By No.838 decree of 17th October 209, the Government of the Russian Federation adopted the Rules for preliminary approval of transactions and agreeing upon control of foreign investors or a group of persons that includes a foreign investor over business entities of strategic importance for national defense and state security (the Rules).
The Decree was devised by FAS Russia jointly with the Federal Security Service of Russian, the Ministry of Industry and Commerce and other federal executive bodies, in accordance with Part 6 Article 11 of the Federal Law «On the Procedures of Foreign Investment in Business Entities of Strategic Importance for National Defense and State Security» (further on referred to as the Federal Law).
The Rules adopted by the Decree clarify requirements to the petitions about agreeing upon transactions by foreign investors or a group of persons that includes a foreign investor, in their participation in the authorized capital of business entities that have strategic importance for national defence and state security, and (or) completing by them transactions that result in establishing control over such business entities, in the part not-regulated by the Federal Law, including:
- Requirements to s set of documents to be included in a petition, which streamlines the process of preparing a petition on preliminary approval of a transaction and reduces the time spent by the authorized body for obtaining lacking data and clarifying the presented information.
- The procedures determining the filing date (registration day) of petitions if a petitioner sends one after another several related petitions regarding the same ñòðàòåãà or introduces changes to the body of the petition after it was filed;
- The procedures for inspection of a the strategic economic entity;
- The procedures for entering into agreements to ensure executions of particular obligations specified by the Government Commission.
The Decree is aimed at eliminating typical errors made by foreign investors preparing and filing petitions about business entities of strategic importance, and clarifying the procedures for preliminary transaction approval, unregulated by the Federal Law.
