Foreign control over Russian strategic companies: related risks for foreign and Russian investors

In recent years as a result of Russia’s counter-sanctions policy, implemented in response to sanctions restrictions imposed by Western countries, foreign investors have been forced to exit Russian companies. However, through various ownership structures and corporate governance mechanisms, some foreign investors (including, from 2023, Russians with foreign residency/dual citizenship) still have levers of control over Russian Strategic companies / such control could be perceived, leading to a number of negative consequences for foreign investors – from fines to expropriation of assets.

Thus, in the context of a tightening policy on the part of the Russian regulator, compliance with the regulations on capital investment by foreign investors and keeping up with the latest developments in this area of particular importance.

In this material, we cover the notion of “control” / its interpretation and criteria that the FAS and Russian courts implement to establish presence of control by foreign investors over strategic companies.

Please read the attached alert for more details


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