Update: Foreign Investments Safety Alert
Overview of Limitations of Foreign Investments and Consequences for Foreign Companies in Russia

May 18, 2022
This is the ninth update of the Foreign Investment in Russia Safety Alert initially published on 4 March 2022.

Due to the significant changes of the investment climate in Russia, the Russian Government has introduced a number of extraordinary measures to prevent foreign investor and capital flight, some of them directly targeting multinationals operating in Russia.

  • The described period demonstrated the dual approach of the Russian authorities in applying retaliatory measures.

  • The key initiatives in this area – the launch of parallel imports, the introduction of external administration of foreign companies’ assets, as well as the introduction of direct restrictive measures against foreign legal entities and individuals.

  • Issues of nationalization and confiscation of foreign property in Russia are being raised at a high level (the Speaker of the State Duma), but so far, they have not received support at the final decision-making level.

Accumulated FDI in Russia constitutes almost 700 billion USD (the majority originating from European Union countries), and their future in Russia represents a significant issue both for the Russian and European economies.

As part of our ongoing efforts to protect and support multinational investments in Russia, Kesarev has prepared a brief guide on the measures introduced by the government of Russia that affect operations of international companies in the country.

Information will be updated in response to major developments throughout the crisis.
If you would like to schedule a discussion of this paper, please contact:
Yury Panasik, Partner at y.panasik@kesarev.com