Russia tightens legislation on foreign control in fisheries

Russian President Vladimir Putin has signed a federal law providing for a reduction of the share in the authorized capital of a fishing company, under which it is considered to be under the control of a foreign investor, reports Megafishnet.com.

According to the Federal Agency for Fishery (FAF), the limit, now set at 25%, also applies to a group of persons that includes a foreign investor.

Relevant amendments have been made to the federal laws "On Fisheries and conservation of Aquatic Biological resources" and "On the procedure for Foreign Investments in Economic Companies of Strategic Importance for Ensuring the Country's Defense and State Security".

Fishing is one of the strategic sectors for the security of the state, FAF stressed.

Transactions that lead to the establishment of control over economic entities in this area by a foreign person must be previously agreed with the relevant government commission. Otherwise, such an enterprise will lose the right to conduct fishery.

A one-year transition period is stipulated in the Law so that the investor can bring his activities in line with the new requirements of the legislation.