On October 16, 2023, the official website of the Ministry of Finance published a new form required for submitting applications to the Government Commission for the issuance of permits for transactions with non-residents, the subject of which are stakes in Russian business entities.

New application form

The following columns were added to the form:

  • Credit organization/legal entity (name and registration number (if any)/INN) through which it is planned to purchase foreign currency to make payment under the transaction
  • Information on the ultimate beneficiaries of the parties to the transaction (operation), as well as the ownership structure of the parties to the transaction (operation). (previously requested only in respect of the Applicant)
  • Information on authorizations previously issued to the Applicant or its affiliated companies by the subcommittee of the Government Commission for Control over Foreign Investments in the Russian Federation.
  • Amount of funds in foreign currency held by the buyer on accounts opened with Russian and foreign banks (previously requested only in respect of the Applicant)

Recall that according to the Decree of the President of the Russian Federation dated 08.09.2022 N 618 (as amended on 15.10. 2022) “On Special Procedure for Execution (Execution) of Certain Types of Transactions (Operations) between Certain Persons”, for any transactions entailing directly and (or) indirectly the establishment, change or termination of the rights to own, use and (or) dispose of shares in the authorized capitals of limited liability companies (except for credit organizations and non-credit financial organizations) or other rights allowing to determine the terms of management of such limited liability companies and (or) the terms of implementation of their activities in the limited liability companies.

Required payment to the budget increased from 10% to 15%

Also from 06.10.2023, according to the Extract from the minutes of the meeting of the subcommittee of the Government Commission for Control over Foreign Investments in the Russian Federation of September 26, 2023, No. 193/4, in order to obtain a permit, the mandatory requirement to voluntarily send to the federal budget funds in the amount of at least 15% (previously it was 10%) of the market value of the relevant assets, as indicated in the report on an independent assessment of the market value of assets, conducted by an appraiser engaged in private valuation of assets, was established (tightened).

All changes, current state, list of companies waiting for permission and their stories: Paying dividends, selling shares and real estate by owners and shareholders from the states recognized by Russian authorities as unfriendly

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