Economically significant enterprises regain control of their Russian businesses

This year, economically important organizations (EIO) began legal proceedings to regain the right to manage their business. In all cases of suspension of corporate rights of foreign holdings, the plaintiffs were the ultimate beneficiaries together with the departments responsible for EIO. The trials were conducted in accordance with the law “On the Specifics of EIO regulation”.

Several large companies were subject to enforcement decisions, including the banking sector, insurance, retail, fertilizer production, coal mining, gold mining and tobacco distribution. Sessions on the cases of two more companies — Nevsky Shipbuilding and Ship Repair Plant and Rusagro Group-are scheduled for the first half of September.

 Status of EIO has been assigned to important companies to ensure the sovereignty and security of Russia. Their list is approved by the Government. If a foreign holding company that owns at least 50% of the voting shares or shares in an EIO commits unfriendly actions, its rights may be suspended in court. This means that it will not be able to influence the work of the Russian company and will be able to receive compensation.