At the end of February 2024, the Presidential Decree No. 143 came into force. The Governmental Commission for Control of Foreign Investments in Russia (Commission) will assess the expediency of transactions / operations, whose execution is permitted only upon the President's decision, and prepare recommendations.
This applies to transactions involving securities / shares of Russian organizations in the oil and gas, fuel and energy, credit and subsoil use and other sectors, as well as strategic enterprises owned by foreign persons from “unfriendly states”.
On 12 April 2024, amendments were published to supplement the Rules for the Issuance of Permissions under Presidential Decrees, defining the powers of the Commission and the procedure for its role in approvals.
The Commission’s consideration of documents is now based on a request from the Administration of the President of Russia for a motivated recommendation. The Subcommittee provides the Administration of the President of Russia with a reasoned recommendation on the expediency or inexpediency of the transaction.
In addition to the Commission’s approval, the relevant ministry overseeing the particular industry involved will participate in the preparing the reasoned recommendation.
However, the President retains the authority to make a special decision on a transaction, even without considering the Subcommittee’s recommendations.