The State Duma has approved a judicial mechanism for blocking the return of foreign businesses

The State Duma has adopted a bill allowing foreign investors who have left Russia to be deprived of the right to buy back shares in domestic businesses if their destructive or unfair activities are detected. The relevant document was published on the Internet portal for legislative support on July 21.

The new rules will also affect those firms that were previously registered in foreign countries, where direct transfer of business to Russian jurisdiction is officially prohibited or technically impossible. We are talking about companies whose owners, when starting a business abroad, could not even imagine that they would face such harsh legal barriers from foreign countries in the future.

According to the approved regulations, it is possible to cancel a previously agreed asset recovery option through the Arbitration Court of the Moscow Region under a number of conditions related to the actions of investors after February 22, 2022. These include public support for anti-Russian sanctions, discrediting the Russian Armed Forces, improper execution of corporate contracts, or financing extremism. The economic reason for canceling the buyout will also be an underestimation of the transaction price by more than a quarter of the market value or the implementation of large additional investments by the new Russian owner, which saved the company from closure.

Block whose: authorities will limit investments in "unfriendly" cryptocurrencies

The introduction of mandatory fees is being discussed for particularly risky assets — their issuers may block access to money.

Russian President Vladimir Putin said on June 5 that companies in Russia initially relied on Western business, but then began to develop their own engineering centers and are now showing tremendous progress. The President stressed that Russia does not abandon international cooperation and continues to develop technologies together with foreign partners.

On May 6, Estonian President Alar Karis said that many European companies are waiting for the end of the conflict in Ukraine in order to resume work in the Russian market. At the same time, the President stressed that European businesses are closely monitoring the development of the situation and some entrepreneurs are considering a possible return to the Russian market.