Starting from 24 February 2022, Presidential Decrees have introduced a new special procedure for certain transactions and operations. This procedure applies primarily to transactions with nationals and legal entities from states that have imposed sanctions against Russia (“unfriendly states”).
The most typical transactions and operations that require the permission of the Governmental Commission include:
- Sales and purchases and other transactions involving the transfer of securities between Russian citizens or companies and citizens from unfriendly states;
- Sales and purchases and other transactions for the transfer of real estate between Russian citizens or companies and companies from unfriendly states;
- Issuance of loans and credits in rubles by Russian citizens or companies to persons from unfriendly states;
- Issuance of foreign currency loans and credits by Russian citizens or companies to any foreign persons;
- Crediting of foreign currency by Russian citizens or companies to their foreign accounts and deposits;
- Relaxation of requirements for mandatory sale of foreign currency earnings and others.
Special permission from the Bank of Russia is required for the following transactions and operations:
- Payment of shares in foreign legal companies;
- Payment of profit without using a C-account to a member of an LLC from a unfriendly country, etc.
The PB Legal | Panin, Bayramkulov & Partners provides legal services to its clients in connection with projects involving special procedures for transactions (operations) and obtaining permission from the Government Commission, the Bank of Russia and the Ministry of Finance of Russia.
Constant monitoring of regulatory changes in the field of sanctions policy, participation in law-making activities and extensive experience in interacting with various state authorities allow us to efficiently handle the tasks at hand.
Our work on projects related to special procedures for transactions (operations) and obtaining permissions includes several stages.
Obtaining special permission from the Government Commission for the Control of Foreign Investments in Russia
Our team carefully considers transactions and operations with regard to the need to obtain permission from the Russian regulatory authorities before preparing applications for permissions from the Government Commission, the Bank of Russia and the Ministry of Finance of Russia.
At this stage, our specialists analyse in detail the economic substance of the transaction and its legal qualification, the potential impact of the transaction on the economic situation of the parties and the Russian economy. The results of the analysis are used to substantiate an application to the regulatory authorities.
PREPARATION OF APPLICATIONS TO THE REGULATORY AUTHORITIES
Our team prepare the necessary applications to the Government Commission, the Bank of Russia and the Ministry of Finance of Russia in accordance with all legal and regulatory requirements.
In our applications, we provide a description of the transaction and a detailed justification of the need for permission. A well-written application, based on our successful experience with similar projects, will significantly increase the chances of obtaining a positive regulatory decision.
SUBMITTING APPLICATIONS TO THE REGULATORY AUTHORITIES AND SUPPORTING THE REVIEW PROCESS
The PB Legal | Panin, Bayramkulov & Partners team advises the client at all stages of permission of transactions and operations with the Government Commission, the Bank of Russia and the Ministry of Finance of Russia, including the application stage and the stage of review of applications by the relevant authorities.
Our experts will promptly prepare answers to additional requests from the state authorities and, if necessary, provide additional clarifications to the regulatory authorities.