On 18 December 2023 the President of the Russian Federation issued decree No. 958 “On Amendments to Certain Decrees of the President of the Russian Federation”, according to which restrictions on certain types of deals with persons from “unfriendly” countries were extended.
Thus, the following measures previously introduced by the President of the Russian Federation are being extended:
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Types of deals (operations) carried out in a special order |
The term for which the restriction was imposed |
New term of the restriction |
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Following deals cannot be carried out without the permission of the Central Bank of the Russian Federation: 1. Operations on payment by a resident of a share, contribution, share in the property (authorized or share capital, share fund of a cooperative) of a non-resident legal entity 2. Operations on a contribution by a resident to a non-resident within the framework of the implementation of a simple partnership agreement with investment in the form of capital investments (a joint activity agreement)1 |
Until 31 December 2023 |
Until 31 December 2024 |
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Russian legal entities with obligations related to Eurobonds are obliged to ensure the fulfillment of obligations to holders of Eurobonds whose rights are recorded by Russian depositories
Such enforcement is provided by placing bonds, the payment of which, upon their placement, is made in Eurobonds or in cash with the intended use of the raised funds for the purchase of Eurobonds2 |
Until 1 January 2024 |
Until 1 July 2024 |
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Operations made with foreign “unfriendly” persons are considered void if they are held without the permission of the President of the Russian Federation in respect of: 1. Stocks of Russian “strategic” entities, their subsidiaries; 2. Shares, rights and obligations of shareholders in the Sakhalin-1 project and of the Kharyaginsky field; 3. Stocks and shares of Russian companies producing (performing maintenance, repair) equipment for the fuel and energy complex, and some other organizations3 |
Until 31 December 2023 |
Until 31 December 2025 |
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Corporate decisions in certain types of Russian companies can be made without taking into account the votes of shareholders from “unfriendly” countries4 |
Until 31 December 2023 |
Until 31 December 2024 |
1 Decree of the President of the Russian Federation No. 126 dd 18 March 2022 “On Additional Temporary Measures of an Economic Nature to Ensure Financial Stability of the Russian Federation in the Context of Currency Regulation”.
2 Decree of the President of the Russian Federation No. 430 dd 5 July 2022 “On Repatriation of Foreign Currency and Currency of the Russian Federation by Residents – Shareholders of Foreign Economic Activity”.
3 Decree of the President of the Russian Federation No. 520 dd 5 August 2022 “On the Application of Special Economic Measures in the Financial and Fuel and Energy Spheres in Connection with Unfriendly Actions by Certain Foreign States and International Organizations”.
4 Decree of the President of the Russian Federation No. 16 dd 17 January 2023 “On the Temporary Procedure for Decision-Making by Bodies of Certain Russian Business Companies”.