New Prohibitions and Restrictions Imposed on Offshore Companies Acquiring Russian Assets

18 July 2017
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Key takeaways

  • Effective 1 July 2017, new restrictions apply to acquisitions of strategic companies in Russia by offshore companies.
  • The new rules apply the same requirements to offshore companies as acquisitions by foreign states and international organizations.
  • Offshore companies cannot establish control over strategic companies or acquire state or municipal property.
  • Offshore companies will need Russian government clearance prior to acquiring more than 5% of the voting rights in a strategic subsoil user or more than 25% of the voting rights in other strategic companies.