Anti-crisis support to business

A law has been adopted prohibiting advertising from being placed on foreign agents’ resources On 28 February 2024 the State Duma adopted in the third reading Draft Law No. 553750-8, which provides for a prohibition on advertising being placed on foreign agents’ resources, and on advertising of foreign agents’ resources being placed in the Russian media.

Measures to ensure economic sovereignty and economic security have been specified

New amendments to Federal Law No. 127-FZ “On measures impacting (counteracting) hostile actions of the United States of America and other foreign states” dated 4 June 2018 have come into force.

Most of the articles of double tax treaties with ‘hostile’ states have been suspended

Pepeliaev Group advises of the implications of the Russian President’s Decree, suspending most of the articles of double tax treaties with ‘hostile’ states.

A law has been adopted allowing foreign clients to be identified by foreign financial institutions

On 21 July 2023 Federal Law No. 308-FZ dated 10 July 2023 will come into effect. It provides for the possibility of identification, for the benefit of Russian financial institutions, to be conducted by foreign financial institutions in relation to foreign persons to whom they provide services.

The Russian Ministry of Finance has approved a new List of offshore zones

Order No. 86n of the Russian Ministry of Finance dated 5 June 2023 has been published. It significantly expands the List of states and territories providing a preferential tax regime and/or not providing for disclosure and the provision of information during financial transactions (offshore zones).

Military training in 2023

On 10 May 2023, the Russian President signed Decree No. 333 calling up Russian nationals in reserve for military training in 2023.

Temporary management of property of foreign persons

25 April 2023 the Russian President signed the Decree “On the temporary management of certain property”.

Electronic call-up notices and other amendments to the law on military duty and military service

14 April 2023 saw the enactment of what is referred to as the law on electronic call-up notices, which amended certain federal laws and primarily the law on military duty and military service.

New items have been added to the existing conditions for performing transactions involving hostile non-residents disposing of shares of and membership interests in Russian Joint Stock and Limited Liability Companies

The Government Commission on Monitoring Foreign Investment in Russia has supplemented the list of conditions for carrying out transactions with a view to disposing of securities including shares of and membership interests in the issued capital of Russian business entities in which “hostile” non-residents participate.

The Government has extended the moratorium on scheduled audits of businesses until 2030 The Russian Government has adopted Resolution No. 372 dated 10 March 2023, which extends until 2030 the moratorium on audits introduced in 2022, and provides for other specific aspects of control activities.

The State Duma is preparing to pass a law which will clarify legal consequences of the invalidation of transactions with foreign investments On 15 February 2023 the State Duma considered in the first reading a Draft Law which amends article 15 of Federal Law No. 57-FZ dated 29 April 2008 “On the procedure for foreign investments in business entities of strategic importance for ensuring national defence and state security”.

A special procedure has been established for making certain transactions with securities

Further to the President’s Decree No. 138 dated 3 March 2023[1] (Decree No. 138), a special procedure has been established for performing transactions with Russian securities purchased from ‘hostile’ non-residents.