The Russian Government Commission revises conditions for issuing authorizations
On March 27, 2023, the Government Commission for Control over Foreign Investment in the Russian Federation (further the Commission) published an extract from the minutes of its meeting of March 2, 2023, No. 143/4, which revised the conditions for granting permits for transactions aimed at disposing of shares/stocks by foreign participants/shareholders from so-called “unfriendly” countries. The changes relate to the “voluntary” contribution of funds to the budget.
The revised conditions require a “voluntary” contribution of funds to the federal budget in the amount of either
(1) At least 5% of the market value stated in the valuation report; or
(2) At least 10% of the market value stated in the valuation report, if the shares/stocks are sold at a discount of more than 90% of the market value.
Previously, such voluntary contributions were set at 10% of the transaction value, although in practice the Commission has recently started to require contributions of 5% or 10% of the valuation value.
Other conditions provided by the previous Commission protocol dated December 22, 2022, including the discount requirement and setting KPI, remain unchanged.
We would be pleased to help you with obtaining the authorization of the Russian Government Commission. If you have any questions, please contact Anton Kabakov.
Sincerely,