Foreign investors may be prohibited from buying back shares in companies

Foreign investors who have left the Russian Federation, having concluded an option (buyback of shares in the long term) with domestic partners, may be prohibited from making a deal to return shares in the company. this will apply to cases where the asset has a serious socially significant impact on the economy, Izvestia has learned. The State Duma Committee on Property, Land and Property Relations has prepared amendments to the law "On Foreign Investments in the Russian Federation" (the document is available to the editorial board).

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Moreover, the decision on such a ban will be made by the agency that regulates a particular sector of the economy. The bill has already been sent to the government for approval, and the Ministry of Economic Development is forming the Cabinet's response.

The bill also stipulates other significant details of the return of foreign companies. For example, the new, now Russian owner can unilaterally refuse to fulfill the option. And this is possible in several cases at once. Thus, if the headquarters of a foreign company is located in a state that commits unfriendly actions in relation to the Russian Federation, as well as - if the shares of the company went to the Russians in the period from February 24 to March 1, 2025.

Plus, the transaction will not take place if the option price is below the market price, or two years or more have passed since its conclusion. And during this time the domestic owner fulfilled and is fulfilling its obligations to employees and creditors. Such amendments are proposed immediately to the second reading to the draft already submitted to the State Duma - it has already passed the first approval of deputies, its author - a member of the State Duma Committee on Property, Land and Property Relations Vladimir Reznik.

In the press service of the department "Izvestia" confirmed that the deputy bill is under consideration in the Ministry: its position will be presented in due time. The Ministry also noted that the issue of the conditions for the return of foreign investors is complex and requires a balanced approach.

Read more in the exclusive material of "Izvestia":

Znachat so: foreign investors may be prohibited to buy back shares of companies