Russian government amended rules for deals with foreign investors in strategic industries
The Russian government has made changes to the rules for giving consent to transactions establishing foreign investors’ control in strategic industries, fisheries sector included. This applies to temporarily transferred rights to administer voting shares, reports Megafishnet.com.
When determining foreign participation in a business, the temporarily transferred rights to administer voting shares must now be taken into account.
The Decree No. 1864 dated 18 November 2020 details the basis of the temporary transfer as that of a trust management agreement, a pledge agreement, a repo agreement, a security payment, or other agreement or transaction.
It should be mentioned that in July 2020, a law was adopted aimed at eliminating attempts to circumvent the requirements of legislation on the consent to be collected from the government for foreign participation in strategic industries. These sectors also include the fisheries industry.
As a result, the government rules for foreign investors in strategic sectors have been brought in line with the above law.
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