On 21 January 2022, RUS CMP proposed changes to foreign investments law.
- RUS CMP described amendments to the law on foreign investments proposed by RUS CMP aimed at eliminating legal uncertainty; changes will only affect 5% investments.
- Follows RUS CMP March 2021 law on foreign investments.
- Follows RUS CMP July 2021 fishing industry protection from foreign investors.
- Amendments proposed by RUS CMP concern only cases of violation of the law, when unscrupulous foreign investors illegally acquired property/stake of a strategic firm.
- The possibility of using the mechanism for transferring shares/shares/corporate rights/property to the state already exists in law No. 57 on foreign investments.
- The amendments details legislation per the agency's law enforcement practices.
- Currently, if the transaction is void, the court applies consequences of its invalidity in line with the Civil Code and may recover everything received from such transactions.
- RUS CMP identified cases where such provision cannot be applied: in the 1st case the impossibility of returning shares/property when the sellers have ceased their activities.
- And the second case is the return of shares and/or property to the seller and/or investor that does not meet the interests of national and/or economic security.
- Amendments will not affect 95% of investments made in the Russian economy, they only affect firms of strategic importance for defense and security of the state.