OREANDA-NEWS. December 19, 2011. Representatives of foreign companies and legal community took a favourable view of liberalisation of Russian law on foreing investments. They were able to express their assessment at a Round Table in Moscow, attended by Deputy Head of FAS Andrey Tsyganov and Deputy Head of FAS Department for Control over Foreign Investments, Armen Khanyan, reported the press-centre of FAS Russia.

The Round Table with FAS involvement (FAS is the authorised body for control over foreign investments) was on The Issues Related to Application of the Changes Introduced to the Federal Law On the Procedures for Foreign Investments in Business Entities of Strategic Importance for the National Defence and Sate Security. The Round Table was organised by Promoting Competition Non-Commercial Company.

The reason for organising the Round Table coming into effect in the near future No. 322-FZ Federal Law On Introducing Amendments to Article 6 of the Federal Law On Foreign Investments in the Russian Federation and the Federal Law On the Procedures for Foreign Investments in Business Entities of Strategic Importance for the National Defence and Sate Security of 16th November 2011.

The Round Table participants included attorneys of consulting firms, representatives of legal firms members of Promoting Competition Non-Commercial Company, as well as representatives of foreign companies that filed relevant petitions to FAS Russia. Representatives of foreign companies were interested in the applicability of the new provisions, the concept of the group of persons of a foreing investor for the purposes of law enforcement, application of the law to shareholders agreements.

Deputy Head of the antimonopoly authority Andrey Tsyganov talked about the best practice of FAS in the field of control over foreign investments in strategic business entities, highlighting detailed description of the changes to the federal law on foreign investments in strategic enterprises. FAS representatives answered all questions of the Round Table participants.

We are convinced that the amendments to the law in general liberalize the existing procedures for control over foreing investments in strategic business entities, emphasised Andrey Tsyganov.

Legal changes in this field were well received by the Round Table participants.

Reference:

On 17th November 2011, the President of the Russian Federation Dmitry Medvedev signed the Law On Introducing Amendments to Article 6 of the Federal Law On Foreign Investments in the Russian Federation and the Federal Law On the Procedures of Foreing Investments in Business Entities of Strategic Importance for National Defence and State Security, that includes measures for liberalising control over foreing investments in strategic sectors of the economy of the Russian Federation.

In particular, the amendments:

- Exclude control over transactions between organisations that are controlled by Russian owners as well as transactions involving international financial organisations, the list of which is to be approved by the Government of the Russian Federation;

- Change the criterion for economic entities being controlled by foreing investors in use of subsoil of federal status from 10 to 25 % voting shares (equity stakes) of the authorized capital;

- Exclude the following from the list of strategic activities: exploiting sources of radiation by economic entities in the civil sector of the economy, for whom such activity is not the main one, and information encryption by the banks (without participation of the Russian Federation).

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FAS Russia is the authorised body for control over foreing investments in the Russian Federation. The antimonopoly authority gives conclusions on petitions received by FAS, carries out inspections, prepares informational and analytical materials and proposals regarding possible decisions for the Commission of the Government of the Russian Federation that makes decisions on petitions about transactions under the law on foreing investments in strategic enterprises.