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The Ministry of Finance adopted conditions for transactions with foreigners from unfriendly countries

10 января 2023
On December 22, 2022, the Subсommission of the Ministry of Finance of the Russian Federation (the “Subсommission”) adopted conditions for the issuance of the permission for transactions with foreigners from unfriendly countries:
  • availability of an independent assessment of the market value of assets;
  • sale of assets at a discount of at least 50% of the market value of the relevant assets indicated in the asset valuation report;
  • establishment of key performance indicators for new shareholders (owners);
  • availability of payment by installments for 1-2 years and (or) the obligation to voluntarily transfer funds to the federal budget in the amount of at least 10% of the amount of the ongoing (executed) transaction (operation).
The Subсommission also indicated that the following would be taken into account in deciding whether to authorize the payment of dividends to foreign shareholders:
  • the amount of paid profit (dividends) is not more than 50% of the net profit for the previous year;
  • taking into account the results of a retrospective analysis of the payment of profits (dividends) for previous periods;
  • willingness of foreign participants (shareholders) of the organization to continue commercial activities on the territory of the Russian Federation;
  • taking into account the positions of the federal executive authorities and the Bank of Russia on assessing the significance of the organization's activities and the impact of the activities carried out by the organization on the technological and industrial sovereignty of the Russian Federation, the socio-economic development of the Russian Federation (subjects of the Russian Federation);
  • establishment by federal executive authorities of quarterly key performance indicators for organizations;
  • the possibility of paying profits (dividends) on a quarterly basis, provided that the organization meets the established key performance indicators.
Source: Minutes of the meeting of the Subcommittee of the Government Commission on Monitoring Foreign Investment in the Russian Federation dated 22 December 2022 No. 118/1 (https://minfin.gov.ru/ru/document?id_4=301169-vypiska_iz_protokola_zasedaniya_podkomissii_pravitelst...)

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