OREANDA-NEWS. April 10, 2013. The Government of the Russian Federation approved the draft law on introducing amendments to the Federal Law “On the Procedures of Foreign investments in the Business Entities of Strategic investments for National Defence and State Security” devised by the Federal Antimonopoly Service (FAS Russia).

The draft law is a logical continuation of economic liberalization and is aimed at further elimination of administrative barriers and simplifying the procedures of considering petitions of foreign investors.

FAS proposes the following major amendments:

Excluding ambiguity of the current edition and the need for preliminary approvals of transactions regarding users of mineral resources when the Russian Federation loses control over them;

Excluding the need for preliminary approvals of transactions when buyers are organizations controlled by the Russian Federation, the constituent territories of the Russian Federation, as well as the citizens of the Russian Federation that do not have dual citizenship and are residents for tax purposes;

Clarifying the concept of “agreement” (which will mean any arrangements and actions of foreign investors for joint voting in the governing bodies of strategic companies);

Excluding from strategic activities – use of agents of infection by economic entities mainly involved in production of food products;

Excluding the need for preliminary approvals of transactions regarding users of mineral resources if a foreign investor already has 75% and more shares as well as intra-group transactions with regard to such strategic companies;

Providing possibility to prolong validity of an earlier issued decision on preliminary approvals of transactions.

As stated by the Chairman of the Government Dmitry Medvedev. The drafted amendments are an integral part of general efforts of creating favourable investment climate: “We stimulate foreign investors, foreign business to come to a number of industries”.

That is why drafting the amendments FAS was in a continued dialogue with the business community – potential foreign investors, as well as representatives of legal firms, which undoubtedly enables to take the right steps towards further economic liberalization.

“We have carried out considerable efforts and had many meetings with foreign investors”, commented the Head of FAS Igor Artemyev. “There were other proposals which we will consider for further improvement of the law in this field”.

The Head of FAS Department for Control over Foreign Investments, Armen Khanyan, pointed out that adopting the amendments is очередным этапом stage for stimulating the inflow of foreign investments: “We will continue working in this direction. This is just the beginning –still we have to do a lot of work in the State Duma”.