The President of the Russian Federation has signed a Decree that extends restrictions on transactions for the purchase of shares in foreign companies.
According to the text of the Decree, until December 31, 2023, Russian companies are prohibited from paying shares in the authorized capital of a non-resident – foreign company without the permission of the Central Bank of Russia (hereinafter – the CB RF). Previously, this restriction was in effect until December 31 of the current year.
To obtain the appropriate permission, Russian company needs to draw up an application in the form of Appendix 3, approved by the Decision of the Board of Directors of the CB RF dated March 25, 2022. The completed application can be submitted to the CB RF in both paper and electronic form, attaching the following documents:
The deadline for submitting documents to the CB RF is not later than 10 working days from the date of the transaction for the payment of the share. The deadline for consideration of the application and making a decision by the CB RF is not more than 10 working days from the date of receipt of the application and documents.
The exception when obtaining permission from the CB RF is not required are operations:
Please be reminded that the list of “unfriendly” countries is indicated in the Order No. 430-r approved by the Government of the Russian Federation dated March 5, 2022. If a resident company of a foreign state participates in the transaction, which is not at such Order, then it is possible to pay for a share in the business without obtaining permission from the CB RF.
Acsour carefully monitors these legislative changes and will inform you about the latest news on this topic.