The Duma will consider a bill to expand the criteria for inclusion in the list of economically significant organizations

Bill No. 464156-8, prepared for the first reading, proposes amendments to Federal Law No. 470-FZ of 04.08.2023 (ed. of 25.12.2023) "On Peculiarities of Regulation of Corporate Relations in Business Companies that are Economically Significant Organizations".

According to the explanatory note, the purpose of the amendments is to further transfer business assets to the Russian Federation and to increase the number of Russian business entities that meet the conditions for inclusion in the list of economically significant organizations (ESOs).

As a reminder, an ESO is defined as a company of significant importance for ensuring the economic sovereignty and economic security of the Russian Federation. Such a company must be included in the list of ESOs approved by the Government and meet the criteria defined by law. The level of revenue or the value of assets, among other things, must be above the thresholds of 75 billion rubles and 150 billion rubles, respectively.

It is proposed to include Russian business entities included in the consolidated register of organizations of the defense industry complex in the list of ESOs if they have revenues exceeding 10 billion rubles. In the legislator's opinion, the expansion of the criteria for inclusion in the list of ESOs will prevent the blocking of the activities of organizations of the defence industry complex.

The bill also provides for lowering the threshold of direct and (or) indirect participation of Russian beneficiaries through foreign holding companies, i.e., persons indirectly owning shares / stakes in the authorized ESO owned by a foreign holding company and being citizens and (or) residents of the Russian Federation. According to the updated draft law, a company may be classified as an ESO if the level of direct or indirect participation in it by Russian beneficiaries through foreign holding companies is:
  • at least 50% (instead of "more than") or
  • at least 30% if at the last meeting such persons were able to determine the decision of the supreme governing body of the foreign holding company, or
  • not less than 20% (instead of "more than") if restrictive blocking measures are applied by Western countries to the shareholders (participants) of the respective foreign holding company (whose share of participation directly and (or) indirectly individually or in the aggregate is not less than 20%) or to the ESO itself.