Law No. 470-FZ of 04.08.2023 allows exclusion of foreigners from "unfriendly" countries from holding company owners through the courts. It was adopted to encourage the transfer of Russian business to Russian jurisdiction:
- First of all, the law regulates companies in key and strategic industries. The government will establish an appropriate list. It will include companies that meet one of the following criteria:
- the holding's total revenue exceeds 75 billion rubles a year;
- more than 4 thousand people work in it;
- the total value of assets exceeds 150 billion rubles;
- the total amount of taxes paid for the previous year is at least 10 billion rubles.
In addition, a law was signed (Law No. 422-FZ of 08/04/2023) allowing the blocking of money and property of foreign legal entities under Russian sanctions. It will enter into force in February 2024.
- The law allows the blocking of property, accounts and operations of foreign individuals and legal entities under Russian sanctions;
- The decision to impose restrictions will be made by the president;
- Financial institutions are prohibited from servicing transfers abroad if the recipient is a sanctioned person;
- For violation of the ban, the Central Bank may restrict the activities and fine brokers, investment funds or management companies in the amount of up to 5 million rubles.
See: Federal Law No. 470-FZ of 04.08.2023 “On the Regulation of Corporate Relations in Business Companies Being Economically Significant Organizations”, Federal Law No. 422-FZ of 04.08.2023 “On Amendments to Certain Legislative Acts of the Russian Federation”
Nadmitov, Ivanov and Partners Law Firm advises clients on transactions and operations, including those involving foreign entities from "unfriendly" jurisdictions.
Tel.: +7 (495) 649-87-12