Putin renews ban on transactions with "unfriendly" foreigners’ stakes in companies

Russian President Vladimir Putin extended a ban on making transactions with stakes held by foreigners from unfriendly countries in Russian strategic companies, banks and certain other legal entities until the end of 2023.

The relevant executive order posted on Monday amends the presidential executive order of August 5 on application of special measures in the finance and fuel and energy spheres in view of unfriendly actions of certain foreign states and international organizations. The restrictions were originally effective until December 31 of this year and have now been renewed "until December 31, 2023," as stated in the document.

The ban applies to any deals changing the ownership structure in Russian companies, their charter capital and the prevailing procedure of investment projects’ implementation. Restrictions apply to transactions with shares of "unfriendly" investors in the charter capital of strategic companies, with shares of companies that produce and service equipment for the fuel and energy complex, heat and power suppliers and oil refiners, to deals with stocks of Russian banks (in the list agreed by the Cabinet and the Central Bank), and to deals with securities of companies developing major fields. The ban on transactions with stakes of investors from unfriendly states in the Sakhalin-1 oil and gas project and the Kharyaga field has a separate provision.

The President can authorize any transactions covered by restrictions by a special resolution.