The Russian Government Commission Clarifies Earlier Resolution on Acquisition of Real Estate by Legal Entities from So-Called ‘Unfriendly’ Countries
On May 17, 2024, the Russian Ministry of Finance published on the website a new extract from the minutes of a meeting of the subcommittee of the Russian Government Commission for Control over Foreign Investments in the Russian Federation (the “Russian Government Commission”) [1].
According to this extract, as before, it is not required to obtain authorization from the Russian Government Commission, when residents carry out transactions resulting in the following entities acquiring title to real estate:
- legal entities from so-called ‘unfriendly’ countries,
- legal entities that are under the control of entities/persons from so-called ‘unfriendly’ countries.
However, the extract now contains an exception, specifically, carrying out such transactions without authorization from the Russian Government Commission will not apply to the acquisition by the above entities of aircrafts, ships and inland boats.
As you may remember, according to the current Decree of the Russian President, authorization from the Russian Government Commission[2] is as a general rule required for real estate transactions carried out with entities/persons of foreign states that commit unfriendly actions.
The Russian Government Commission later adopted a resolution allowing the above entities to acquire real estate without authorization[3]. The Russian Government Commission has now clarified that resolution.
We would be pleased to advise you on how to obtain authorizations from the Russian Government Commission in more detail.
If you would like to discuss this matter further or have any questions, please write to Anton Kabakov or Alexandra Yudina.
Sincerely,
[1] https://minfin.gov.ru/ru/document?id_4=307179-vypiska_iz_protokola_zasedaniya_podkomissii_pravitelstvennoi_komissii_po_kontrolyu_za_osushchestvleniem_inostrannykh_investitsii_v_rossiiskoi_federatsii_ot_7_marta_2024_goda__2329. (in Russian)
[2] Para. 3 of subsection (a) of clause 1 of Decree No. 81 of the Russian President dated March 1, 2022.
[3] Extract from Minutes No. 85 of a meeting of the subcommission of the Russian Government Commission for Control over Foreign Investments in the Russian Federation held on March 7, 2022 (provided by the Russian Ministry of Finance on September 13, 2022, No. 05-06-10/ВН-46769).