Russian president’s new countermeasures order

The president of Russia’s Order No. 737 “On Some Issues of Making (Performing) Certain Types of Transactions (Operations)” (“Order No. 737”) was signed on 15 October. It continues the series of Russian countermeasures regulations.

Here is what’s new and important in Order No. 737:

1. There is now a longer list of transactions involving joint stock company shares and for managing joint stock companies. The entry into and performance of such transactions will need to be authorised by the Governmental Commission for Control over Foreign Investment in the Russian Federation. These are now transactions between:

  • persons from “unfriendly” countries;
  • persons from “unfriendly” and “friendly” countries.

Earlier, similar requirements applied to transactions involving participatory interests in limited liability companies. Such transactions include sale and purchase, pledge, pledge management, fiduciary management, corporate (shareholders’) agreements, etc.

2. Russia’s Central Bank has been authorised to issue permits to export more than US$10,000 in foreign currency cash from the Russian Federation. Permits will be issued according to the procedure set by the Central Bank’s Board of Directors.