Duma moves to ease rules on foreign investment in strategic sectors

The Russian State Duma, the lower house of parliament, passed in a third and final reading on Tuesday a bill which eliminates some administrative barriers for foreign businessmen who want to invest in strategic sectors of the economy.

Investors will not have to agree with the government the purchase of less than 25 percent of shares in firms involved in subsurface resource use. Previously they had to agree any acquisition of more than 10 percent.

Deals in the shares of companies operating in strategic industries will not need government permission, if the deals involve Russian citizens.

The law rules out the need to approve deals in which government-certified international financial institutions are participating.

However, the new bill gives the Defense Ministry up to 30 days to issue a conclusion on whether a deal threatens national security, up from 20 days currently.

 

Leave a comment