Russia's State Duma passed a law preventing foreign investors from unfriendly countries from reclaiming assets from transactions after February 2022.
Regulation & Gov ·
Russia's State Duma has passed legislation that strips foreign investors from unfriendly countries of the right to repurchase shares and stakes they divested from Russian businesses after February 22, 2022. The law establishes grounds for denying buyback options to investors who exited following that date, with enforcement mechanisms routed through the Moscow Regional Arbitration Court. Either the asset acquirer or a relevant ministry—with approval from a regulatory commission—may initiate proceedings to block an option, regardless of whether the foreign investor has actually requested a buyback.
The statute provides two pathways for terminating repurchase rights: investor conduct, such as public statements discrediting the military or announcing suspension of operations, or financial parameters including a price deviation of 25 percent or more from market value or additional capital contributions by the purchaser. Foreign investors may seek compensation within one year of a court decision, with the court determining the amount; however, compensation is withheld if the investor has been held liable for financing terrorism or extremist activities. The law takes effect upon publication.