Restrictions and measures of state support for business: the digest for 19 February - 3 March 2024

PROJECTS

Advertising will be banned on a foreign agent’s information resources

The law has been passed by the State Duma.

Specifically, it has been banned to place advertisements on information resources of foreign agents and to advertise such resources.

The relevant amendments have been made to Federal Laws Nos. 38-FZ “On advertising” and 2124-I “On the mass media”, dated 13 March 2006 and 27 December 1991, respectively.

Conditions will be made more specific for investments made under an IPPA

Draft federal law No. 555713-8

The draft has been put before the State Duma.

Amendments have been prepared to Federal Law No. 69-FZ “On protecting and encouraging capital investments in the Russian Federation” dated 1 April 2020.

Specifically, it has been proposed that:

• clarifications be made that measures of direct state support may be also allocated for the creation, remodelling or refurbishment of the main facility of an investment project. New definitions are being introduced: the main facility of the investment project and measures of direct state support;

• the possibility be offered to amend the terms and conditions of an IPPA with respect to the timeframes for the project to be implemented and the composition of the facilities (conditions apply);

• assessment be introduced for an investment project (where its conditions are amended in certain cases) to comply with the criteria of efficient use of relevant state budget funds for the purpose of state support;

• the volume of a subsidy that is granted be limited by the value of construction of the facilities of the investment project as confirmed by a positive opinion based on the results of the technological/pricing audit and the check whether estimated value and the actual costs are accurate and in line with the opinion of the Federal Treasury;

• a possibility be excluded for a dispute to be settled through arbitration;

• companies that entered into an IPPA after 1 January 2024 be obliged to submit next year an opinion of an expert organisation on the capital investments made. The Government will determine requirements for such an organisation.
  
  

LEGISLATION

The Government Commission will prepare recommendations to the President on how certain transactions should be made

Came into force on 26 February 2024.

As regards deals/transactions which can be consummated only further to a resolution of the Russian President (clause 5 of the Russian President’s Ruling No. 520 dated 5 August 2022), the Government Commission on Monitoring Foreign Investment in the Russian Federation will consider whether consummating such deals/transactions is expedient and will issue its recommendations.

This concerns transactions with securities/membership interests of Russian companies from a number of sectors (including strategic enterprises and JSCs) that are owned by foreign persons from hostile states.

The President, however, may adopt a special resolution pertaining to the transaction in disregard of the new requirement.

Rules have been adjusted for entering into special investment contracts (SPICs)

Published on 29 February 2024.

The rules have been changed for entering into, amending and terminating special investment contracts (SPICs) (see the Government’s Decree No. 1048 dated 16 July 2020).

The provisions which were in effect in 2022-2023 have been retained regarding the following:

• the deadline for participants in the call for bids to submit applications which were drawn up with the aid of the information system may not be later than 10 calendar days after notification is placed pertaining to the call for bids;

• the competent authority will place the notification on the Internet and in the information system not later than 10 calendar days after the resolution is adopted relating to the call for bids.