The Government Commission on Monitoring Foreign Investment has updated the criteria for granting permissions for the sale of shares/equity to unfriendly entities. The methods of payment for such transactions are restricted: funds must be credited to Account "C" or a Russian bank account without the possibility of transferring funds abroad, or to a foreign account with deferred payment. Unfriendly entities can only repurchase their shares/equity at market value within 2 years and with "economic benefit". The Commission has also clarified key efficiency indicators considered when granting permission: maintaining technological potential and core activities, as well as preserving jobs. As for shares of PJSC, the new owner must list up to 20% of the acquired stake on the stock exchange.
For more details, refer to the excerpt from the decision of the subcommittee of the Government Commission on Control over Foreign Investments in the Russian Federation dated July 7, 2023, No. 171/5.
Nadmitov, Ivanov and Partners Law Firm advises on obtaining permissions from the Government Commission on Monitoring Foreign Investment, the issue of sanctions, countersanctions and corporate law.
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