Current trends in the application of foreign investment rules in strategic companies: Asari Legal Business Breakfast

During the discussion, the experts focused on how control over strategic companies is established, including de facto control by a foreign investor and the impact of various forms of corporate and economic relationships.

“Law No. 57-FZ and the current enforcement practice allow for a rather broad interpretation of the concept of ‘control’. It is about the ability to influence the decisions of a strategic company in different ways, and not only through shareholding”, — noted Nato Tskhakayapartner and head of the regulatory practice, who moderated the event.

In turn, Olesya Milchakova explained how the regulator approaches the assessment of control: “Within the framework of Law No. 57-FZ, control is not limited to formal ownership. We look at the entire set of relationships that may provide the ability to influence a company”..

The experts also examined in detail the specifics of determining control by a group of persons and the features of assessing aggregate control.

Senior Associate Anton Sheronov focused on the practical aspects of identifying a group of persons and interpreting changes in legislation and enforcement practice. Associate Ilya Kozhevnikov highlighted the importance of a comprehensive analysis of financial and corporate ties to identify de facto control and signs of a company’s dependence on a foreign investor, as well as the nuances of calculating aggregate control.

At the end of the meeting, the experts, together with the representative of the FAS Russia, discussed the particularities of assessing control over personal funds, comparing them with similar instruments, including ZPIFs and DIT structures.