October 30, 2024 an extract from the minutes of the Subcommission of the Government Commission for Control over Foreign Investments in the RF (the "Subcommission") was published on the official website of the Ministry of Finance of the RF. This document establishes new restrictions and requirements for obtaining permissions for deals with the assets of persons from so-called "unfriendly" states.
In particular, according to new rules sale of assets within the above deals must be carried out with provision of a discount of at least 60% of the market value of the assets indicated in the relevant independent evaluation report. Previously this discount rate was 50%.
In addition, there is a significant increase in the voluntary contribution amount paid into the Russian budget: instead of 15% of the market value of the assets th amount of such a contribution shall be 35%. Furthermore, the payment of this contribution is subject to the following schedule: 25% - within a month from the date of the deal, 5% - within a year and 5% - within 2 years.
For expecially big deals with market value over 50 billion rubles a consent of the President of the RF will be required.
Thus, new restrictions and requirements significantly complicate the procedure for obtaining permissions of the Subcommission for transactions on sale of foreign business in the RF. In practice, when reviewing documents, relevant ministries have already begun to apply the updated requirementss.
In particular, according to new rules sale of assets within the above deals must be carried out with provision of a discount of at least 60% of the market value of the assets indicated in the relevant independent evaluation report. Previously this discount rate was 50%.
In addition, there is a significant increase in the voluntary contribution amount paid into the Russian budget: instead of 15% of the market value of the assets th amount of such a contribution shall be 35%. Furthermore, the payment of this contribution is subject to the following schedule: 25% - within a month from the date of the deal, 5% - within a year and 5% - within 2 years.
For expecially big deals with market value over 50 billion rubles a consent of the President of the RF will be required.
Thus, new restrictions and requirements significantly complicate the procedure for obtaining permissions of the Subcommission for transactions on sale of foreign business in the RF. In practice, when reviewing documents, relevant ministries have already begun to apply the updated requirementss.