21.07.2025

New Mechanism for Termination of Foreign Investors’ Rights under Asset Buyback Options

Draft law No. 1059849-7, which supplements Federal Law No. 160-FZ On Foreign Investments in the Russian Federation, dated 9 July 1999, with a new Article 20 (1), is currently under consideration in the State Duma. The article introduces a legal mechanism allowing Russian purchasers who bought shares (equity interests) in Russian companies previously owned by foreign investors (the “assets”) to refuse, subject to a number of conditions, to perform their obligations to return the assets to foreign investors under buyback options and other similar agreements.

According to information from public sources, the latest version of the draft law sets the conditions for refusal to perform such obligations, all of which must be met.

Read in detail in the alert at the link:

https://www.stonebridgelegal.ru/media/files/Termination_of_Foreign_Investors_Rights-ENG.pdf

 

 

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