OREANDA-NEWS.  August 01, 2012. The Head of FAS Igor Artemyev reported to the Government of the Russian Federation on the measures for simplifying control over foreign investments to economic entities of strategic importance, reported the press-centre of FAS Russia.

The measures outlined by FAS Russia are aimed at eliminating administrative barriers for foreign investors exercising transactions with strategic companies, as well as for clarifying the control procedures in this field.

Igor Artemyev reported that in the interests of foreign investors the amendments provide for possibility to ask the authorized body to prolong the period of validity of a decision on a preliminary approval of a particular transaction, earlier approved by the Government Commission.

The draft amendments exclude use of infection agents in production of food products from the list of strategic activities; the Government Commission will not have to consider petitions, filed under the Federal Law “On Foreign Investments in the Russian Federation” regarding non-strategic companies.

The new measures also exclude preliminary approvals of transactions in the field of subsoil use for those foreign investors (groups of persons), that already owe 75% or more percentage of the registered capital of strategic companies that use sites of subsoil resources of federal importance.

The Government of the Russian Federation supported the proposed measures.

“The amendments simplify the procedures of state control over foreign investments and will be forwarded to the interested ministries and agencies according to the established procedures”, pointed out the Head of FAS, Igor Artemyev.

Reference:

No.57-FZ Federal Law “On the Procedures of Foreign Investments in Economic Entities of Strategic Importance for National Defence and State Security” of 29th April 2008 (No.57-FZ Federal Law) sets limitations for foreign investors participating in the registered capital of economic entities of strategic importance, and completing transactions that result in establishing control over such entities.

In 2011, No.332-FZ Federal Law of 16th November 2011 introduced significant changes to No.57-FZ Federal Law, in particular:

- Transactions with Russian economic entities exercised by international financial organizations and foreign companies under control of Russian owners are excluded from state control;

- The list of activities of strategic importance is shortened (operating radiation sources (medical, X-ray equipment), information encryption by the banks, in the registered capital of which the Russian Federation has not made a contribution, are excluded from the list);

- The criteria for economic entities, that use subsurface sites of federal status, to be subject of control of a foreign investor without a preliminary approval are changed from 10% to 25 % of voting stock (shares) that foreign investors can dispose of.