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The Law on Foreign Investments in Russian Strategic Companies


Client Notes

In April 2008, the Russian parliament passed law on the "Procedure for Foreign Investments in Companies of Strategic Significance for the Defence and Security of the State" No. 57-FZ (the "Foreign Investments Law"). The Foreign Investments Law restricts investments by foreign investors in companies that are deemed to be strategic ("Strategic Companies") by requiring such investors to obtain prior Russian government clearance before, or submit a post-transaction notification after, entering into certain transactions, or, in some cases, prohibiting such investments. In addition, the Foreign Investments Law establishes special additional regulations for strategic companies involved in mining exploration and/or the exploitation of subsoil plot of federal status ("Strategic Mining Companies"). This note sets out a brief overview of the principal effects of the Foreign Investments Law.

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