Foreign Investors in the emerging Russian Market

Deals involving foreign states and international organizations are subject to more stringent requirements. These entities will need to secure endorsement to acquire more than 25% of the stock in a strategic company. The final decision may be made after three months, or a maximum of six. The law does not apply retroactively, but authorities must be notified of ownership shares exceeding 5% of a strategic company. From several initial assessments and comments in the Western media, we can conclude that as expected, foreign investors regard this Russian law more than favorably, because it introduces precise clarity and definiteness for the development and implementation of a foreign businessБЂ™s strategy in Russia. The Russian business community has not remained aloof to this important activity, and is undertaking the necessary actions. On February 4, 2008 in Moscow, the Russian Union of Industrialists and Entrepreneurs and the Russian Federation Chamber of Commerce and Industry signed a cooperation agreement that specifies an effective partnership for the formation of a favorable business climate and consolidation of the positive reputation of Russian business ...»