Russia introduces additional restrictions on foreign capital in extractive sectors. Amendments to legislation increase the number of transactions requiring government approval.
Deputies of the State Duma supported in the first reading the initiative, which significantly changes the rules of the game for foreign investors. The purpose of the document is to strengthen the protection of the country’s economic interests in key resource sectors.
The scope of control is expanding. More minerals companies are now subject to government oversight. We are even talking about those subsoil areas that do not formally have the status of objects of federal significance, but have large reserves.
The law establishes specific quantitative criteria. For example, field comes under control if its oil reserves are estimated at 50 million tons, gas at 30 billion cubic meters, and gold at 30 tons. Similar thresholds have been introduced for copper, uranium, lithium and other strategic minerals.
The amendments also affect the fishing industry. If the production of fish products brings a company more than half of its total income, and its assets are worth over 800 million rubles, such activity is considered strategic.
New procedures are being introduced for investors. It will be necessary to notify the authorized bodies when purchasing 5% of the company’s shares, and not 25%, as was previously the case in a number of cases. Major acquisitions of shares or assets will require prior approval special government commission.
The adopted amendments are aimed at creating a stricter filter for foreign investment in economically sensitive sectors. This will maintain control over national resources and increase the level of economic security.
Source: TASS
