Restrictions and measures of state support for business: the digest for 25 November – 8 December 2024

DRAFTS

The special treatment of purchases from a sole supplier may be extended

The Russian Government’s draft decree

Public discussions are now taking place.

It has been proposed to extend until 31 December 2025 the period during which a contract with a sole supplier may be concluded on additional grounds under decisions of the Government or of the supreme executive body of a constituent entity of the Russian Federation, or under a municipal legal instrument (clause 1 of the Russian Government’s Decree No. 339 dated 10 March 2022).

LEGISLATION

The mechanism has been extended for suspending the rights of foreign holding companies within an economically significant company

Federal Law No. 446-FZ dated 30 November 2024

Came into force on 30 November 2024.

The specific aspects have been extended until 31 December 2025 of how a foreign holding company exercises its rights in relation to an economically significant company (see article 6 of Federal Law No. 470-FZ dated 4 August 2023).

A state commercial court that handed out a judgment to suspend the corporate rights of a foreign holding company may extend such judgment further to an application of a claimant (not longer than until 31 December 2025).

How will opinions be issued for corporate rights to be suspended within an economically significant company?

The Russian Government’s Decree No. 1567 dated 15 November 2024

Came into effect on 30 November 2024.

The powers have been extended of the Government Commission on Monitoring Foreign Investment in the Russian Federation. The Commission will issue opinions on whether circumstances exist under which a foreign legal entity that is not a foreign holding company will suspend exercising its corporate rights in relation to an economically significant company.

Under Federal Law No. 470-FZ dated 4 August 2023, the rules have been approved for issuing such opinions, as well as the form of an application to have such an opinion issued and the timeframes for an application to be considered.

The list of goods has been expanded for agreements to restrict prices

The Russian Government’s Decree No. 1612 dated 23 November 2024

Came into effect on 26 November 2024.

Amendments have been made to the Russian Government’s Decree No. 662 dated 26 April 2023 regarding the right of regions to enter into agreements with business entities to stabilise prices.

It has been established that the document applies to all goods. The exception is those goods that are covered by the state regulation of prices.

Previously such agreements were acceptable, among other things, with respect to individual socially significant essential foodstuffs.