Introduces an FDI screening regime
25 Jan 2023
On 25 January 2023, the Estonian Parliament adopted the Foreign Investment Reliability Assessment Act (Välisinvesteeringu usaldusväärsuse hindamise seadus), that introduced an FDI screening regime. The new legislation applies to non-EU foreign investments in strategic and sensitive areas that are important for the functioning of the State (energy, transport, communications, etc.) or to specific companies, for example, providers of vital services, public undertakings, media companies, managers of State operating reserves and transport infrastructure operators.
In order to acquire 10 per cent or more of the share capital or obtain direct or indirect control over a target company, approval from the Consumer Protection and Technical Regulatory Authority is necessary. The authority will evaluate the potential impact of the foreign investment on Estonia's or another European Union member States' security and public order before granting permission.
The act will enter into force on 1 September 2023.
Nature of measure:
Type:
-
Entry and establishment (Approval and admission - screening)
Industry:
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Primary (Mining and quarrying)
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Manufacturing (Printing and reproduction of recorded media)
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Services (Transportation and storage, Publishing, audiovisual and broadcasting activities, Telecommunications, Other service activities)
Inward FDI:
No
Outward FDI:
No
Sources:
