Putin signs law that limits rights of foreign ownership of firms in Russia
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Russian dictator Vladimir Putin has signed a law that adversely affects the rights of foreign co-owners of Russian companies, according to the law’s profile on the Russian government’s website, published on Dec. 26.
Read also: International shareholders halt participation in key Russian LNG project
Law № 625-FZ extends “corporate anti-crisis measures” into 2024 and allows for the continued undermining of rights of foreign co-owners until the end of 2025.
As before, this can be done by court decision under the pretext that so-called “unfriendly” co-owners hinder the “normal functioning of the company.” This includes actions such as publicly announcing the cessation of their operations in Russia, terminating significant contracts, or laying off more than a third of their employees since Feb. 24, 2022 until Dec. 31, 2024.
Restrictions include a ban on participating in shareholder meetings, receiving dividends, sharing profits, and managing shares or stakes.
However, these rules do not apply to organizations implementing projects for the production of liquefied natural gas under production sharing agreements.
It was previously reported that international shareholders of the Russian Arctic LNG 2 project have halted their participation due to U.S. sanctions.
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Read the original article on The New Voice of Ukraine
