Disposal of participant shares in LLCs should henceforth be approved by the Government Commission

12 September 2022

The Decree restricts the ability to make transactions with shares of Russian LLCs for foreign persons

Decree of the President of the Russian Federation No. 618 was published on September 8, 2022 (the “Decree”). The Decree restricts the ability to make transactions with shares of Russian LLCs for foreign persons from states undertaking “unfriendly actions with respect to the Russian Federation”.

This applies to operations that entail, directly or indirectly, the creation, modification, or termination of the rights of ownership, use or disposal of shares in the authorized capital of limited liability companies (save for credit institutions and non-credit financial organizations).

According to the Decree, any such transactions are to be authorised by the Government Commission for the Control of Foreign Investments in the Russian Federation.

The Decree also establishes that the Russian Government must, within a ten-day period, set the procedure for the Government Commission for the Control of Foreign Investments to issue the said authorizations.

We trust you will find these comments useful and remain at your disposal for further questions or assistance on the above.

Please note that this press release is based on information taken from open sources. Neither Lex Evolution, nor its authors, shall not be held liable for its contents, nor for the legal and other consequences of decision taken based on this publication.

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