Providing financing to foreign companies

In the current reality, due to the introduction of restrictive measures, foreign companies are divided into 2 categories:

- foreign companies from unfriendly states*;
- foreign companies from other (conditionally friendly) states.

When interacting with "friendly" foreign companies, residents of the Russian Federation can provide loans in rubles, make transactions and transactions with securities and real estate without the permission of the government commission.

At the same time, if a transaction or operation is carried out in respect of securities or real estate that a friendly foreign company acquired from an unfriendly one after February 22, 2022, a government commission permit will be required.

As for unfriendly foreign companies, in order to provide financing in the form of loans, transfer/purchase of securities and real estate, it is necessary to obtain the approval of a government commission.

Separately, it should be said that there are ways of financing that do not fall under the established restrictions:

• a contribution to property in which the authorized capital does not change;
• contribution to the authorized capital, which does not consist of securities (for example, shares).

If you have any additional questions, we will be happy to advise, as well as accompany the process of providing financing to foreign companies within the established restrictions.

* Unfriendly States as of March 16, 2022 are: Australia, Albania, Andorra, Great Britain (including Jersey, Anguilla, British Virgin Islands, Gibraltar), European Union member States, Iceland, Canada, Liechtenstein, Micronesia, Monaco, New Zealand, Norway, Republic of Korea, San Marino, North Macedonia, Singapore, USA, Taiwan, Ukraine, Montenegro, Switzerland, Japan);

Non-residents from unfriendly states are:

1. citizens of unfriendly states;
2. companies with a place of registration, a place of preferential conduct of business, a place of preferential profit-making in an unfriendly state;
3. persons who are under the control of persons from paragraphs 1 and 2.

Do not apply to non-residents from unfriendly states:

1. all other persons;
2. controlled foreign companies (a foreign organization or structure that is not a tax resident of the Russian Federation, is under the control of Russian tax residents (legal entities and (or) individuals) and information about which is disclosed to the tax authorities of the Russian Federation in the procedure for providing information about controlled foreign organizations).