Restricts certain FDI transactions in Russian limited liability companies

On 8 September 2022, Presidential Decree No. 618 introduced new restrictions on certain transactions in Russian limited liability companies (LLC) for foreign investors “associated with states undertaking unfriendly actions with respect to the Russian Federation”. The government's prior approval will be required for transactions that result directly or indirectly in creating, modifying, or terminating (i) rights to own, use, or divest of any participatory interest in any LLC; (ii) other rights allowing the determination of the terms and conditions of management of any LLC; or (iii) other rights allowing the determination of the terms and conditions of entrepreneurial activity of any LLC. A similar procedure has been in effect since March 2022 for transactions with real estate and securities of joint stock companies.

The new restrictions entered into force on 8 September 2022.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Not industry specific

• Sources:

  • publication.pravo.gov.ru , Указ Президента Российской Федерации от 08.09.2022 № 618 "Об особом порядке осуществления (исполнения) отдельных видов сделок (операций) между некоторыми лицами", http://publication.pravo.gov.ru/Document/View/0001202209080027?index=0&rangeSize=1, 08 Sep 2022
  • JDSupra, Update: Russia Introduces Restrictions on Investors’ Ability to Restructure Holdings in or Exit Russian LLCs, https://www.jdsupra.com/legalnews/update-russia-introduces-restrictions-3207941/?origin=CEG&utm_source=CEG&utm_medium=email&utm_campaign=CustomEmailDigest&utm_term=jds-article&utm_content=article-link, 19 Sep 2022