On January 23, 2024, amendments[1] to the rules for the issuance of permits by the Government Commission for transactions (operations) (hereinafter, the “Government Commission Permit Rules”) came into force.
The Rules for the Issuance of Permits by the Government Commission approved by the Government of the Russian Federation were supplemented by paragraph 5(1) with a list of additional documents to be attached to an applicant's application for a permit, namely:
However, these additions are not new, as the rule on submission of such appraisal report and KPIs was previously stipulated by the minutes of the Government Commission and applied in practice.
What is new, however, is that this clause 5(1) does not apply to:
The rules for the issuance of permissions by the Government Commission have also been supplemented with provisions on the monitoring of the achievement of key performance indicators (KPIs) by specialized supervising agencies through which applicants apply for the permissions.
[1] Resolution of the Government of the Russian Federation of 22.01.2024 No. 40 "On Amendments to Resolution of the Government of the Russian Federation of March 6, 2022 No. 295".
The Rules for the Issuance of Permits by the Government Commission approved by the Government of the Russian Federation were supplemented by paragraph 5(1) with a list of additional documents to be attached to an applicant's application for a permit, namely:
- a report on an independent appraisal of the market value of alienated securities of Russian legal entities and (or) shares in the authorized capitals of Russian legal entities, conducted by an appraiser from the list recommended by the Government Commission;
- key performance indicators (KPI) and their target values (if any) for buyers (acquirers).
However, these additions are not new, as the rule on submission of such appraisal report and KPIs was previously stipulated by the minutes of the Government Commission and applied in practice.
What is new, however, is that this clause 5(1) does not apply to:
- intra-group transactions, i.e., transactions between persons included in one group of persons in accordance with the legislation of the Russian Federation on the protection of competition;
- transactions carried out between persons connected with unfriendly states.
The rules for the issuance of permissions by the Government Commission have also been supplemented with provisions on the monitoring of the achievement of key performance indicators (KPIs) by specialized supervising agencies through which applicants apply for the permissions.
[1] Resolution of the Government of the Russian Federation of 22.01.2024 No. 40 "On Amendments to Resolution of the Government of the Russian Federation of March 6, 2022 No. 295".