The Government Commission on Legislative Activities approved the second package of measures to support the economy, which also considers the possibility of using a mechanism of nationalization of the property of foreign companies leaving the Russian market.
The draft law «On External Administration» allows introducing external administration through the court in company’s where more than 25% of the shares are owned by foreign persons from unfriendly countries, in the event of termination the company’s activities in Russia.
It is assumed that the owner will be given five days to make a final decision and refuse to leave the Russian market and either sell the company or resume work.
If the company does not change its mind, the external administration initiates accelerated bankruptcy proceedings. The bill assumes that such procedure will be carried out within 2 months.
NAZALI TAX & LEGAL