OREANDA-NEWS. November 25, 2013. The Federal Antimonopoly Service (FAS Russia) inspected the transaction of a Chinese company acquiring shares of “Uralkali” OJSC and concluded that no pre-approval was necessary under No.57-FZ Federal Law.

In September 2013 FAS learned that Chengdong Investment Corporation (a 100% subsidiary of China Investment Corporation, CIC – a Chinese sovereign wealth fund) had become the owner of 12.5% shares of “Uralkali”. In 2012 Chinese companies acquired bonds convertible into securities of the potassium company from co-owners of “Uralkali”, and in summer 2013 exchanged the bonds into shares due to a considerable fall in quotations.

Chengdong Investment Corporation did not timely file a petition to the antimonopoly authority about the transaction. Therefore, FAS decided to verify whether the transaction was in compliance with the law on foreign investments and reqeusted additional information from the parties involved.

As the federal executive body authorized to control foreign investments in the Russian Federation, FAS verified whether the sales complied with the law on the Russian Federation on foreign investments and concluded that a pre-approval was not required since “Uralkali” OJSC at the moment is not an economic entity of strategic importance.

“FAS verified that the Chinese company acquiring the rights for 12.5% shares “Uralkali” OJSC did not need a pre-approval or a notification”, concluded Deputy Head of FAS, Andrey Tsyganov.