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

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.

• Type:

  • Entry and establishment (Ownership and control, Approval and admission)
  • Treatment and operation (Capital transfer and FOREX)

• Industry:

  • Not industry specific
  • Services (Electricity, gas, steam and air conditioning supply, Financial and insurance activities)

• Sources:

  • publication.pravo.gov.ru , Указ Президента Российской Федерации от 05.08.2022 № 520 "О применении специальных экономических мер в финансовой и топливно-энергетической сферах в связи с недружественными действиями некоторых иност, http://publication.pravo.gov.ru/Document/View/0001202208050002, 05 Aug 2022
  • JDSupra, Update: Russia Introduces Ban Restricting Ability of Investors to Exit from Russian Investments in Certain Industries, https://www.jdsupra.com/legalnews/update-russia-introduces-ban-8990033/?origin=CEG&utm_source=CEG&utm_medium=email&utm_campaign=CustomEmailDigest&utm_term=jds-article&utm_content=article-link, 11 Aug 2022