Strategic Companies

 

On 11 September 2012 the Russian President issued Decree No. 1285 “On Protection Measures for the Interests of the Russian Federation When Russian Legal Entities Perform Their Foreign Economic Activities”.

The Decree relates to Russian strategic companies (that are on the list approved by Decree No. 1009 of 4 August 2004) and their subsidiaries. In case there are claims (requests) on behalf of foreign states, international organizations, unions of foreign states, or bodies (institutions) of these organizations (including their regulatory or/and controlling bodies), the Russian strategic companies and their subsidiaries shall not, without prior consent of the authorized federal body undertake the following:

  • Provide to such foreign states, organizations and unions information on the company activity (except for the information that is subject to publication or disclosure according to the Russian laws, or disclosed at issuance, circulation or purchase of securities);
  • Amend contracts entered into by the strategic companies with foreign counterparts, and any other documents related to commercial (pricing) policy of the strategic companies in the foreign states; and
  • Dispose of shares in foreign companies, rights to conduct business activity in the foreign states, or immovable property located in the foreign states (that belongs to the strategic companies and their affiliates).

The authorized federal body shall refuse such consent if the above actions can impair economic interests of the Russian Federation. The Russian federal bodies authorized to give consent to be nominated within one month from the date of entry of the Decree into force.

The Decree entered into force on 12 September 2012

For further information please contact Igor Ostapets or Irina Dmitrieva in the Moscow office of White & Case, tel + 7 495 787 3000 .

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