Restrictions and measures of state support for business: the digest for 15 January – 4 February 2024

PROJECTS

It has been proposed that additional cases of public procurement from a single supplier be established

The Russian Government’s draft decree

Public discussions are now taking place.

Amendments have been stipulated to the Russian Government's Decree No. 339 dated 10 March 2022 relating to cases to be introduced when public procurement is conducted directly from a single supplier without a prior decision of the Government. The above, specifically concerns procurement that is conducted:

• under the Russian Government’s Decree No. 1745 dated 3 October 2022. This, among other things, relates to the right of executive authorities of constituent entities of Russia, local authorities and their units to purchase medicines and medical products and personal care products;

• to implement civil defence measures.
  
  

LEGISLATION

A temporary procedure has been approved for economically significant companies to disclose and submit information

The Russian President’s Ruling No. 73 dated 27January 2024

Came into force on 27 January 2024.

Business entities that are economically significant companies and their related parties (the categories of such parties have been named) do not disclose/submit information that is required to be disclosed/submitted under Russian legislation.

In this case, business entities/parties should:

• forward a relevant notification to a federal executive authority and other persons who are expected to receive such information;

• submit such information further to requests of such authorities and competent persons. Information so submitted will not be disclosed, including in state information systems and other sources.
  
  

The Government Commission will determine how frozen assets will be exchanged

The Russian Government’s Decree No. 7 dated 16 January 2024

Came into effect on 19 January 2024.

Amendments have been made to the rules whereby the Government Commission on Monitoring Foreign Investment in Russia issues permissions to perform transactions (operations) (the Russian Government’s Decree No. 295 dated 6 March 2022).

The Commission is, in particular, authorised to:

• determine the conditions of trade and transactions with foreign securities of residents which are recorded on accounts opened for a central depository with foreign institutions as an entity acting for the benefit of other persons which result in the ownership title to such securities being transferred to non-residents (including from hostile states) and to persons that the latter control, out of funds on the type ‘C’ accounts (refer to the Russian President’s Decrees Nos. 95 and 844 dated 5 March 2022 and 8 November 2023, respectively);

• set a procedure for calculating the aggregate original value of foreign securities which are being disposed of in the case at hand.
  
  

The rules have been adjusted for permissions for transactions to be issued

The Russian Government’s Decree No. 40 dated 22 January 2024

Came into effect on 23 January 2024.

Amendments have been made to the rules whereby the Government Commission on Monitoring Foreign Investment in Russia issues permissions to perform transactions (operations) (the Russian Government’s Decree No. 295 dated 6 March 2022).

Specifically:

• an application for permission to be issued in relation to a transaction (operation) with securities or membership interests/contributions of Russian companies should now include a report on an independent appraisal of their market value as well as key performance indicators (KPIs) and their targets for buyers that are offered as conditions for the transactions (operations) to be consummated (exceptions apply);

• persons have been identified who will monitor whether the KPIs and their targets have been attained;

• the Commission may determine a list of appraisers who are recommended to appraise securities and membership interests/contributions.

Translated by the Translation Department of Pepeliaev Group.