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Vladimir Putin signed Federal Law On Amendments to Article 5 of the Federal Law on Privatisation of State and Municipal Property and to the Federal Law On Procedures for Foreign Investment in Business Entities of Strategic Importance for National Defence and State Security.
This Federal Law prohibits legal entities that are registered in a state or territory that are on the Finance Ministry list of states and territories offering preferential tax treatment and/or not requesting the disclosure and provision of information regarding financial transactions (offshore zones), as well as legal entities that are controlled by an offshore company or groups that include an offshore company, from taking part in the privatisation of state and municipal property.
This Federal Law also extends the provisions of the Federal Law On Procedures for Foreign Investment in Business Entities of Strategic Importance for National Defence and State Security to include these legal entities’ investment in business entities of strategic importance for national defence and state security, as well as these legal entities’ transactions with regard to these business entities.
July 1, 2017