Russia’s antitrust watchdog imposed new rules governing foreign investment in strategic sectors of the economy. In particular, the Federal Antimonopoly Service promulgated guidelines for implementing law 57-FZ addressing foreign investments in certain strategic sectors of the economy. In line with the interpretation of the antitrust authority, the requirement of notifying the Russian Federal Antimonopoly Service is triggered whenever a foreign investor comes to acquire a stake of five percent or more in a strategic enterprise. At the same time, if businesses operating with foreign capital generate a new commercial enterprise in one of several economic sectors that are deemed strategic, no reporting obligations arise.

At the same time, in instances where a new entity in a strategic sector emerges as a consequence of a merger or some other form of restructuring, reporting obligations are triggered for any foreign investor gaining control of the business entity. The statute mandates that any purchase of more than a one-quarter stake in a strategic commercial enterprise by a foreign investor must first be sanctioned by a specially-formed government committee. The Federal Antimonopoly Service has been designated as the agency in charge of oversight in the implementation of the law.