Source: President of Russia – The Kremlin – English
In particular, the Federal Law specifies regulations for determining what kind of entities and individuals qualify as Foreign Investors with a view to applying these norms in a number of federal laws.
Foreign organisations controlled by citizens of the Russian Federation and/or Russian legal entities, and foreign citizens who are also citizens of the Russian Federation no longer qualify as Foreign Investors as defined in the Federal Law On Foreign Investments in the Russian Federation.
The amendments amend the definitions of the terms Foreign Investment and Controlled Person, envisaged by the Federal Law On Foreign Investments.
Amendments to the Federal Law On the Procedure for Foreign Investment in Business Entities of Strategic Importance for National Defence and State Security condition a number of its provisions on whether foreign organisations disclose information on their beneficiaries, beneficiary owners and controlled persons to federal executive bodies in charge of overseeing foreign investment in the Russian Federation.
The same circumstance prompted amendments in the Federal Law On Privatisation of State and Municipal Property to introduce a ban on the participation of offshore companies in transactions to privatise state and municipal property as buyers.
Legal entities controlled by an offshore company or a group of entities that includes an offshore company are no longer prevented from taking part in privatisation.