Restrictions on stock transactions: details are important
Any bill is, first of all, nuances, correct interpretations and options for its application.
Decree of the President of the Russian Federation No. 520 dated August 5, 2022 provided for a ban on transactions with shares of strategic companies, fuel and energy companies and companies servicing them, users of subsurface areas, hydrocarbon deposits and other minerals, as well as a number of banks, without special permission of the President of the Russian Federation.
The restrictions of the Decree affect both direct and indirect transactions with shares. In addition, we are talking about changing the scope of rights.
In November 2022, a list of fuel and energy companies appeared that required special permission from the President of the Russian Federation to conduct operations with securities. These are:
- manufacturers of equipment for fuel and energy sector organizations;
- processing of raw materials (oil and derivatives);
- companies performing maintenance and repair work for fuel and energy sector organizations;
- Producers of refined petroleum products and raw materials;
- manufacturers and suppliers of heat and electricity.
The list includes 191 legal entities.
The restrictions are formulated very broadly. This is what we mean when we talk about the importance of details and mechanisms of interpretation of prescriptions. You can try to figure it out on your own, but it’s better to entrust the matter to professionals. ARAVANA Multifamily Office lawyers, together with partners, are ready to analyze each individual case and help their clients make the right decisions.
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