New Conditions for Transactions Involving Disposal of Assets by Foreign Persons from Unfriendly Countries
On October 15, 2024, the Subcommission of the Government Commission for Monitoring Foreign Investment made a decision to establish new conditions for transactions involving the disposal of assets (shares, stakes) by foreign persons from unfriendly countries. The sale of such assets must be carried out with a discount of no less than 60% of the market value, and at least 35% of the value must be transferred to the federal budget within two years. For transactions involving assets worth over 50 billion rubles, the consent of the President of the Russian Federation is required.
The Russian Government Approved Rules for Issuing Licenses for Foreign Trade Activities
In accordance with the rules approved by the Government of the Russian Federation, a procedure has been established for issuing licenses for the export and import of goods. These licenses may be general, one-time, or exclusive.
Licenses are issued in electronic form and may be valid for no more than one year.
Licenses are issued by the Ministry of Industry and Trade for each item classified under the Common Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union (HS Code of the EAEU).
The Bank of Russia Clarified the Procedure for Profit Distribution to “Unfriendly” Investors under Presidential Decree No. 254 of May 4, 2022
The Central Bank of Russia clarified that Russian companies may pay dividends to participants from “unfriendly” countries in amounts exceeding 10 million rubles per month only with permission: for financial organizations — from the Central Bank, for others — from the Government Commission for Monitoring Foreign Investment. Payments exceeding the limit must go through special “C-type” accounts, and offsetting claims requires similar approvals. Non-compliance with these requirements may result in legal consequences, including administrative fines.
On October 15, 2024, the Subcommission of the Government Commission for Monitoring Foreign Investment made a decision to establish new conditions for transactions involving the disposal of assets (shares, stakes) by foreign persons from unfriendly countries. The sale of such assets must be carried out with a discount of no less than 60% of the market value, and at least 35% of the value must be transferred to the federal budget within two years. For transactions involving assets worth over 50 billion rubles, the consent of the President of the Russian Federation is required.
The Russian Government Approved Rules for Issuing Licenses for Foreign Trade Activities
In accordance with the rules approved by the Government of the Russian Federation, a procedure has been established for issuing licenses for the export and import of goods. These licenses may be general, one-time, or exclusive.
Licenses are issued in electronic form and may be valid for no more than one year.
Licenses are issued by the Ministry of Industry and Trade for each item classified under the Common Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union (HS Code of the EAEU).
The Bank of Russia Clarified the Procedure for Profit Distribution to “Unfriendly” Investors under Presidential Decree No. 254 of May 4, 2022
The Central Bank of Russia clarified that Russian companies may pay dividends to participants from “unfriendly” countries in amounts exceeding 10 million rubles per month only with permission: for financial organizations — from the Central Bank, for others — from the Government Commission for Monitoring Foreign Investment. Payments exceeding the limit must go through special “C-type” accounts, and offsetting claims requires similar approvals. Non-compliance with these requirements may result in legal consequences, including administrative fines.