The Cabinet of Ministers may simplify the registration of companies for individuals from unfriendly states

The issue of
simplifying the conditions necessary for registration of legal entities in the
Russian Federation by foreigners from unfriendly states is being actively
discussed. At the moment, such investors need to obtain a decision from the
government commission. The authorities believe that the state needs to attract
investments nowadays.

Among other
issues to be investigated, the issue of simplifying the licensing procedure for
the creation of legal entities by foreign investors is being actively
discussed. Regulators believe that foreign investors who are citizens of
unfriendly states and willing to invest in Russian business should be given
this opportunity.

It should be
mentioned that, in accordance with Decree No. 618, a special procedure has been
established for conducting transactions with shares in Russian companies since
September 2022. According to this legal act, such transactions with the
participation of subjects of unfriendly states may be carried out upon the
permission of the government commission. However, this procedure does not apply
to individuals-investors of friendly states.

The
authorities also explain that amendments to the law on public-private
partnership are currently being prepared and the changes will require an
extensive amount of investment. It is about an amount of 10-15 trillion rubles
per year. In order to implement projects of this level, all possible sources of
financing are critical, including foreign direct investment. Officials dwell on
the fact that the legislation in the field of direct investment is
significantly outdated and over the past three decades, Russian companies have
invested about $2 trillion in foreign assets, while about $1.2 trillion has
come to Russia. It is believed that states of Africa, the Middle East and
Southeast Asia are primarily interested in investing in Russian business.

According to
regulators, the existing plans to simplify the registration of legal entities
in the Russian Federation for foreign investors are still at the level of
ideas. It is not yet known how this will happen, what steps will be taken, what
requirements will alter and in what time frame.