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New procedure for transactions involving shares of Russian LLCs for persons from unfriendly countries

Mr. Fedor Vinokurov
Assistant manager, assistant auditor.

On September 8, the President of Russia signed Decree No. 618 “On a Special Procedure for the Implementation (Execution) of Individual Types of Transactions (Operations) Between Certain Persons”, establishing a special procedure for transactions involving shares of Russian LLCs controlled by persons from unfriendly countries. Transactions involving LLC shares will now require permission from the Government Commission for Control over Foreign Investments in the Russian Federation. In the spring this year, similar restrictions were introduced for the sale of JSC shares.

The signing of the Decree caused significant resonance in the business community, as it affects most types of transactions and the ability of foreign companies to restructure the ownership of their assets in Russia.

The Government of the Russian Federation must approve the procedure for issuing permits by the Government Commission within 10 days from the date of publication of the Decree.