Temporary Procedure for Transactions with Intellectual Property Rights from Unfriendly Countries: Clarifications from The Ministry of Economic Development of the Russian Federation

2025-10-10 10:55 Legal Digest

The Ministry of Economic Development of the Russian Federation issued Letter No. 35268-KM/D01i (September 17, 2025), which clarifies the procedure for applying Russian Presidential Decree No. 430 dated May 20, 2024. The decree establishes temporary rules for transactions involving the acquisition of exclusive rights from rightsholders in unfriendly countries. Such transactions now require special approval, and failure to comply may result in significant legal risks. If your company is planning to acquire intellectual property rights from foreign rightsholders, this development directly affects your operations.

Key Legal and Regulatory Implications

Presidential Decree No. 430 introduces a temporary procedure for transactions involving the acquisition of exclusive rights to intellectual property (IP) and means of individualization from rightsholders in unfriendly countries. Since May 20, 2024, such transactions are only permissible with special approval from the Government Commission for the Control of Foreign Investments.

Who Is Affected?

All Russian legal entities and individuals planning to acquire exclusive rights from foreign rightsholders associated with unfriendly countries.

What Is Regulated?

Transactions involving the assignment of rights to IP or means of individualization (e.g., sale of patents, trademarks, copyrights).

What Is Exempt?

License agreements, commercial concession agreements, and other contracts that grant usage rights rather than transfer ownership.

Key Conditions

Identification of Unfriendly Countries and Affiliated Persons. The identification of foreign persons associated with unfriendly countries should be guided by the Ministry of Finance of the Russian Federation Letter No. 05-06-14РМ/99138 dated October 13, 2022.
Obtaining Approval. To execute a transaction, approval must be obtained from the Government Commission for the Control of Foreign Investments. The approval will specify the terms for fulfilling financial obligations.
Liability for Non-Compliance. Transactions conducted without approval may be declared null and void and may result in administrative or other liability.

Action Plan

Due Diligence: verify that the rightsholder is not affiliated with an unfriendly country.
Transaction Assessment: if the transaction involves the assignment of rights (not licensing), prepare the necessary documentation for approval.
Timely Filing: initiate the approval process in advance to avoid delays in transaction execution.

The new rules require careful attention to detail and timely legal review. To minimize risks and ensure smooth transaction processing, it is recommended to consult in advance with experts in intellectual property and international law, such as Acsour.