Return of Foreign Companies: Under What Conditions Will They Be Allowed Back into Russia?
Russian authorities allowed domestic businesses to refuse foreigners the option to buy back assets. According to lawyers, as outlined in a special issue of Pravo.ru dedicated to corporate law, this initiative is aimed at protecting domestic interests, although it simultaneously undermines legal certainty and deteriorates the investment climate.

Russian entrepreneurs have also presented their conditions, for example, proposing the creation of joint ventures. Lawyers call this a good compromise, but warn that foreign businesses may find it unfavorable, and participants in such structures will need to be prepared for conflicts of interest.

 

According to Valerian Mamageishvili, KKMP Senior Associate, the proposal of the draft law, although harsh, is expected.

 

This is an issue at the intersection of politics and law, and the norms are clearly aimed at protecting the public interests of the Russian Federation and Russian companies. If sellers believed at the time of their “exit” that the option would allow them to easily regain their positions in the local market, option holders now have a good chance of being released from these previous commitments.

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