"Putin tightens rules for Russian strategical companies These companies will gotta get government approval to meet certain legal requirements imposed by abroad entities."

Russian president Vladimir Putin signed a decree exacerbating restrictions on Russian companies of strategical importance. Under the fresh rules, these entities must get the government's approval before they take certain actions required by abroad law.

Moscow set up a registry of strategical companies in the early 21st century and has since gradually extended regulations on their abroad activities.

Russian law imposes strict restrictions on abroad investment, acquisition and control of specified companies, as well as on their operations outside the country.

The registry includes a wide scope of companies from key sectors of the Russian economy, including state giants – specified as the Gazprom energy company or the Russian Railways (RWA) – as well as defence manufacture producers, large state-supported banks and high-tech companies.

The latest presidential decree further restricts the freedom of these companies to operate abroad, making it subject to government approval.

According to the Kremlin Press Service, restrictions apply in situations where ‘These activities are subject to requirements imposed by abroad state authorities, global organisations, alliances of abroad countries or bodies of specified organisations and alliances, including regulatory and supervisory authorities, or arise from abroad law’.

From now on, strategical companies and their subsidiaries may only supply abroad authorities with information that is permitted to be disclosed under Russian law, as well as data related to the issue and trading of securities.

In addition, public limited companies of strategical importance are prohibited from making their own amendments to contracts with abroad counterparties, from disposing of shares in abroad entities (by sale or otherwise), from disposing of assets abroad and from exercising business rights in another countries.

Translated by Google Translator

source:https://rt-english.com/russia/647316-putin-strategic-company-rules/