rights to own, use, or dispose of securities, participatory interests in the share capitals, or participation interests in certain Russian legal entities. The restrictions affect strategic enterprises, legal entities from fuel, energy and banking sectors and users of subsoil resources. These transactions can be conducted by approval of the President, otherwise they considered to be null and void. These prohibitions are effective from August 5, 2022 until December 31, 2022.