Foreign investors’ exit from Russian assets. 2022‑23 outcomes

Regulatory matters

• Approvals in line with «countersanction» Decrees of the Russian President
• When is consent required for a transaction and what documents should be submitted to the regulator?
• Exceptions for «friendly» control and CFC: do they work in practice?
• Role of the relevant ministries and departments.
• Approval terms: discount on the market price, contribution to the federal budget / installment payment, KPI for the new business owner as terms for exiting Russian assets
• Special permission of the Russian President under Decree No. 520: is there a procedure in place and what nuances can arise?
• Approval of transaction with FAS Russia under current conditions:
• How do the approval of transactions under Federal Law «On the Protection of Competition» and other approvals with regulators compare?
• Are the approaches outlined in FAS Presidium Clarifications No. 19 relevant?
• New legislation on strategic investments (160-FZ and 57-FZ) — what will change in 2023:
• Clarifications on «quasi-strategists»;
• Tightening or specification of requirements?
• What amendments to the law are still in the works and should they be expected in the near future?
• Brief overview of the current court practice.    

Registration of sale and purchase transactions in relation to Russian assets of foreign investors

• Specifics of due diligence in respect of assets sold by foreign investors; scope of disclosed documents
• Approaches to purchase price adjustments
• Procedure of the purchase price payment
• Use of foreign banks for paying the purchase price
• Use of Russian banks for paying the purchase price
• Transactions funding by buyers; key features
• Assurances on the circumstances of the seller; does it make sense for the buyer to require a large scope of assurances on the circumstances? The role of sanctions related assurances on the circumstances of the buyer
• Composition of the seller’s obligations to compensate the buyer’s property losses; does it make sense to require a large scope of such assurances?
• Specifics of limiting the seller’s liability under the sales contract; what differs from transactions carried out before 24 February 2022
• Seller’s call options: terms and prevalence
• Authority to resolve disputes arising from sales contracts