RF Eliminates Excessive Administrative Barriers for Investments
OREANDA-NEWS. February 15, 2012. The Government approved the list of international financial organizations, transactions with participation of which do not require approvals by the Government Commission for control over foreign investments to the Russian Federation, reported the press-centre of FAS Russia.
It took place with introduction of liberal amendments to the Laws “On the Procedures for Foreign Investments in Business Entities of Strategic Importance for National Defense and State Security” and “On Foreign Investments in the Russian Federation”.
The List is approved by No.119-r Decree of the Government of the Russian Federation of 3rd February 2012. It includes, in particular: the International Bank for Reconstruction and Development, Multilateral Investment Guarantee Agency, the European Bank for Reconstruction and Development, and the International Financial Corporation.
“The Order is aimed at eliminating excessive administrative barriers for investments by international financial organizations, to which the Russian Federation is a participant, or with which the Russian Federation concluded international agreements”, explained Deputy Head of FAS Russia, Andrey Tsyganov.
The international organizations approved by the Order do not need to obtain preliminary approvals of transactions with Russian companies by the Government Commission for control over foreign investments. At the same time, international financial organizations still have to follow notification procedures for informing the authorized body about completed transactions (Article 14 of the Law on foreign investments in strategic enterprises), and establishing control over business entities of strategic importance is prohibited (Part 2 Article 2 the Law on foreign investments in strategic enterprises).
On 18th December 2011 came into force 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 the Business Entities of Strategic Importance for National Defence and State Security” of 17th November 2011, that provides for measures liberalizing control over foreign investments in strategic sectors of the economy of the Russian Federation.
The amendments, in particular:
- Exclude control over transactions between organizations that are controlled by Russian owners as well as transactions involving international financial organizations, the list of which are to be approved by the Government of the Russian Federation;
- Change the criterion for economic entities being controlled by foreign 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).
FAS Russia is an authorized body for control over foreign investments in the Russian Federation. The antimonopoly authority gives opinions on received petitions, carries out inspections, and 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 filed under the law on foreign investment in strategic enterprises.