The law on the return of foreign brands will be adopted as early as June

As early as June, the State Duma intends to consider in the second and third readings a bill on the return of foreign brands to Russia - how companies will be able to exercise their rights to buy back shares. "Izvestia" has familiarized itself with the updated concept on this issue. It has already been approved by the Ministry of Finance, according to the department's papers, which the editorial board has.

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The project describes in what cases foreigners will be refused to buy back their assets. It can be given by the new owner or the agencies. According to calculations of the Association of Lawyers, such risks will appear at least 18 foreign corporations that have received the option to buy back.

The fact that an outgoing company has entered into an option deal with a domestic buyer has generally not been publicly reported. Only isolated cases are known where foreign players left the market with the hope of returning in the long run. For example, this was the case with the French Renault and the American McDonalds. The former transferred its Russian assets with the right to buy out a stake within six years. As the media wrote, similar conditions were with the restaurateurs from Vkusno - and Dot, which, however, did not disclose its terms on the deal.

The buyer of shares of a once foreign company can unilaterally refuse a new deal to return the business to a foreign investor. That is, it can block the realization of the option for several reasons: if the foreign shareholder comes from a country that commits unfriendly actions towards Russia; if the buy-back contract specifies a price below the market; if two years or more have elapsed since the contract was concluded, and the Russian owner fulfills all obligations to employees and creditors.

In such a case, the foreign business may receive compensation - its amount is set by the government. If the former partners did not fulfill their obligations before leaving, the amount of compensation under the option will be reduced, the amount of the reduction will be calculated by the court.

Federal authorities, according to the project, will have the right to deny foreign entrepreneurs the return of assets. This will be possible if the company belongs to an industry that significantly affects the socio-economic condition of the Russian Federation. And also all the previously described reasons will be determined at the same time. Critically important business related to the financial stability and defense of the country will be possible to return with the agreement of the president. The law will come into force from the day of its publication.

Read more in the exclusive material of Izvestia:

What is the strength, brand: companies that have left the Russian Federation will be banned from share buybacks as early as June