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Article

25 Mag 2022

Author:
Reuters

Russia: Lawmakers give initial approval to bill allowing takeover of foreign companies that left market in opposition to invasion of Ukraine

Russian lawmakers give initial approval to bill allowing foreign asset takeover, 24 May 2022

Russian lawmakers...gave the first stamp of approval to a bill that would allow Russian entities to take over foreign companies that have left the market in opposition to Moscow’s actions in Ukraine, the government’s online portal showed.

Scores of foreign companies have announced temporary shutdowns of stores and factories in Russia or said they were leaving for good since Russia sent tens of thousands of troops into Ukraine on Feb. 24.

The bill, passed in the first reading by the lower house of parliament, or Duma, would allow the state development bank VEB or other entities approved by a commission to act as external administration at companies where foreign ownership, specifically from countries that Moscow deems “unfriendly”, exceeds 25%...

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