Approval of a transaction by the Government Commission
Restrictions have been imposed on transactions involving non-residents from “unfriendly” states starting from March 2022 in respect of joint stock companies and real estate, and from September 2022 in respect of other companies. Such transactions are subject to an authorization procedure and may only be entered into after they are approved by the Government Commission for the Control of Foreign Investment in the Russian Federation (the “Government Commission”).
When issuing approvals, the Government Commission also has the power to determine the conditions upon which such a transaction will be concluded. In practice, such individual conditions are set for almost every transaction. These circumstances must be taken into account when planning the transaction and approving the transaction documentation.
The attorneys in our Transactions and Corporate Law Practice, with many years of experience in mergers and acquisitions under Russian and foreign law, are ready to provide legal support in having a transaction approved by the Government Commission, offering comprehensive assistance to Russian and foreign persons in this procedure.
- Drafting a set of documents for the Governmental Commission
- Providing support for the application at every stage
- Coordinating the parameters of a planned transaction with authorized persons
- Providing advice on the process of applying to the Government Commission and receiving its approval
- Represented the interests of the Russian management in an MBO (management buy-out) transaction involving the Russian assets of a leading packaging manufacturer. Our work included preparing an application to the Government Commission for approval of a transaction and providing support throughout.
- Represented the interests of a global plastics and industrial chemicals manufacturer in a business sale transaction in Russia and Belarus, including providing support for the application to the Government Commission.
- Advised one of the world’s largest producers of sauna and spa equipment with respect to the sale of its Russian subsidiary, including full transactional work and preparation of a turnkey application to the Governmental Commission; we successfully obtained approval of the transaction.