The Russian Government Issued Resolution on How to Obtain Permit for Transactions with Russian LLC Shares

26 September 2022
Anzhelika Kalashyan
Legal Trainee
Nadezhda Fedotova
Associate

Pursuant to the Decree of the President No 618 dated 8 September 2022, which established a special procedure for transactions with shares of Russian LLC, on 19 September 2022 the Government adopted Resolution No 1651 on the procedure for issuing permits for such transactions.

For general information on the need to obtain permits from the Government Commission for transactions with shares of Russian LLC please refer to our update as of 13 September 2022.

In order to obtain the consent of the Government Commission it is necessary to submit the list of documents provided for by the Government Decree No 295 dated 6 March 2022 (as amended on 19 September 2022):

  • application for a permit according to the form established by the Ministry of Finance

  • request for a permit in a free form, containing information about the planned transaction (purpose, subject, content, essential terms of the transaction, the planned validity period of the permit, the number of votes for the shares that are the subject of the transaction)

  • documents confirming the applicant’s state registration

  • constituent documents of the applicant

  • an identity document of the applicant, if it is an individual

  • document informing about beneficiaries and controlling persons of an non-resident associated with unfriendly countries

At the same time, only residents and non-residents associated with unfriendly countries can be applicants for such planned transactions, despite the fact that transactions between non-residents associated with unfriendly countries and non-residents not associated with them are also banned. Only non-residents associated with unfriendly countries can be applicants on the transactions planned between such non-residents.

In pursuance of the Decree, notaries, when notarizing transactions with shares of Russian LLC, will have to check whether the parties to the transaction have a designated permit.

At the same time, as for now, the question of the terms of consideration of appeals submitted to the Government Commission remains open, since neither regulations nor explanations of the authorities have resolved this gap. Moreover, it is also unclear what actions can be regarded as allowing to determine the management conditions of an LLC and (or) the conditions for their entrepreneurial activity. Moreover, it is also unclear what actions can be regarded as allowing to determine the management conditions of an LLC and (or) the conditions for their business activity.