Anti-crisis measures on foreign exchange transactions and corporate relations

In 2022, a decree was adopted prohibiting residents from paying shares, deposits and shares in the property of legal entities that are non-residents. This measure has been extended to 2024. Despite this, the Central Bank of the Russian Federation issues special individual permits for such operations.

To obtain permission to conduct such an operation, you must fill out a permit posted on the website of the Central Bank of the Russian Federation. It requires clarification of the need to make a payment to the property of a legal entity that is not a resident. The following documents are also required to be attached to it:

• The applicant’s passport.
• Documents disclosing the essential terms of the share payment transaction.
• Constituent documents of a foreign company (if the company is already registered), or drafts of constituent documents of a foreign company (if the company is under registration).
• Information about the beneficiaries of the foreign company.
• Information on the sufficiency of the currency in the Russian account of the resident.
• Information about where the currency on the resident’s Russian account comes from.

Anti-crisis measures also affected the decision-making procedure of some Russian business entities. It was decided to extend this measure to defend the interests of participants from friendly countries and Russia. Thus, individual companies have the right to make decisions without the heads of persons from countries that commit unfriendly actions against the Russian Federation. This decree affects companies that carry out their activities in the field of mechanical engineering, energy, trade, to foreign persons associated with foreign countries who commit unfriendly actions against the Russian Federation, Russian legal entities and individuals.

The advantage of these measures is the support of Russian companies developing in these industries and the prevention of malicious solutions for Russian societies that can cause losses.